The International Monetary Fund (IMF), while releasing the Regional Economic Outlook Report for the Middle East and Central Asia, has said that Pakistan’s economy is likely to grow at a rate of 3.6% in the current fiscal year 2024-25.
According to the report, inflation is likely to increase again in Pakistan during 2025-26. The IMF said that the abolition of electricity subsidies and normalisation of tariffs may increase inflationary pressure, while regional tensions may also affect the pace of economic growth.
It was further informed that the possible flood situation in the third quarter of 2025 may have a negative impact on the economy; however, nothing can be said with certainty yet about the severity of these effects.
In its report, the IMF has appreciated Pakistan’s continuation of economic reforms and improvement in financial discipline, while also saying that there has been a significant improvement in remittances and current accounts.
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