Pakistan’s economic growth rate to remain at 3.6 percent, government target 4.2 percent: IMF

Islamabad: The International Monetary Fund (IMF), while releasing its latest World Economic Outlook Update report, has predicted that Pakistan’s economic growth rate is likely to be 3.6 percent — lower than the government’s target of 4.2 percent.

However, the report expressed satisfaction that the pace of Pakistan’s economy is likely to be better than the global economic growth (3% in 2025), which is a positive sign for Pakistan.

According to the IMF, the global economy will grow at a rate of 3.1 percent in 2026. The report clarified that inflation is declining and financial conditions are improving around the world, which is enabling overall economic stability.

However, the report warns that high tariffs, rising uncertainty and geopolitical tensions are key risks to the global economy.

The IMF has stressed in its report that restoring confidence, favorable financial conditions and sustainable reforms should be key policy priorities going forward.