The International Monetary Fund (IMF) has once again downgraded Pakistan’s economic growth forecast for the current fiscal year, citing continued economic challenges and missed targets. According to the IMF’s latest World Economic Outlook report, Pakistan’s Gross Domestic Product (GDP) growth estimate has been reduced from 3% to 2.6% for FY2024-25.
The report, released on Tuesday, indicates growing concern over Pakistan’s ability to meet its economic goals amid persistent fiscal and structural constraints. This marks the second downward revision within a few months. In its January 2025 projection, the IMF had anticipated 3% growth for Pakistan, down from an earlier estimate of 3.2% made in October 2024.
The global lender has also revised its forecast for the upcoming fiscal year, predicting continued sluggish growth, signaling that Pakistan’s economy may struggle to regain momentum in the near term.
The downgrade underscores the pressure on Pakistan’s policymakers as they navigate high inflation, fiscal deficits, and external debt obligations. Analysts warn that failure to achieve the projected targets could affect investor confidence and delay economic recovery.
The IMF’s report comes at a critical time as Pakistan prepares for budget negotiations and potential future agreements with the Fund to stabilize its economy.
