By Staff Reporter
ISLAMABAD: Pakistan’s economic growth is expected to be 3 percent in 2025, the International Monetary Fund (IMF) said, trimming its earlier forecast to match the central bank’s estimate of 2.5 percent to 3.5 percent.
The IMF’s World Economic Outlook Update predicted global growth would remain modest at 3.3 percent in both 2025 and 2026, with advanced economies slowing and emerging markets facing a mixed recovery.
Pakistan’s economy has struggled with lower-than-expected cotton output and industrial production, leading to substantial revenue shortfalls. The country has also faced elevated policy uncertainty, fiscal imbalances and inflationary pressures.
The government has implemented structural reforms in taxation, governance and energy management to improve long-term growth prospects.
Pakistan secured a $7 billion IMF loan last year, and Finance Minister Muhammad Aurangzeb has stressed the need to adhere to IMF-mandated reforms.
The IMF’s forecast assumes policy continuity, and Pakistan’s commitment to reforms will be crucial in determining its growth trajectory, the report said.
It said Pakistan’s GDP is expected to grow from 2.5 percent in 2024 to 3.0 percent in 2025 and 4.0 percent in 2026, signaling a gradual recovery period.
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