The International Monetary Fund (IMF) has revised Pakistan’s economic outlook, reducing its 2025 GDP growth forecast to 3%, down from the previous projection of 3.2%. This revision is part of the IMF’s broader “World Economic Outlook Update: Global Growth – Divergent and Uncertain,” reflecting ongoing economic challenges within Pakistan. Despite this downgrade, the IMF projects that Pakistan’s GDP will remain at 4% in 2026.
This adjustment mirrors a similar revision by the Asian Development Bank (ADB), which also downgraded Pakistan’s growth forecast to 3% for the fiscal year 2024-25, from a previously estimated 2.8%. While the IMF did not specify the reasons for the downgrade, both the IMF and ADB have acknowledged the difficult economic conditions in the country but maintain a cautiously optimistic outlook for the medium term.
Also Read: IMF Reports Pakistan Facing Challenging Fiscal Situation
Globally, the IMF forecasts a growth rate of 3.3% for both 2025 and 2026, slightly below the historical average. The chief economist of the IMF, Pierre-Olivier Gourinchas, emphasized the diverging growth patterns worldwide, with stronger performance in the United States counteracting weaker results in other major economies. However, inflation is expected to ease globally, with projections of 4.2% in 2025 and 3.5% in 2026.
In other regions, the United States is expected to see GDP growth of 2.7% in 2025, while the euro area faces a slower trajectory with 1% growth. Meanwhile, China and India are set for more robust growth, with India expected to grow by 6.5% annually over the next two years.
