The International Monetary Fund (IMF) has released its latest World Economic Outlook Report, highlighting differences in Pakistan’s economic growth projections.
According to the IMF, Pakistan’s economy is expected to grow by 3.2 percent in the current fiscal year (FY26). This falls short of the government’s target of 4.2 percent, a gap of 1 percentage point.
The IMF also revised its previous outlook downward. It noted a 0.4 percentage point decline in Pakistan’s GDP growth compared to its estimates from October 2025. Looking ahead, the IMF projects growth to improve to 4.1 percent in FY27.
In contrast, the World Bank has estimated Pakistan’s growth at 3 percent for the current fiscal year and 3.4 percent for FY27. These projections are even lower than the IMF’s forecast.
Official data from Pakistan’s Ministry of Finance shows that GDP growth stood at 3.7 percent during the first quarter of FY26. This figure is slightly higher than the IMF’s current-year estimate but still below the government target.
Economists say the differing projections reflect challenges in Pakistan’s economy, including high inflation, fiscal pressures, and external shocks. Both the IMF and World Bank emphasize the need for structural reforms to achieve sustainable growth.
The IMF report underscores the importance of careful economic management. Policymakers may need to adjust fiscal policies, encourage investment, and boost exports to meet growth targets.
The analysis from the IMF also stresses that Pakistan’s medium-term growth prospects depend on stabilizing the economy and implementing reforms in key sectors such as energy, agriculture, and industry.
In other related news also read IMF Predicts Slower Export Growth for Pakistan Than Expected
With the economy under pressure, the IMF’s projections provide a benchmark for policymakers and investors. Pakistan will need strong economic planning to bridge the gap between official targets and international forecasts.
