The International Monetary Fund (IMF) has shared a positive outlook for Pakistan’s economy. It said the country is showing signs of stability under its ongoing loan programme. This progress comes despite global challenges and regional tensions.
According to the IMF report, Pakistan has met several important economic targets. These achievements are part of the Extended Fund Facility (EFF) programme. They have helped improve investor confidence in uncertain conditions.
The IMF has projected 3.6% growth for Pakistan in fiscal year 2026. This 3.6% growth forecast reflects gradual economic recovery. It also shows improved stability in key financial indicators.
The report also estimates inflation at 7.2 percent for the current fiscal year. Meanwhile, the unemployment rate is expected to remain at 6.9 percent. These figures highlight mixed economic conditions.
Experts noted that regional tensions in the Middle East have impacted Pakistan’s economy. Supply chains were disrupted, which affected trade activities. Higher global oil prices also added pressure on domestic inflation.
Despite these challenges, the IMF expects Pakistan’s foreign exchange reserves to improve. Reserves are projected to reach $17.5 billion. By the end of December, they had already risen to around $16 billion.
The report also stated that public debt is likely to remain at 73.8 percent of GDP. At the same time, Pakistan may achieve a primary surplus of 1.6 percent of GDP in FY2026.
The IMF praised the State Bank of Pakistan for its strict monetary policy. It said these measures helped control inflation. However, it stressed the need for continued reforms in financial markets.
The Fund also emphasized the importance of structural reforms. It said stronger competition in business and industry is necessary for long-term stability. These steps can support sustained economic expansion beyond 3.6% growth projections.
In addition, the IMF highlighted banking sector stability and climate resilience measures. The RSF programme will help Pakistan manage climate risks and natural disasters more effectively.
Authorities were urged to improve disaster planning and water management systems. Better coordination between federal and provincial governments was also recommended.
Overall, the IMF believes Pakistan’s economy is on a path toward gradual recovery. The expected 3.6% growth signals cautious optimism for the coming fiscal year.
In other news read more about: World Bank Revises Pakistan’s GDP Growth Forecast to 2.8% for FY 2024-25
