The International Monetary Fund (IMF) announced on Tuesday that Pakistan’s economic growth is projected to reach 3.5% for the current fiscal year, according to the IMF’s latest global economic outlook report. This projection aligns with the government’s goals in the new budget, which targets a 3.6% growth rate, a significant increase from last year’s 2% growth.

Globally, the IMF predicts a 3.3% economic expansion, with India and China expected to see growth rates of 6.5% and 4.5%, respectively. However, global economic conditions face challenges such as high inflation and interest rates.

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The IMF report also highlights a potential rise in global commodity prices and anticipates possible interest rate cuts in the latter half of the year. It emphasizes external economic risks and the gradual normalization of energy and food prices post-pandemic.

The IMF has recently intensified calls for Pakistan to improve transparency within government institutions as part of negotiations for a new bailout package. Despite Pakistan’s adherence to stringent budget conditions, the IMF demands further reforms, including a 45% tax on agricultural income and the removal of exemptions in the livestock sector. Privatizing profitable state-owned enterprises (SOEs) has faced challenges, particularly due to objections from Gulf nations.

The upcoming months are crucial as Pakistan navigates through economic reforms to meet IMF benchmarks while adapting to evolving global economic conditions.