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IMF Forecasts Positive Growth Trajectory for Pakistan’s Economy

The International Monetary Fund (IMF) has released its latest report titled ‘World Economic Outlook (WEO): Steady but Slow: Resilience amid Divergence’, projecting optimistic prospects for Pakistan’s economy in the coming fiscal years. According to the report, Pakistan’s GDP growth rate is anticipated to rebound significantly, reaching 2 percent for the current fiscal year 2024, compared to a contraction of -0.2 percent in fiscal year 2023. Moreover, the IMF forecasts a robust GDP growth rate of 3.5 percent for fiscal year 2025, signaling sustained momentum in the country’s economic recovery.

IMF Forecasts Positive Growth Trajectory for Pakistan’s Economy

In addition to the growth outlook, the IMF has revised its projections for inflation and unemployment, indicating favorable trends. The inflation rate is expected to decline from 29.2 percent in fiscal year 2023 to 24.8 percent in the current fiscal year, with a further decrease to 12.7 percent projected for fiscal year 2025. Similarly, the unemployment rate is forecasted to decrease from 8.5 percent in 2023 to 8 percent in 2024, with a further drop to 7.5 percent projected for 2025.

However, challenges persist in certain areas, notably the current account balance. The IMF projects a negative current account balance of 1.1 percent for 2024, compared to -0.7 percent in 2023, with a further decline to negative 1.2 percent anticipated for 2025. Addressing structural issues to improve the current account balance remains a priority for policymakers to ensure sustained economic stability and resilience.

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As Pakistan navigates its economic recovery, prudent policy measures and structural reforms will be essential to capitalize on the positive growth trajectory forecasted by international institutions like the IMF. With concerted efforts, Pakistan is poised to leverage its potential and emerge stronger in the global economic landscape.

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