IMF projects Pakistan’s GDP growth at 3.5pc for current fiscal year

The International Monetary Fund (IMF) has projected Pakistan’s GDP growth at 3.5 percent for the current fiscal year.

The IMF has stated that Pakistan’s GDP was recorded at 2 percent in the previous fiscal year. However, it has upward estimated the growth at 3.5 percent for the ongoing fiscal year. The government has set economic growth target at 3.6 percent for the ongoing financial year.

Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential. Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization.