IMF cuts growth rate forecast of Pakistan to 2.6pc amid global tariff uncertainty
Business
It has previously projected the growth rate at 3pc
ISLAMABAD (Dunya News) – The International Monetary Fund (IMF) has revised down the economic growth forecast of Pakistan to 2.6 percent from previous 3pc.
It has also slashed the global outlook due to the uncertainty sparked by the reciprocal tariffs imposed by US President Donald Trump on several countries, including Pakistan.
The IMF has also projected a decline in Pakistan’s economic growth for the next fiscal year 2025-26.
In its World Economic Outlook report released in January 2025, the financial agency had estimated Pakistan’s economic growth for the current fiscal year at 3pc.
The IMF, in October 2024, had projected Pakistan’s economic growth for the current fiscal year at 3.2%. However, the latest projection shows that the economic output of the South Asian country will slow and it may miss the growth target.
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On the other hand, the IMF has reduced its estimate for Pakistan’s current account deficit from 1pc of GDP to 0.1pc.
Previously, the IMF expected the current account deficit would rise to $3.7 billion, but it has now been revised down to $400 million.
The IMF has stated that in the next fiscal year, the current account deficit is also expected to remain at 0.4% of GDP.
