IMF predicts Pakistan’s economy to grow by 3.5% in FY25

ISLAMABAD: The International Monetary Fund (IMF) has forecast GDP (Gross domestic product) growth for Pakistan at 2 percent for the current fiscal year 2024, compared to -0.2 percent in fiscal 2023, and inflation at 29.2 percent. 24.8 and predicted a drop in unemployment from 8.5 percent to 8 percent.

The Fund, in its latest report, ‘World Economic Outlook (WEO): Steady but Slow: Resilience amid Divergence’, released on Tuesday, said that Pakistan’s GDP growth in fiscal year 2025 is likely to remain at 3.5 percent.

The fund revised the inflation rate estimate to 24.8 percent for the current fiscal year and 12.7 percent in fiscal year 2025 from 29.2 percent in fiscal year 2023.

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Unemployment in the country is expected to decrease to 8 percent in 2024, from 8.5 percent in 2023 to 7.5 percent in 2025.

The current account balance is projected to be negative 1.1 percent for 2043 and negative 1.2 percent for 2025, compared to negative 0.7 percent in 2027.