IMF Projects Pakistan’s FY27 Growth at 3.5% Amid Rising Inflation Concerns

ISLAMABAD: The International Monetary Fund (IMF) has projected Pakistan’s economic growth at 3.5% for the current fiscal year, while inflation is expected to remain near double digits at 9.9%. This forecast comes despite a global growth rebound estimated at 3.4%.

In its latest World Economic Outlook report, released during the World Bank-IMF annual meetings in Bangkok, the IMF indicated that Pakistan’s current account deficit is likely to widen to 1% of GDP, reversing from a surplus of 0.5% recorded in FY2025. The report highlights a significant rise in headline inflation, which is projected to increase from 7.1% last year to 9.9% this year.

Despite these challenges, the IMF forecasts a decline in Pakistan’s unemployment rate to 6.5%, down from 6.9% last year. However, the agency did not elaborate on the factors contributing to this decrease in unemployment, raising questions about the sustainability of job creation in the current economic climate.

As the government grapples with these economic challenges, upcoming discussions among policymakers will be crucial in addressing inflationary pressures and stabilizing the economy. Stakeholders are keenly awaiting further details on the government’s strategies to manage the projected economic landscape.