ISLAMABAD (Mudassar Iqbal): The International Monetary Fund (IMF) has recognized the continuity of economic reforms and fiscal improvements in Pakistan, according to its newly released Middle East and Central Asia Regional Economic Outlook Report.
The report projects that Pakistan’s economy is expected to grow by 3.6% during the current fiscal year (2024–25), reflecting signs of stabilization amidst ongoing reforms.
The IMF acknowledged positive developments in Pakistan’s economy, particularly improvements in remittances and the current account balance. These gains are seen as the outcome of persistent economic reform efforts and better financial management.
However, the report also warns of renewed inflationary pressures expected in fiscal year 2025–26. The removal of subsidies on electricity and normalization of energy tariffs are anticipated to add financial strain on households and industries alike.
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Additionally, the IMF highlighted the risk posed by regional tensions, which could negatively impact economic growth in the region, including Pakistan.
A key concern in the report is the potential impact of flooding during the third quarter of 2025. While the extent of the economic damage remains uncertain, the IMF warned that such climate events could significantly hinder Pakistan’s economic recovery.
Despite challenges ahead, the report reflects international confidence in Pakistan’s reform trajectory, encouraging further focus on sustainable economic policies, climate resilience, and social protection to maintain growth momentum.
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