ISLAMABAD (Web Desk) — The International Monetary Fund (IMF) has reduced Pakistan’s economic growth forecast for the current fiscal year, pointing to deep-rooted structural issues in the economy.
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In its latest World Economic Outlook, the Fund revised Pakistan’s GDP growth projection to 3.2 percent for fiscal year 2026, down from the earlier estimate of 3.6 percent released in October. The 0.4 percentage point cut reflects ongoing challenges that continue to constrain economic performance.
Despite the downgrade, the IMF offered cautious optimism for the next fiscal year, projecting GDP growth of 4.1 percent in FY27, provided key reforms are implemented.
In comparison, the IMF raised India’s growth outlook for FY26 by 0.2 percentage points, maintaining it at 6.4 percent.
The National Economic Council has yet to formally revise Pakistan’s official growth target. However, the Ministry of Finance remains hopeful that growth could approach 4 percent this year, depending on second-quarter economic indicators.
The IMF also highlighted expectations of easing global inflation but warned that inflation in the United States may take longer to return to target levels. The Fund called on governments to strengthen fiscal buffers, ensure financial stability, reduce uncertainty, and push forward structural reforms to support long-term, sustainable growth.
