Inflation projection raised to 8.4pc: IMF lowers growth forecast to 3.5pc

ISLAMABAD: The International Monetary Fund (IMF) has lowered Pakistan’s economic growth forecast to 3.5 percent and increased inflation projection to 8.4 percent for the next fiscal year.

In its latest report, “World Economic Outlook (WEO)” released on Tuesday on the sidelines of the spring meetings in the United States, the IMF projected Pakistan’s GDP growth at 3.6 percent for the current fiscal year.

The report, however, noted that Pakistan’s economic growth would slow down to 3.5 percent in the fiscal year 2026-27, down from the earlier forecast of 4.1 percent.

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The fund raised the inflation forecast to 8.4 percent for the next fiscal year, compared to 7.2 percent projected for the current fiscal year.

The IMF has more than doubled the current account deficit projection for Pakistan during the next fiscal year to 0.9% of GDP, up from 0.4% projected for the current fiscal year.

The fund has projected unemployment at 6.9 percent for the current fiscal year compared to 7.1 percent in fiscal year 2025.

Copyright Business Recorder, 2026