IMF Warns Pakistan of Rising Inflation and Widening Current Account Deficit

The International Monetary Fund (IMF) has projected Pakistan’s economic growth at 3.6% for the current fiscal year, despite not yet factoring in the recent flood losses. The forecast, released after the IMF’s two-week review of Pakistan’s economy, is higher than the World Bank’s estimate of 2.6% GDP growth and 7.2% inflation. In its latest World Economic Outlook (October 2025), the IMF also predicted global growth to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, reflecting the impact of shifting global trade policies. The report highlights rising inflation and a widening current account deficit as key economic challenges for Pakistan.

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