IMF sees Pakistan economy expanding at 3.5pc in FY25

The International Monetary Fund (IMF) on Tuesday maintained Pakistan’s growth forecast at 3.5 per cent for the current fiscal year but indicated slower global disinflation to keep pressure on the masses amid higher for even longer interest rates. The IMF’s unchanged growth forecast at 3.5pc previously made in April this year has been reinforced almost a week after its staff reached an agreement with Pakistan authorities on $7bn worth of a 37-month bailout based on detailed deliberations and exchange of financial and economic data including 2024-25 budget. The government has set 3.6pc growth target for the current fiscal year. In its World Economic Outlook Update 2024, the IMF noted that overall risks to the global outlook remained balanced, as reported in April, but some near-term risks had gained prominence with implications for emerging economies and oil-importing countries like Pakistan.