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The International Monetary Fund (IMF) has revised Pakistan’s economic growth forecast upward, projecting a 3.2% growth rate in 2025, compared to 2.1% in 2024, citing stronger fundamentals and improved financial stability across the region.
This revision is part of the IMF’s Middle East and Central Asia Regional Economic Outlook Report 2025, which shows an improved outlook for both oil-exporting and importing nations. For Pakistan, the update reflects rising remittances, lower energy prices, and resilient economic reforms that have helped stabilize the country’s fiscal position.
According to Jihad Azour, Director of the IMF’s Middle East and Central Asia Department:
“Oil exporters have benefited from increased output, while oil importers and Pakistan have seen gains from lower energy prices, robust remittances, and a thriving tourism sector.”
The IMF expects Pakistan’s GDP to reach 4.5% over the next five years, signaling sustained economic recovery. Inflation has also eased due to declining food and fuel prices, though it may rise again in 2025–26 as energy subsidies end and electricity tariffs normalize.
The report highlighted that structural reforms particularly in taxation and energy pricing have improved investor confidence and strengthened revenue collection. However, the IMF warned that expected floods in late 2025 could temporarily affect growth, inflation, and the current account balance.
The Fund noted that Pakistan’s economic resilience and ongoing reform efforts place it firmly among emerging market economies, with potential for accelerated medium-term growth if reforms stay consistent.
“With continued progress in fiscal management and energy reforms, Pakistan’s outlook remains positive,” the IMF report stated.
