The International Monetary Fund (IMF) has predicted that during the next fiscal year 2025–26, Pakistan’s GDP growth rate will remain lower than the government’s set target, at 3.6%. The government had set a GDP growth target of 4.2% for Pakistan.
According to details, the IMF in its latest report “World Economic Outlook Update: Global Economy: Tenuous Resilience amid Persistent Uncertainty”” has forecast Pakistan’s GDP growth rate at 3.6% for the fiscal year 2025–26, while it has raised the growth estimate for the current fiscal year by 0.1%.
The IMF has estimated a growth rate of 2.7% for the fiscal year 2024–25, while Pakistan’s Ministry of Finance claimed in its June 2025 Monthly Economic Review that real GDP increased by 2.68% during the fiscal year 2024–25.
It is worth noting that the World Bank has estimated Pakistan’s GDP growth at 3.1% for the fiscal year 2025–26, while the Asian Development Bank (ADB) has issued a forecast of 3% for the same period.
In its latest report, the ADB has raised Pakistan’s growth estimate for the fiscal year 2024–25 from 2.5% to 2.7%. The IMF has said that global economic growth is expected to be 3% in 2025 and 3.1% in 2026. These projections are 0.2% and 0.1% higher, respectively, compared to the April 2025 report.
Among the reasons cited for this improvement are a higher-than-expected rise in early trade activities, a relatively low impact of U.S. tariff rates, improved financial conditions—especially due to a weaker U.S. dollar—and fiscal expansion in some major economies.
