The International Monetary Fund has released its latest World Economic Outlook, revealing notable discrepancies between Pakistan’s official economic targets and projections by international financial institutions.
The International Monetary Fund has estimated Pakistan’s economic growth at 3.2% for the current fiscal year, according to its newly released World Economic Outlook report. This projection is lower than the government’s official target, highlighting a growing divergence in assessments.
The IMF also pointed out a 0.4 percentage point decline in GDP growth compared to its October 2025 estimate, indicating a more cautious outlook for the economy.
Govt target higher than IMF estimate
In contrast, the Ministry of Finance has set an economic growth target of 4.2% for the current fiscal year. Officials maintain that policy measures and improved performance in key sectors will help achieve this goal.
The ministry also reported that GDP growth stood at 3.7% in the first quarter of the current fiscal year, providing some optimism about momentum in the early months.
Outlook for next fiscal year
Looking ahead, the IMF projects that Pakistan’s GDP growth will rise to 4.1% in the next fiscal year. This suggests moderate improvement, though still short of the government’s ambitions for stronger expansion.
The Fund’s outlook reflects expectations of gradual stabilization rather than a sharp acceleration.
The World Bank has also released its projections, estimating 3% economic growth for Pakistan this year and 3.4% growth next year. These figures are even lower than the IMF’s estimates for the same periods.
The World Bank’s forecast underscores continued caution among global lenders regarding Pakistan’s economic recovery.
Economic challenges
The contrasting projections from the IMF, World Bank and Pakistan’s own government underline ongoing uncertainty about the pace of economic growth. Analysts say the differences reflect varying assumptions about reforms, external pressures and domestic economic conditions.
As policymakers push to meet ambitious targets, international institutions remain guarded, pointing to structural challenges that could limit growth.
