Close Menu
Daily ForexDaily Forex
  • Home
  • Broker Comparison
  • Market Rates
  • Market Updates
  • News
  • About us
  • Contact us
  • List your Broker
  • Advertise with us

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

3 Must-Know Risk Management Strategies for New Crypto Traders

May 31, 2025

How to Use Pivot Points to Gauge Market Sentiment in Forex Trading

May 31, 2025

How to Use Technical Analysis When Trading Crypto

May 30, 2025
Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • List Your Broker
  • Advertise with Us
  • Economic Calendar
Facebook X (Twitter) Instagram YouTube Telegram
Daily ForexDaily Forex
Demo
  • Home
  • Broker Reviews
  • Learn Forex
  • Learn Crypto
  • Market Rate
  • Market Updates
  • News
Daily ForexDaily Forex
Home » Shocking Blow to Pakistan’s Economy: IMF Slashes GDP Growth Forecast to 2.6% Amid Rising Challenges
Latest

Shocking Blow to Pakistan’s Economy: IMF Slashes GDP Growth Forecast to 2.6% Amid Rising Challenges

By Yasher RizwanMay 19, 2025No Comments2 Mins Read3 Views
Facebook Twitter Pinterest LinkedIn Telegram Tumblr Email
IMF engages with Pakistan on agricultural income tax, sparking debate on economic effects and revenue generation.
Share
Facebook Twitter LinkedIn Pinterest Email

In a stark warning to Pakistan’s economic resilience, the International Monetary Fund (IMF) has drastically cut its GDP growth forecast for the fiscal year 2024-25 from an optimistic 3.2% to a sobering 2.6%. This downward revision reflects the harsh realities of sluggish crop yields, faltering industrial activity, and growing global uncertainties shaking the foundations of Pakistan’s economy.

The IMF report reveals that the first half of the year witnessed weak economic performance, with growth barely touching 1.3% in Q1 and 1.7% in Q2. Key agricultural outputs, particularly major Kharif crops, suffered disappointing yields, while the industrial sector remains restrained, dimming hopes for a strong recovery.

Despite these setbacks, the government’s current expenditure remains steady at 18.9% of GDP, though the forecast for next year assumes a hopeful 3.6% growth that must be vigorously pursued to avoid further economic strain.

The Fund also highlights worrying signs in Pakistan’s Public Sector Development Program, noting that official disbursements have yet to match ambitious targets, and flags defense spending expected to rise slightly to 1.9% of GDP next fiscal year.

While inflation showed signs of easing with a March figure of just 0.7% year-on-year—largely due to disciplined macroeconomic policies and falling food and energy prices—core inflation stubbornly remains elevated near 9%, threatening the purchasing power of everyday Pakistanis.

The current account deficit (CAD) stands narrowly at $0.2 billion (0.1% of GDP) thanks to resilient exports and strong remittances fueling economic stability. However, the IMF warns that the CAD may widen as imports rebound, placing additional pressure on foreign reserves despite ongoing support from international creditors and aid programs.

External financing options remain limited, with only a small Panda bond expected in 2026, while Pakistan looks to restore credibility and gradually return to international debt markets by 2027.

Exports have also been revised downward, with projections lowered to $31.3 billion against the previously planned $31.7 billion, while imports are forecasted to climb to $57.6 billion, worsening the trade imbalance.

This sobering report sounds a clear call to action: Pakistan must urgently address its agricultural productivity, boost industrial activity, and implement bold reforms to regain economic momentum. The road ahead is challenging, but with steadfast resolve and patriotic commitment, Pakistan can rise above these trials to secure a prosperous future for its people.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

EUR/USD Slides Toward 1.1300 as Global Bond Rally Offsets EU Trade Optimism

May 28, 2025

Bitcoin Nears $112K as Japan’s Bond Market Crisis Triggers Crypto Rally — Ethereum and XRP Follow Bullish Patterns

May 28, 2025

Gold Prices Tumble Amid Renewed Trade Optimism and Investor Shift to Risk Assets

May 28, 2025

Gold Price Forecast: XAU/USD Holds Firm as Bulls Eye Breakout Amid Mixed Market Signals – May 27, 2025

May 27, 2025

EUR/USD Nears 1.1400 as Tariff Delay Boosts Euro Confidence – May 27, 2025

May 27, 2025

AUD/USD, NZD/USD, USD/JPY Weekly Outlook: Risk Trends, RBA Dovish Tone & US Policy Concerns Shape Momentum

May 27, 2025
Leave A Reply Cancel Reply

Top Posts

Should Forex Traders Use Brokers Offering Deposit Bonuses? Is It Really Worth It?

March 6, 20252,715 Views

Pakistan Confident in IMF Bailout Review as Economic Stability Gains Momentum

March 4, 20252,651 Views

Gold Price in Pakistan Today – March 7, 2025 (Morning Update)

March 7, 20252,640 Views
Don't Miss

3 Must-Know Risk Management Strategies for New Crypto Traders

May 31, 2025

Learn 3 proven risk management strategies for crypto trading beginners to reduce losses and protect your investments.

How to Use Pivot Points to Gauge Market Sentiment in Forex Trading

May 31, 2025

How to Use Technical Analysis When Trading Crypto

May 30, 2025

How to Use Pivot Points to Trade Breakouts (Like a Pro)

May 30, 2025
Stay In Touch
  • Facebook
  • YouTube
  • TikTok
  • WhatsApp
  • Twitter
  • Instagram
Latest Reviews
Daily Forex
Facebook X (Twitter) YouTube
  • Home
  • Privacy Policy
  • Terms of use
  • Disclaimer
  • Feedback
Copyright © 2025 DailyForex.pk. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.