KARACHI – Pakistan’s growth forecast has been revised downward to 3 percent by International Monetary Fund inthe latest report.
The global lender revised GDP growth projection for the current year, in report dubbed World Economic Outlook Update: Global Growth – Divergent and Uncertain. The revision speaks of similar move by Asian Development Bank (ADB), which lowered its growth prediction for the country’s fiscal year 2024-25 to 3% from 2.8%.
Lowering inflation and more accommodative monetary policy are said to foster increased private investment and economic activity, but the challenges remain.
Globally, the international financial institution forecasts a growth rate, slightly below the historical average of 3.7pc. While the growth forecast for 2025 remains largely unchanged, the lender noted that this is due to an upward revision in the US economy offsetting slower growth projections for other major economies.
The report also mentioned decline in global inflation in 2025 and further to 3.5pc by 2026. IMF cautioned that despite global efforts to curb inflation, progress has stalled in some regions, with elevated inflation still persistent in certain countries.
IMF highlighted growing economic policy uncertainty, especially with potential policy shifts under newly elected governments and political instability in some Asian and European countries.
Currency Exchange Rates in Pakistan’s Open Market – 18 January 2025
