IMF's new analysis on Pakistan: improvement in the economy but the risk of inflation

IMF’s new analysis on Pakistan: improvement in the economy but the risk of inflation

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Islamabad: The IMF has said in its latest Regional Economic Outlook report that Pakistan’s economy is expected to grow at a rate of 3.6 percent in the current fiscal year; however, inflationary pressures are likely to increase again.

According to the report, the elimination of electricity subsidies and the usual increase in tariffs may increase expenses, which is likely to burden the common citizens.

The IMF added that if heavy rains or floods occur in the country in 2025, the economy may suffer again, although the severity of their impact cannot be accurately estimated yet.

The report praised the continuation of economic reforms in Pakistan and said that the economy has achieved some stability due to improvements in remittances and the current account in the last fiscal year.

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