IMF forecasts 3.5pc growth rate for FY27

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ISLAMABAD: The International Monetary Fund (IMF) has projected Pakistan’s economy to grow by 3.5 percent in fiscal year 2026-27, falling 0.5 percentage points short of the government’s 4 percent growth target. In its latest World Economic Outlook (WEO) Update, released on Wednesday, the IMF also maintained its 3.6 percent GDP growth forecast for fiscal year 2025-26. The updated projections show no change in the IMF’s forecast for Pakistan compared to its April 2026 WEO estimates. READ MORE: Inflation projection raised to 8.4pc: IMF lowers growth forecast to 3.5pc The IMF’s data show Pakistan’s economy expanded by 3.2 percent in 2025 and 3.6 percent in 2026 before easing to 3.5 percent in 2027. The Fund report noted that global growth is projected at 3.0 percent for 2026 and 3.4 percent for 2027, broadly unchanged cumulatively from the April 2026 World Economic Outlook. The outlook is uneven: The war shock is weighing on energy importers and vulnerable economies, while AI-driven demand is lifting countries integrated into the global technology value chain. Global disinflation has stalled. Risks are more balanced than in April, but downside risks from renewed conflict and financial market re-pricing persist. Policymakers should preserve price stability, rebuild fiscal space, and strengthen adaptability, it added. Copyright Business Recorder, 2026