The International Monetary Fund (IMF) has kept its GDP growth projection for Pakistan steady at 3.5% for fiscal year 2025, according to its latest World Economic Outlook (WEO) update.

The report, released on Tuesday, predicts a 2% GDP growth for Pakistan in 2024, followed by a rise to 3.5% in 2025.

This forecast aligns with the IMF’s previous projection for Pakistan made in April 2024. However, it differs from the World Bank’s prediction of 2.3% GDP growth for fiscal year 2024-25, which is lower than the Pakistani government’s target of 3.6%.

The IMF’s global outlook remains relatively stable, with projected growth of 3.2% in 2024 and 3.3% in 2025.

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However, the report highlights concerns about persistent inflation, particularly in services, which is complicating monetary policy normalization and increasing the risk of higher interest rates.

The IMF emphasized the need for careful policy management to balance price stability and growth, particularly in light of rising trade tensions and policy uncertainty.

Despite these challenges, global activity and world trade have shown signs of improvement at the start of the year, driven by strong exports from Asia, especially in the technology sector.