ISLAMABAD: The International Monetary Fund (IMF) lowered Pakistan’s growth forecast to just 2.6% for the current fiscal year.

The IMF released an update to its World Economic Outlook, in which the IMF has further reduced Pakistan economic growth rate estimate for the current this year.

The IMF has lowered Pakistani’s economic growth forecast from 3% to 2.6%. The IMF has also projected a decline in Pakistan’s economic growth rate for the next year.

According to the IMF’s world economic outlook report, in January 2025, the IMF was estimated 3% Pakistan’s economic growth rate for this current year.

In October 2025, the IMF was estimated 3.2% Pakistan’s economic growth rate for this year, there is a fear that Pakistan’s economic growth rate target will not be achieved on this year.

In its latest update, the IMF slashed the growth estimate to 2.6pc for the current fiscal year and 3.6 for the next fiscal year. It also put the inflation estimate at 5.1pc and 7.7pc for the current and next fiscal years.

Earlier, Federal Minister for Finance Senator Muhammad Aurangzeb discussed economic stability, reforms, investment opportunities, climate challenges, and trade during a series of high-level meetings in Washington.

The finance minister is in Washington for the annual spring meetings of the International Monetary Fund (IMF) and the World Bank.

The minister participated in the G-24 Finance Ministers and Central Bank Governors’ meeting and as the Second Vice Chair of the group, he highlighted Pakistan’s macroeconomic stability, achieved through resilient banking systems and sustained structural reforms.

He emphasized the need to stay the course on reforms amidst global economic challenges, including geopolitical dynamics, trade fragmentation, and protectionism.