US Edition
Pakistan Trims Growth Forecast Amid Trade Headwinds
- The IMF proposed Pakistan's economic growth targets for fiscal year 2025-26, aiming for 4.4% GDP growth with 4.8% in agriculture and industry sectors.
- The targets follow heightened IMF demands for tougher tax, energy, and climate reforms amid ongoing negotiations under the Extended Fund Facility.
- The IMF called for swift changes to the economic framework, improvements in tax collection, controlled government expenditure, and the implementation of environmental initiatives, while highlighting the risks posed by geopolitical conflicts and external economic shocks.
- On April 2, 2025, the US imposed a 29% tariff on Pakistani goods, raising concerns over fragile balance of payments and potential export declines in textiles and apparel.
- Pakistan's growth forecasts were revised down by about 0.3 percentage points due to trade pressures, with debt sustainability risks remaining high amid fiscal consolidation efforts.
10 Articles
10 Articles
Pakistan Trims Growth Forecast Amid Trade Headwinds
Pakistan’s government lowered its economic growth projection for the fiscal year as global trade disruptions and tighter spending conditions by the International Monetary Fund weighed on the South Asian nation’s economy.
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