IMF lowers Pakistan’s growth forecast to 2pc
Despite an improved global outlook, the International Monetary Fund (IMF) on Tuesday lowered Pakistan’s economic growth forecast to two per cent for the current fiscal year, down 0.5 percentage points from its October estimate of 2.5pc. In its latest World Economic Outlook (WEO) report released on Tuesday, the Washington-based global lender also slightly revised downward (by 0.1pc) the next fiscal year’s growth forecast to 3.5pc. The revised growth estimates are based on the Fund’s recent detailed quarterly review of Pakistan’s macroeconomic position as part of the ongoing $3bn Standby Arrangement (SBA), which is set to expire in March. The IMF’s growth forecast is significantly lower than the government’s 3.5pc GDP growth target for the current year but generally in line with the State Bank of Pakistan’s expectation of 2pc to 3pc announced a day earlier as part of the monetary policy statement. In the WEO report, the IMF also raised the global growth rate for 2024 to 3.1pc, 0.2pc higher than its October forecast of 2.9pc, citing greater than expected resilience in both the United States and China, besides many other large emerging market and developing economies.