IMF Warns of Rising Inflation in Pakistan
Islamabad: The International Monetary Fund (IMF) has warned that inflation in Pakistan is likely to rise again, despite recent improvements in key economic indicators. In its latest assessment, the Fund released Pakistan’s two-year economic performance review along with projections for the ongoing fiscal year. According to the IMF, the country’s inflation rate—recorded at 3.2% in…
Islamabad: The International Monetary Fund (IMF) has warned that inflation in Pakistan is likely to rise again, despite recent improvements in key economic indicators.
In its latest assessment, the Fund released Pakistan’s two-year economic performance review along with projections for the ongoing fiscal year.
According to the IMF, the country’s inflation rate—recorded at 3.2% in June 2025—is expected to climb to between 4.5% and 6.3%, potentially reaching 8.9% by June 2026.
The report notes that Pakistan’s economic growth rate is projected to reach 3.2% during the current fiscal year. Unemployment is expected to decline slightly from 8% to 7.5%, reflecting modest recovery in economic activity.
The IMF further states that Pakistan’s tax-to-GDP ratio is likely to improve, reaching 16.3% in FY2026, provided reforms continue as planned.
