IMF keeps growth forecast low at 3.5%

The International Monetary Fund (IMF) on Wednesday kept Pakistan's economic growth forecast unchanged at 3.5% for the new fiscal year, while warning about the possibility of a renewed Middle East conflict that could heighten price volatility. In an update to its World Economic Outlook (WEO) report, the IMF showed Pakistan's economic growth rate at 3.5%, with no change in the outlook compared to its last two reports since April this year. The report suggests that Pakistan's economy will marginally slow down in the new fiscal year compared to the estimated 3.7% growth achieved in the previous fiscal year. The government has set a growth target of 4% for FY2026-27, which is even lower than the 6% rate needed to create 4.5 million jobs annually to reduce high poverty and unemployment. Prime Minister Shehbaz Sharif''s two terms since 2022 have failed to create enabling conditions for economic...