The IMF has also acknowledged the continuation of economic reforms and financial improvement in Pakistan in its report.
The International Monetary Fund (IMF) has expressed its concern that the recent floods in Pakistan will have a negative impact on the economy.
Islamabad
The IMF has warned in the Middle East and Central Asia Regional Economic Outlook report that the recent severe flood disasters in Pakistan are likely to disrupt the balance of economic indicators.
The IMF said that economic growth, inflation and current account balance may deteriorate due to the floods. This year, the economic growth rate will be 3.6 percent compared to the target of 4.2 percent, and inflation will also increase again.
The report said that due to severe floods in the third quarter of 2025, economic growth, inflation, and current account may be affected more than expected. The severity of these negative effects of the floods is still uncertain, but as a result of the continuation of economic policies, the economic growth rate will increase to 4.5% in the next five years, i.e. by 2030.
The IMF said that inflation is also likely to increase again this year, and the elimination of electricity subsidies and normalization of tariffs will also increase pressure.
In its report, the IMF also acknowledged the continuation of economic reforms and financial improvement in Pakistan.
