ISLAMABAD In the face of waning inflationary pressures, the International Monetary Fund (IMF) forecasts a 3.2% GDP growth rate for the fiscal year 2025, which should help Pakistan’s economy. It is expected that this growth will have a minor beneficial effect on the unemployment rate.
Ironically, the IMF predicted 4.2% GDP growth through fiscal year 2029, meaning that the low growth trajectory will continue even after the IMF program is finished, which will be 37 months after the current Extended Fund Facility (EFF) expires.
Since the country’s population is growing at a rate of 2.55%, a slightly higher GDP growth rate will not be enough to reduce poverty and create jobs in the medium term.
