Pakistan central bank estimates 2.7% GDP growth last fiscal year

Pakistan central bank estimates 2.7% GDP growth last fiscal year

ISLAMABAD, July 2, 2025 — The State Bank of Pakistan (SBP) has released its latest economic outlook, projecting a 2.7% gross domestic product (GDP) growth rate for the fiscal year 2024-25. This figure is an upgrade from the previous estimate of 2.68% [1].

The SBP's report, which aligns with the International Monetary Fund's (IMF) projection of 2.7% for the same period, reflects the country's economic recovery from the pandemic. The IMF's World Economic Outlook Update for April 2025 had also projected a 2.7% GDP growth rate for Pakistan for the fiscal year 2024-25 [1].

The SBP's projection comes amidst a global economic backdrop characterized by persistent uncertainty and tepid growth. The IMF has forecast global growth at 3% for 2025 and 3.1% for 2026, with headline inflation expected to fall to 4.2% in 2025 and 3.6% in 2026 [1]. However, Pakistan faces unique challenges, including a significant current account deficit, rising inflation, and external imbalances.

The Asian Development Bank (ADB) has also projected Pakistan's GDP growth rate at 3% for FY2026, with a slight upward revision of 0.2% for FY2025 compared to its earlier projection [2]. The ADB attributes Pakistan's economic growth to well-coordinated fiscal and monetary responses to the pandemic, as well as structural reforms.

The SBP's projection underscores the importance of structural reforms and appropriate fiscal and monetary policies in containing inflation and external imbalances. Comprehensive reforms in tax policy and administration are also critical to boosting revenues and funding essential public services.

References:
[1] https://www.brecorder.com/news/40375160
[2] https://www.adb.org/news/structural-reforms-key-accelerating-growth-pakistan-adb