Islamabad: The International Monetary Fund (IMF) has expressed fears that the inflation rate in Pakistan will increase further in the current fiscal year.
The IMF has released the World Economic Outlook 2026 in which the IMF fears an increase in inflation in Pakistan in the current fiscal year. According to the IMF, the inflation rate in Pakistan was recorded at 7.1 percent in the last fiscal year, while inflation in Pakistan is estimated to reach 9.9 percent in the current fiscal year.
According to the IMF, Pakistan’s economic growth will be 3.5 percent this year, which was 3.6 percent in the last fiscal year, while Pakistan’s current account deficit in the fiscal year will be one percent of GDP, and the unemployment rate will be 6.5 percent in the current fiscal year.
The International Monetary Fund says that the global growth rate was 3.5 percent in 2025, which is expected to be 3.1 percent in 2026, and global economic growth will be 3.4 percent in 2027.
According to the IMF’s global economic outlook, the Middle East war will push inflation to 4.7% in 2026. The global economy is divided into two parts. Countries involved in the AI sector or exporting energy are performing better. Countries importing energy and outside the technology race are facing inflation, import bills and fiscal pressures.
According to the IMF, despite flexibility in supply chains and the replacement of oil production by alternative sources, energy reserves are decreasing. Oil prices can rise sharply in the event of a geopolitical crisis.
The fiscal space for governments has been limited due to high levels of public debt and interest rates. There is a need for medium-term stability, deficit control and targeted relief for the most vulnerable.
