Pakistan is grappling with severe economic challenges as the International Monetary Fund (IMF) has downgraded its GDP growth projection for 2025 to 3%, down from an earlier estimate of 3.2%. This adjustment reflects the country's ongoing financial struggles and reliance on external loans, primarily from allies like China and Saudi Arabia, as well as the IMF itself.
The IMF's revised outlook highlights a stark contrast with India's projected economic growth of 6.5%. While India continues to emerge as a significant player on the global stage, Pakistan's economy remains stagnant, burdened by high debt and a lack of sustainable growth strategies. The Asian Development Bank (ADB) has similarly forecasted Pakistan's growth at 3% for the fiscal year 2024-25.
Despite these challenges, both the IMF and ADB maintain a cautiously optimistic view for Pakistan's medium-term economic prospects. The IMF anticipates that Pakistan's GDP growth could reach 4% in 2026 if structural reforms are implemented effectively. However, the current situation underscores the urgent need for comprehensive economic reforms to stabilize and revitalize the nation's economy.