IMF raises Pakistan’s inflation forecast to 9.9% for FY27

The lender’s revised projections put inflation above the government’s target while economic growth remains below its annual goal

Webdesk

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13 Oct 2026

The International Monetary Fund (IMF) has raised Pakistan’s inflation forecast for FY2026-27 to 9.9% from 8.4%, while maintaining its economic growth projection at 3.5%, according to its latest World Economic Outlook (WEO) released on Tuesday.

The revised inflation forecast exceeds the government’s target of 8.2%, while the growth projection falls short of its 4% target.

The IMF’s latest estimate marks an increase of 1.5 percentage points from its April forecast, which was retained in July.

The lender also raised its projected current account deficit to 1% of gross domestic product (GDP), equivalent to approximately $4.4 billion, around $450 million higher than its previous estimate.

Meanwhile, Finance Minister Muhammad Aurangzeb has expressed confidence that Pakistan’s economy will grow by more than 4% during the fiscal year, telling Reuters that the country should record growth “north of 4%”.

The projections come as Pakistan continues implementing economic stabilisation measures under IMF-supported programmes.