IMF projects decline in Pakistan’s unemployment rate

NEW YORK: The International Monetary Fund (IMF) on Saturday projected a decline in Pakistan’s unemployment rate from 8 per cent to 7.5 per cent in fiscal year 2025.

The global lender, which approved a $7 billion loan programme for Pakistan earlier this week, projects the country’s GDP growth at 3.2 per cent for FY25, up from 2.4 per cent in the previous fiscal year.

The IMF anticipates that Pakistan’s inflation rate will slow to 9.2 per cent in FY25, a substantial drop from 23.4 per cent in FY24. Additionally, the current account deficit is projected to increase to 0.9 per cent of GDP in FY25, up from 0.2 per cent in FY24, although it will remain moderate.

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The State Bank of Pakistan (SBP) confirmed on Friday that it received the first tranche of $1.03 billion from the IMF which approved a $7 billion loan programme for Pakistan on Wednesday.