Pakistan may not achieve its economic targets in current fiscal year: IMF

E-Paper | March 04, 2026

The International Monetary Fund (IMF) has said that Pakistan may not be able to achieve its economic growth targets set for the current fiscal year, DawnNews reported on Wednesday.

The statement came after IMF representatives concluded their consultations with the finance minister and officials of the finance ministry in Dubai.

Talks pertaining to a three-year loan repayment programme backed by the IMF had kicked off in Dubai on March 28, with Minister of Finance Ishaq Dar leading the Pakistan delegation.

Over the course of the discussions, the IMF urged the finance ministry to continue the reforms promised under an IMF-backed programme in order to achieve economic stability and growth.

It added that the economic growth in the current fiscal year is expected to reach 5 per cent, with the current account deficit expected at 2.9pc.

The IMF further stated that the rate of inflation is expected to be at 4.3pc.

In January, the World Bank had revised Pakistan's growth rate upward to 5.2 per cent for the fiscal year 2017 and 5.5 per cent for 2018.

The bank had previously estimated growth of Gross Domestic Product (GDP) of Pakistan to be 5 per cent and 5.4 per cent, respectively.

The delegation noted that the country has faced several challenges on the international platform as well as in the fields of energy and finance and observed that investment in the China-Pakistan Economic Corridor had improved the country's energy supply.

However, the delegation advised the finance ministry that in addition to increasing its tax revenues, Pakistan would also have to improve its export base to keep on track.

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Pakistan

Tahir Sherani is an Islamabad-based reporter for Dawn News (TV) with 16 years of experience. His coverage focuses on the national economy, energy, cabinet affairs, the Establishment Division, and the Prime Minister’s Office.

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Sajad Raina

Apr 05, 2017 06:46pm

Bravo Advise By IMF

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NOMANSLAND

Apr 05, 2017 07:09pm

Due to influx of Chinese companies, I doubt exports will grow. Even if it does it will benefit China not Pakistan. And then there is foreign debt servicing for loans provided. There will be development in infrastructure for sure but definitely with a huge cost and minor benefits !!

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Bitter truth

Apr 05, 2017 07:23pm

Economic turmoil for those who understand is evident. Since last couple of years: - Exports & Remittances Down. - Imports Increased - with CPEC, it will increase even more. - Circular Debt Increasing. - External & Overall Debt increasing. - One of the Major chunk of Budget is served on Debt servicing. - Whole-Sale Privatization of State / Public owned institution in full swing. One wonders, from where would Govt. generate revenue to repay its debt & revive economy? - obviously by more interest based borrowing & increasing the tax on general public.

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Nomi Goraya

Apr 05, 2017 07:27pm

"It added that the economic growth in the current fiscal year is expected to reach 5 per cent, with the current account deficit expected at 2.9pc." Not at all a bad figure if we see the challenges Pakistan is still facing and compare it with growth rate of recent PAST. For sure lot is needed to be done one of them to is to get rid of huge loss making entities like PSM, PIA etc and total up gradation of POWER DISTRIBUTION SYSTEM of country and to convince masses to pay taxes and utility bills

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Nomi Goraya

Apr 05, 2017 07:43pm

@Bitter truth Sir with all due respect just try to look at all the issues one at a time. Remittance falling little over blown and misplaced fact as till last year they were increasing and they are impacted by the lower Oil prices so it is dynamic thing you can not make any conclusive statement. Imports increasing not bad if it is related to machinery and industry so it not negative at all. Exports falling yeas a negative trend no doubt but it has roots in expensive energy mix of country which rely on imported furnace oil and LNG which makes production cost very high coupled with expensive labor which makes your products more expensive. With the shift on COAL and many COAL based power plants to come online in couple of years this situation will change so future is not that bleak. About the privatization that is modern order of the day where government is just regulator and collect tax and service charges not worried about running the state run enterprises

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Yakub

Apr 06, 2017 01:40am

@Nomi Goraya sir the points you showed cannot be denied but they also hold serious concerns underneath.Firstly if fall in remittance is attributed to oil price then it is a dangerous trend because if most of the remittance comes from middle East whose economic structure is feeble and reliable on non renewable resources then it can tend to fall anytime.Regarding import and export I might agree with you but government is not just a regulator but also an enforcer and finance, which needs to think about every penny of taxpayer that it spends.

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Dadeejee

Apr 06, 2017 01:56am

Five percent GDP growth is not too bad. We urgently need to raise our: (1) exports to pay for (a) our imports and (b) debt servicing. (2) tax revenues. Measured as a percentage of GDP these are among the lowest in the world.

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Hussain

Apr 06, 2017 07:59am

What exports, rice, mangoes etc at the cost of its own people. In London a quality basmati rice is £1.00 a killon(5 kg bag at £5.00). The same or poorer rice in Karachi is rs175.00.

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M. Emad

Apr 06, 2017 08:02am

IMF 2017 updated GDP forecast: Pakistan-5%, Bangladesh-6.9%, India-7.2%.

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Sajjad kamran

Apr 06, 2017 08:53am

Now what do you do, Mr. Dar ? Next general elections are scheduled for next year.

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