Pakistan’s inflation rate is projected to rise to 9.9% in fiscal year 2026-27, up from 7.1% in the previous fiscal year, while economic growth is expected to remain at 3.5%.
According to the International Monetary Fund’s (IMF) World Economic Outlook, released on Tuesday, Pakistan’s GDP growth forecast is 3.5% for FY27, down from 3.6% in FY26. The country’s current account deficit is projected to reach 1% of GDP, while the unemployment rate is expected to decline to 6.5% from 6.9%.
Globally, the IMF forecasts economic growth of 3.1% in 2026 and 3.4% in 2027, supported by strong investment in artificial intelligence despite energy price pressures arising from the Middle East conflict.
The IMF warned that a prolonged conflict, rising inflation, deteriorating fiscal conditions and uncertainty surrounding AI investment could undermine the global economic outlook. Global inflation is projected to be 4.7% in 2026, then ease to 4.1% in 2027.