ISLAMABAD: Pakistan’s economy is projected to grow by 3% in 2025, the International Monetary Fund (IMF) said in its World Economic Outlook Update released on Friday, as it painted a picture of a subdued global economy for the year ahead.
The IMF report forecasts global growth to remain modest at 3.3% in both 2025 and 2026, with advanced economies expected to see slower growth, while emerging markets, including Pakistan, poised to face a mixed recovery trajectory.
It warns of heightened economic policy uncertainty, particularly on trade and fiscal fronts, while mentioning that political instability in parts of Asia and Europe has rattled markets.
The report also cites geopolitical tensions in regions like the Middle East as a significant global challenge.
“Global growth is expected to remain stable, albeit lackluster. At 3.3 percent in both 2025 and 2026, the forecasts for growth are below the historical (2000–19) average of 3.7 percent,” the IMF said.
It noted in tabulated form that Pakistan’s GDP is expected to grow from 2.5% in 2024 to 3.0% in 2025 and 4.0% in 2026, signaling a gradual recovery after a challenging period.
The IMF’s cautious global outlook reflected structural issues and external shocks that pose risks to different world economies.
Elevated policy uncertainty, fiscal imbalances and inflationary pressures have traditionally been significant concerns for Pakistan. Additionally, global financial tightening and geopolitical tensions have further strained Pakistan’s economy in the past since it heavily relies on imports and external funding.
However, the government has been implementing structural reforms in key areas like taxation, governance and energy management, aiming to improve long-term growth prospects.
Finance Minister Muhammad Aurangzeb has consistently emphasized the importance of adhering to IMF-mandated reforms under the $7 billion loan agreement signed last year. In September, he said that “our hand has been forced as a country” to take stringent measures to put the economy back on track.
The IMF report, based on the assumption of policy continuity, reflects a cautiously optimistic trajectory for Pakistan’s economy in 2025 and beyond.
IMF projects 3% growth for Pakistan in 2025 amid ‘lackluster’ global outlook
https://arab.news/jpv5m
IMF projects 3% growth for Pakistan in 2025 amid ‘lackluster’ global outlook
- IMF’s World Economic Outlook report forecasts global growth to remain modest at 3.3%
- Growth projections for Pakistan in the report signal a gradual recovery after a tough period
From classrooms to screens: Pakistan schools go online amid Middle East war-driven oil crisis
- Government orders school closures, remote work and fuel cuts to conserve energy
- Measures follow oil price surge linked to US-Israeli strikes on Iran and regional tensions
RAWALPINDI: Some schools in Pakistan shifted to online learning this week as authorities introduced emergency fuel-saving measures after global oil prices surged due to the escalating conflict involving the United States, Israel and Iran.
The government has ordered a series of austerity steps aimed at reducing fuel consumption, including temporary school closures, remote work arrangements for a portion of government and private sector employees, and sharp cuts in fuel allocations for official vehicles. The measures were introduced after international oil prices jumped amid fears the widening Middle East conflict could disrupt supplies passing through the Strait of Hormuz, a vital global energy shipping route, raising costs for import-dependent economies such as Pakistan.
Parents in cities including Rawalpindi said many educational institutions had already informed families through social media that classes would be conducted online while campuses remained closed.
“Hopefully, all the schools will remain closed today because many of the institutions have already shared the message on social media that we will be taking classes online for the students,” said Misam Abbas, a 30-year-old father of schoolchildren.
Pakistan’s education system is still recovering from severe disruptions during the COVID-19 pandemic, when schools across the country remained closed for extended periods and millions of students shifted to remote learning.
The closures lasted around 10.5 months in some areas, affecting nearly 40 million school-age children, while limited Internet access and digital devices meant many students could not fully participate in online classes. Education experts say the prolonged shutdowns caused significant learning losses and pushed some children permanently out of the school system. 
Even after the pandemic, schooling in Pakistan has faced repeated interruptions due to environmental and health emergencies. In recent years, dense winter smog, extreme heatwaves and cold spells have frequently forced authorities to suspend classes, sometimes for 10 to 12 days at a time, shortening the academic year and disrupting teaching schedules.
Analysts warn that repeated closures and the shift to online learning, often difficult for students without reliable Internet access, continue to strain an already fragile education system. 
For many families, the sudden switch to remote learning has also raised concerns about prolonged disruptions to education if the austerity measures remain in place.
“They [the government] should not close [schools] for a long time because it suffers a lot. The students… should think that they are to close the school for two to three days, not for all the weeks, not for two to three weeks because that can suffer the studies of these small kids,” Abbas said.
Pakistan imports most of its crude oil and refined petroleum products, making domestic energy costs highly sensitive to global price swings during geopolitical crises.
“Our situation should not be affected by the world’s situation. The world is already in a bad situation. But in our country, we should have some good system so that people cannot be affected by those circumstances,” Abbas said.
