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
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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
South Africa win toss, bat against Pakistan in tri-series
- Both teams lost their opening match against New Zealand and have made changes
- The winning team will face New Zealand in the final scheduled for Friday in Karachi
KARACHI: South Africa won the toss and chose to bat against Pakistan in the third match of the three-nation tournament in Karachi on Wednesday.
South Africa, who lost to New Zealand in their first game, made four changes, with star batter Heinrich Klaasen, Keshav Maharaj, Corbin Bosch and Tony de Zorzi coming into the side.
Pakistan made two changes from their defeat against New Zealand in the first match in Lahore, bringing in Saud Shakeel and Mohammad Hasnain in place of injured Haris Rauf and Kamran Ghulam.
The winner will face New Zealand in the final scheduled for Friday, also in Karachi.
Teams
Pakistan: Mohammad Rizwan (captain), Fakhar Zaman, Babar Azam, Saud Shakeel, Tayyab Tahir, Salman Agha, Khushdil Shah, Shaheen Shah Afridi, Naseem Shah, Mohammad Hasnain, Abrar Ahmed
South Africa: Temba Bavuma (captain), Tony de Zorzi, Matthew Breetzke, Kyle Verreynne, Heinrich Klaasen, Keshav Maharaj, Senuran Muthusamy, Wiaan Mulder, Tabraiz Shamsi, Corbin Bosch, Lungi Ngidi
Umpires: Asif Yaqoob (PAK) and Michael Gough (ENG)
TV Umpire: Richard Illingworth (ENG)
Match referee: David Boon (AUS)
Pakistani, UAE deputy PMs express concern over US proposal to dislocate Palestinians from Gaza
- Trump has announced plans to resettle Palestinian residents and redevelop enclave and said they should not have the right to return
- Palestinian territory, encompassing the Gaza Strip and West Bank, including East Jerusalem, has been occupied by Israel since 1967
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Wednesday spoke to his counterpart in the United Arab Emirates (UAE), Sheikh Abdullah bin Zayed Al Nahyan, and expressed concern about a proposal by US President Donald Trump to displace Palestinians from Gaza, the foreign office in Islamabad said.
Trump has recently announced plans to resettle Gaza’s Palestinian residents and redevelop the enclave and said they should not have the right to return. Under Trump’s scheme, Gaza’s about 2.2 million Palestinians would be resettled and the United States would take control and ownership of the coastal territory, redeveloping it into the “Riviera of the Middle East.” Palestinians fear that Trump’s plan would enforce another Nakba, or Catastrophe, when they experienced mass expulsions in 1948 with the creation of Israel.
“The two leaders discussed the grave humanitarian situation in Gaza and expressed concerns at the proposal to displace or relocate the Palestinian people from their ancestral homeland,” the foreign office said after Dar’s call with his UAE counterpart.
The Pakistani deputy PM reiterated Pakistan’s “unwavering” support for Palestinian rights, and the foreign office said both leaders agreed to stay in close contact to achieve a “just, comprehensive, and lasting solution to the Palestinian issue.”
Israel began its latest assault on Gaza after a Hamas-led attack on Israel on October 7, 2023, that killed about 1,200 people, while some 250 were taken hostage, according to Israeli tallies.
More than 48,000 Palestinians have been killed in Israeli air and ground operations since, Gaza health authorities say, and much of the enclave has been obliterated.
The Gaza war has been paused since Jan. 19 under the ceasefire agreement between Israel and Hamas that was brokered by Qatar and Egypt with support from the United States.
Palestinian territories – encompassing the Gaza Strip and West Bank, including East Jerusalem – have been occupied by Israel since 1967.
Pakistan does not recognize Israel and has consistently called for an independent Palestinian state based on “internationally agreed parameters.”
Pakistan arrests medical officer for falsifying autopsy report in blasphemy case killing
- Dr. Muntazir Mehdi allegedly tried to conceal evidence of torture in Dr. Shahnawaz Kunbhar’s postmortem report
- Dr. Kunbhar was accused of sharing blasphemous content on social media, though he denied the charge
KARACHI: Pakistan’s Federal Investigation Agency (FIA) has arrested a medical officer in Mirpurkhas for allegedly tampering with the autopsy report of a doctor killed in a suspected extrajudicial police shooting after being accused of blasphemy, the agency said on Wednesday.
The arrest is part of an ongoing probe into the killing of Dr. Shahnawaz Kunbhar, a physician who was shot dead in what authorities initially described as a police encounter, but which was later proven by a high-level police inquiry to have been a staged killing while he was in custody.
The FIA said in a statement the police officials implicated in the case were investigated on charges of murder, terrorism and torture.
“The FIA Mirpurkhas has carried out a major operation and arrested medico-legal officer Dr. Muntazir Mehdi,” the agency said in a statement.
“The arrested suspect is accused of concealing evidence of torture in the post-mortem report,” it added. “He was taken into custody in Mirpurkhas, and investigations have begun.”
The statement said further arrests were expected as part of the probe, and all available resources were being used to track down those involved.
Dr. Kunbhar, a government doctor in Sindh’s Umerkot district, was accused of sharing blasphemous content on social media in September 2024, though he denied the charge and said that his account had been hacked.
After facing threats from religious groups, he went into hiding but was later arrested. A day after being taken into custody, police claimed he was killed in an exchange of fire while allegedly trying to escape.
Rights groups and his family dismissed the police version, however, alleging he was tortured and executed in custody. A subsequent inquiry by the Sindh Human Rights Commission found that Kunbhar had been killed in a staged encounter, and his body bore signs of severe torture.
The case sparked protests across Sindh, with civil society and legal activists demanding accountability.
The incident also brought Pakistan’s controversial blasphemy laws under renewed scrutiny, with rights organizations calling for legal reforms to prevent their misuse and protect the accused from vigilante violence.
The FIA said its investigation into police officers involved in the case was ongoing, and efforts to apprehend all those responsible were underway.
Pakistan picks consortium led by Dubai-based firm to advise on power sector privatization
- The consortium will help with the privatization of three power distribution companies in Pakistan
- Pakistan has struggled with power sector challenges, leading to financial losses, revenue shortfalls
ISLAMABAD: Pakistan has signed a financial advisory agreement with a consortium led by Dubai-based Alvarez & Marsal Middle East Limited to help privatize three major power distribution companies (DISCOs), the Privatization Commission said on Tuesday.
The agreement is part of the government’s broader privatization drive to reform the power sector that has been plagued by circular debt, operational inefficiencies and power theft.
The government has been working to divest state-run power companies as part of its wider economic reform agenda, recommended under its $7 billion loan program with the International Monetary Fund.
“This strategic initiative aligns with the government’s commitment to improving efficiency, reducing losses and ensuring long-term sustainability in the power distribution sector,” the Privatization Commission said in a statement.
Alvarez & Marsal Middle East Limited, a professional services firm specializing in business performance improvement and turnaround management, will provide financial advisory services for the privatization of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
It will conduct due diligence, market analysis, investor outreach and transaction structuring to facilitate private sector participation in the bidding process.
Pakistan has long struggled with power sector challenges, with state-run distribution companies suffering massive financial losses due to inefficiencies, revenue shortfalls and delays in tariff adjustments.
The signing ceremony was attended by senior officials from the Privatization Commission and representatives of the A&M-led consortium.
Erdogan due in Islamabad today to co-chair Pakistan-Turkiye cooperation council
- HLSCC has held five sessions since it was established in 2009
- PM Sharif and Erdogan expected to sign several agreements
ISLAMABAD: Turkish President Recep Tayyip Erdogan will arrive in Islamabad today, Wednesday, to co-chair a high-level strategic cooperation council focusing on bilateral trade, investment and other priority sectors, and also oversee the signing of several agreements, the foreign office has said.
The Pakistan-Turkiye High Level Cooperation Council (HLSCC) was established in 2009. Several joint standing committees under the HLSCC cover vital sectors such as trade, investment, banking, finance, culture, tourism, energy, defense, agriculture and others.
Six sessions of the HLSCC have been conducted since it was founded, with the last one held in Islamabad in 2020.
“During the visit, Prime Minister Shehbaz Sharif and President Erdogan will co-chair the 7th Session of the Pakistan-Turkiye High Level Strategic Cooperation Council (HLSCC),” the foreign office said on Tuesday.
“At the conclusion of the Session, a Joint Declaration and a number of important agreements/MoUs are expected to be signed. The two leaders will also address a joint press stakeout.”
Erdogan will hold bilateral meetings with Sharif and President Asif Ali Zardari, the foreign office said, and address the Pakistan-Turkiye Business and Investment Forum, which will bring together leading investors, companies and businesspersons from both sides.
“The visit of Turkish President and the holding of the 7th Session of the HLSCC would serve to further deepen the brotherly relations and enhance multifaceted cooperation between the two countries,” the foreign office said.
Turkiye and Pakistan enjoy cordial relations and last year agreed to enhance bilateral trade to $5 billion when Turkish Foreign Minister Hakan Fidan visited the Pakistani capital.
Pakistan has been eagerly reaching out to international partners and allies in recent months as the South Asian nation, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, navigates a narrow economic recovery path.
