PIDE Warns Pakistan Economy Faces Severe Risk from Strait of Hormuz Disruptions
A study by the Pakistan Institute of Development Economics reveals that a disruption in the Strait of Hormuz could drive Pakistan’s inflation above 12% and destabilize external accounts.
Pakistan Sees 762,000 Citizens Migrate Abroad in 2025, Remittances Support Economy
Over 762,000 Pakistanis migrated abroad in 2025, with remittances reaching $19.7 billion, becoming the largest source of foreign inflows and helping stabilize Pakistan’s economy amid declining FDI and exports.
SBP Keeps Policy Rate Unchanged at 10.5%, Projects Up to 4.75% GDP Growth in FY26
State Bank of Pakistan keeps policy rate at 10.5% in January 2026 MPC meeting, citing improving growth outlook, easing inflation and containing external pressures.
Pakistan’s GDP to Grow 3% in FY2025–26 Amid Flood Recovery, World Bank Report
The World Bank projects Pakistan’s GDP growth at 3% in FY2025–26, rising to 3.4% in FY2026–27, driven by agricultural recovery and reconstruction post-floods, while warning of widening current account deficit and trade vulnerabilities.
IMF Warns Pakistan’s FY26 Growth Remains Fragile Without Uninterrupted Reforms
The IMF says Pakistan’s FY26 outlook remains fragile after monsoon floods, projecting slower growth, higher inflation, and current account pressure unless reforms under the $7 billion programme continue.
Pakistan Records $594 Million Current Account Deficit in Q1 FY26 Despite September Surplus
Pakistan posted a current account deficit of $594 million in the first quarter of FY26 despite achieving a surplus in September, reflecting ongoing trade imbalances alongside stronger remittances and export growth.
SBP Projects 3.25% GDP Growth for FY26 Amid Inflation and Structural Challenges
The SBP projects Pakistan’s GDP growth at 3.25% for FY26 while warning of inflation above 7% in H2. The report highlights structural weaknesses, fiscal and external pressures, and the need for reforms to sustain macroeconomic stability and private investment.
IMF Lowers Pakistan GDP Growth Projection to 3.6% Against Government’s 4.2% Target
The IMF has projected Pakistan’s GDP growth for 2025-26 at 3.6%, below the government’s 4.2% target, citing evolving economic conditions and global uncertainties. The forecast does not yet reflect the impact of recent monsoon floods.
Pakistan’s External Account Shows Improvement with Strong Export and Remittance Growth
Pakistan’s external account deficit narrowed in July FY2026 compared to last year, supported by higher exports, rising remittances, and stronger IT inflows, despite an expanding trade deficit due to higher imports of petroleum and food products.
State Bank Reports Economic Stabilization but Flags Risks Amid Global Uncertainty
The State Bank of Pakistan’s latest Monetary Policy Report signals economic stabilization following years of turbulence, but warns of persistent global and domestic risks that require sustained policy discipline and structural reforms.