IMF sees signs of recovery in Pakistan

The International Monetary Fund (IMF) has stated that conflicts in Sudan, Gaza, Lebanon, Syria and Yemen have caused severe damage to the global economy.

In its Regional Economic Outlook report for the Middle East and Central Asia, the IMF noted a significant projected decline in growth among non-GCC oil exporters in 2025. The report said the ongoing conflicts in Sudan, Gaza, Lebanon, Syria, and Yemen have severely harmed their economies.

The IMF also highlighted signs of economic recovery in Pakistan, with improved agricultural output following recent floods. Among Middle Eastern oil importers, growth is expected to reach 3.4% in 2025.

It said 4 million people have been displaced in Sudan due to a civil war; while over 50,000 and 4,300 people have been respectively killed in Gaza and Lebanon.

According to the report, a 60% economic contraction has been witnessed in Syria while there is a persistent high inflation in Lebanon. It said in Egypt and Jordan, economic growth remains under pressure due to the regional spillover of conflicts.

The report also stated that Pakistan has increased its interest rate by 550 basis points to reduce its fiscal deficit. In total, the public financing needs of Pakistan and the Middle Eastern and North African (MENA) countries are estimated at $263 billion in 2025.