IMF News

A report in The News Pakistan highlighted that the country’s debt and liabilities have increased from around Rs 55 trillion four years ago to Rs 85 trillion at present -- an overall jump of nearly 55 per cent. 

The report from Aljazeera said soaring global oil costs have hit Pakistan particularly hard because the country is heavily dependent on imported energy and remittances from Gulf states, along with an "already precarious balance-of-payments position." 

America's economy is now larger than China, Germany, and Japan combined. Not slightly larger. Larger by a meaningful margin. China, the world's second-largest economy, sits at approximately USD 20.9 trillion. Germany comes in at around USD 4.7 trillion. Japan at roughly USD 4.4 trillion. Add all three together and you get approximately USD 30 trillion — still short of the United States on its own.  

Argentina is facing a historic economic crisis, leading the world with over USD 60 billion in IMF debt—nearly four times more than any other nation. As of April 2026, the IMF’s top ten borrowers, including war-torn Ukraine and fiscally strained Pakistan, owe a combined USD 128 billion. These massive loans highlight a global struggle with inflation and instability, as countries accept strict reforms only when all other financial options disappear.

The IMF has said the duration and intensity of the shock will determine its broader impact on the world economy.

Kristalina Georgieva, Managing Director of the IMF, said the scale and duration of the disruption would determine the long-term fallout, but cautioned that the effects are already widespread.      

The International Monetary Fund (IMF) has already raised India’s economic growth projection for 2025 by 0.7 percentage points to 7.3 per cent. 

After a long period marked by twin deficits, currency instability and falling foreign exchange reserves, even a small primary surplus is being seen as a sign of improved fiscal discipline.

Seventy million people are now officially below the poverty line Pakistan, a report has showed.

In September 2024, the IMF approved a USD 7bn Extended Fund Facility aimed at restoring macroeconomic stability and rebuilding policy credibility. To date, Pakistan has received roughly USD 3.3bn under the programme. 

The International Monetary Fund  (IMF) has trimmed Pakistan’s FY2025 GDP growth outlook to 3% from 3.2%, a concern for its fast-growing population.

These are accompanied by fiscal profligacy as seen in the government’s inability to contain needless expenditures and raise sufficient revenues to keep its debt at sustainable levels, according to an article by former Deputy Governor of the State Bank of Pakistan, Riaz Riazuddin.

Sharif's acknowledgement of "begging" for loans shows the Pakistan's economic struggles and dependence on international assistance.

In its World Economic Outlook Update, the IMF said the upward revision reflects a “better-than-expected outturn in the third quarter of the year and strong momentum in the fourth quarter,” underscoring India’s position as one of the fastest-growing major economies in the world.

The sharp rise in inflation in Pakistan has come at a time when International prices have shown a visible downward tendency.

The report in Business Recorder by Shahid Sattar reveals that Pakistan suffers from a chronic twin deficit: a fiscal gap (spending more than it collects) and a balance of payments crisis (consuming more foreign exchange than it earns).

The Public Sector Development Programme (PSDP), meant to channel resources into growth-enhancing infrastructure, has become a graveyard of unfinished projects. The IMF notes a "large overhang of ongoing projects" with a combined estimated cost of Rs 10.7 trillion. 

Minister of State for Finance Pankaj Chaudhary told the Lok Sabha, in a written reply to a question, that this fact has been highlighted in the IMF’s report on ‘Growing Retail Digital Payments (The Value of Interoperability)’ dated June 2025.

This follows a sharper decline of USD 4.472 billion in the previous week, reflecting continued pressure on the forex kitty over recent weeks.  

IMF’s October 2025 data reveals Japan and Singapore among the world’s top debt-heavy nations, while the United States ranks eighth. China and India stay below global averages but face rising fiscal strain.

The report highlights that recent policy steps, including GST rate rationalisation, are likely to maintain inflation at moderate levels while supporting consumption demand. 

The IMF now expects the economy to grow at 6.6 per cent, while the RBI projects a slightly higher 6.8 per cent.