Pakistan, Oct. 13 -- The International Monetary Fund (IMF) has projected Pakistan's economy to grow by 3.5 per cent in fiscal year 2026-27. It also expects inflation to rise to 9.9 per cent, keeping price pressures close to double digits.

In its latest World Economic Outlook, the IMF forecast growth below the government's 4pc target. The projection also falls short of the World Bank's 3.8pc forecast issued last month. Pakistan recorded growth of 3.6pc last year, compared with 3.2pc in fiscal year 2024-25.

The fund expects Pakistan's current account to move from a surplus to a deficit. It projected the deficit at 1pc of gross domestic product in FY27, following a surplus of 0.5pc in FY2025. Inflation is also expected to increase from 7.1...