Islamabad: Pakistan has informed the International Monetary Fund (IMF) that remittance inflows are projected to reach USD 43 billion during the current fiscal year, providing crucial support to the economy in the wake of recent flood damage.
According to the government’s macroeconomic assessment, the increase in overseas workers’ remittances is expected to help maintain the current account deficit under control, despite setbacks in exports and agriculture. Officials estimate that nearly half of Pakistan’s overseas workforce hails from flood-affected districts in Punjab, which could contribute an additional USD 2 billion in inflows this year.
The IMF’s review noted that despite widespread crop losses, the floods have had minimal impact on tax revenues, while remittances and fiscal measures continue to stabilize the economy. GDP growth is projected at 3.7%–4% for FY2025, reflecting resilience in the face of challenges.
Exports, however, are forecast to decline by USD 1 billion to USD 34.2 billion due to flood-related disruptions in agriculture and industry. Imports are expected to remain high at around USD 65 billion, driven by additional cotton demand and regulatory adjustments.
The IMF has also underscored the importance of progress on governance and anti-corruption reforms, particularly the forthcoming publication of the Governance and Corruption Diagnostic Assessment report.
Meanwhile, inflation is projected to hover around 7%, with authorities confident that strong remittances and a stable exchange rate will help contain price pressures. The Finance Ministry’s outlook stated that Pakistan’s stabilization trajectory remains intact, supported by improvements in large-scale manufacturing and fiscal management.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
