Pakistan’s Foreign Exchange Reserves Expected to Reach $17 Billion Next Fiscal Year: IMF
All Provinces Will Not Provide Any Subsidy on Electricity and Gas; New Gas Price Adjustments Scheduled for July 1, 2025, and February 15, 2026: Report
Islamabad (Web News)
According to a report by the International Monetary Fund (IMF), Pakistan’s foreign exchange reserves are estimated to be $13.921 billion in the current fiscal year, while in the upcoming fiscal year 2025-26, the reserves are expected to reach $17.682 billion. The IMF has released its staff country report on Pakistan.
According to the report, the IMF estimates that Pakistan’s economic growth for the current fiscal year will remain below the government’s set target. The IMF states that while the current fiscal year’s economic growth is expected to be 2.6%, there may be an increase in economic growth during the next fiscal year 2025-26. It is noteworthy that Pakistan had set an economic growth target of 3.6% for the current fiscal year. According to the IMF, economic growth for the next fiscal year is expected to be 3.6%.
The global financial institution has projected a rise in inflation in Pakistan for the next fiscal year compared to the current one. The report states that the average inflation for the current fiscal year is expected to be 5.1%, while the estimate for the next fiscal year is 7.7%. In contrast, average inflation in the previous fiscal year was recorded at 23.4%.
According to the IMF report, unemployment in Pakistan may decline in the next fiscal year. It is estimated that unemployment for the current fiscal year will be 8%, while it is expected to drop to 7.5% in the next fiscal year.
The report states that Pakistan has assured the IMF that electricity and gas prices will be adjusted in a timely manner. Similarly, all provinces have informed the IMF that they will not provide any subsidies on electricity and gas. The report states that quarterly and monthly adjustments by NEPRA (National Electric Power Regulatory Authority) will be implemented on time, and Pakistan has assured the IMF that the annual rebasing of electricity tariffs will be enforced starting July 1, 2025.
According to the IMF, new gas price adjustments will take place on July 1, 2025, and February 15, 2026. The country report further mentions that the circular debt in the power sector will be cleared by the end of the current year. The federal government will borrow PKR 1,252 billion from banks to address the circular debt in the power sector.