IMF Projects Pakistan Inflation to Reach 9.9% by 2027

The International Monetary Fund projects that Pakistan's inflation rate will surge to 9.9% by 2027, according to its October 2026 World Economic Outlook report. This forecast indicates a steady acceleration from 4.5% in 2025 and 7.1% in 2026.

This inflationary pressure is expected to coincide with a slight moderation in economic growth, which the IMF predicts will dip to 3.5% in 2027 after reaching 3.6% in 2026. The report also forecasts a deterioration in the current account balance, shifting from a 0.5% GDP surplus in 2025 to a 1% deficit by 2027.

While the IMF expects unemployment to decline to 6.5% by 2027, it warns that geopolitical tensions and Middle East conflicts pose risks to energy supplies. Such instability could further drive up costs for energy-importing economies like Pakistan.