IMF Report: Pakistan Could Gain Up To 6.5% GDP Growth If Reform-Path Followed

On 20 November 2025, the IMF published a diagnostic review of Pakistan’s economy, concluding that by addressing key structural issues — corruption, tax-system complexity, weak oversight of state-owned enterprises (SOEs) and opaque procurement practices — Pakistan could lift its growth rate by 5–6.5 percentage points over five years. The report analyses the Federal Board of Revenue’s loose controls, excessive tax exemptions, weak internal audits and political interference as major deterrents to investment and revenue mobilisation. It also criticised the Special Investment Facilitation Council (SIFC) for lacking transparency. For Pakistan, this analysis holds both promise and pressure: the upside is large, but the reform path is politically and institutionally challenging. Investors may see the potential, but only if the reform signal becomes credible. For policymakers, the report provides a roadmap—but one that requires sustained commitment, cross-institutional coordination and public accountability. In a fragile macro-environment, leveraging this opportunity might define Pakistan’s economic trajectory for the next decade.

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