Pakistan, Oct. 21 -- The International Monetary Fund (IMF) has warned that recent floods could seriously hurt Pakistan's economy. Growth may slow, inflation may rise, and the current account deficit could widen. These effects follow major flooding during the third quarter of 2025. The IMF shared its findings in its latest Regional Economic Outlook report for the Middle East and Central Asia.

According to the report, Pakistan's GDP growth may fall to 3.6% this fiscal year. This is below the government's target of 4.2%. The IMF blamed the decline on heavy flood damage to agriculture, roads, and homes. These losses will likely reduce income and drive up prices. The report noted that the full impact of the floods is still uncertain.

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