The International Monetary Fund (IMF) projects that Pakistan’s inflation rate, which dropped from 29% to 12.6% this year, will further decline to 10.6% by 2025, according to IMF’s Director for the Middle East and Central Asia, Jihad Azour. In a recent statement on Pakistan’s economic outlook, Azour remarked that Pakistan’s economy is expected to grow at a rate of 3.2% in the 2024-25 fiscal year, an improvement that signals economic recovery. Azour emphasised that Pakistan’s reform package aims to achieve several key objectives, including fiscal stability, increased revenue, and reduced deficits. He highlighted that improvements in tax collection and addressing systemic issues could boost Pakistan’s revenue. He also noted that reforms within state-owned enterprises remain a priority, which could open more opportunities for the private sector, attract foreign investment, and strengthen Pakistan’s export potential. The IMF official further explained that creating a favourable environment for additional investment in Pakistan is essential. Current fiscal policies, he said, are helping reduce inflationary pressures and facilitate capital flows, easing the burden on Pakistan’s current account. Azour expressed optimism that these measures would stabilise the economy, mitigate financial risks, and enhance the energy sector.