Pakistan GDP to contract 1.3pc in 2026: IMF

The International Monetary Fund expects combined economic output across the Middle East, North Africa and Pakistan to shrink 1.3 percent in 2026, according to its regional outlook reported by Business Recorder. The forecast reflects the Iran war’s effects on energy production, shipping, tourism, trade and business confidence; it is a regional figure, not a separate Pakistan GDP estimate in the cited report.

The IMF projects the region will grow 6.6 percent in 2027, assuming the conflict eases early that year and trade gradually returns to normal. It warned that a longer conflict or additional disruption to energy production could worsen prospects, while noting that oil-importing economies have been relatively more resilient than exporters. The Fund also urged policymakers to protect price stability and fiscal sustainability.