Economy
IMF sees region including Pakistan shrinking 1.3pc this year due to Iran war
The IMF expects output in the Middle East, North Africa and Pakistan region to contract 1.3pc in 2026 because of the Iran war, then rebound 6.6pc in 2027.
IMF
IMF: 14 The Indus Compass stories. Latest: IMF sees region including Pakistan shrinking 1.3pc this year due to Iran war. Key developments, background and…
14 stories on IMF since 28 September 2026; the latest was published on 22 October 2026.
Key developments
- IMF sees region including Pakistan shrinking 1.3pc this year due to Iran warThe IMF forecasts the Middle East, North Africa and Pakistan region's output will contract 1.3pc this year because of the US-Israeli war on Iran.
- PM approves 1% sales tax on electric cars in new five-year auto policyThe draft policy cuts sales tax to 1% on battery EVs, 6% on range-extended EVs and 9% on plug-in hybrids, subject to IMF approval.
- IMF urges Pakistan to look beyond fiscal targets to boost growthIMF Middle East and Central Asia director Jihad Azour said Pakistan's fiscal policy must do more than meet primary balance targets.
- Pakistan to chair World Bank and IMF boards in 2027, first time since 1953Pakistan will chair the World Bank and IMF Boards of Governors in 2027, the first time since 1953.
- IMF says India will pass Japan as fourth-largest economy in 2027The IMF projects India's GDP at $4.52 trillion in 2027, ahead of Japan, and warns Gulf economies will not return to their pre-war path soon after the Iran war.
Economy
PM approves 1% sales tax on electric cars in new five-year auto policy
PM Shehbaz approved a 1% sales tax on battery EVs and lower import duties in the 2026-31 auto policy, with a levy on petrol cars; the IMF must approve first.
Economy
IMF urges Pakistan to look beyond fiscal targets to boost growth
IMF director Jihad Azour said Pakistan's fiscal policy must go beyond primary balance targets to fund investment, as Zardari pledged more reforms.
Economy
Pakistan to chair World Bank and IMF boards in 2027, first time since 1953
Economic Affairs Minister Ahad Cheema was named incoming chair of the World Bank and IMF Boards of Governors for 2027, Pakistan's first time since 1953.
Economy
IMF says India will pass Japan as fourth-largest economy in 2027
The IMF projects India's GDP at $4.52 trillion in 2027, ahead of Japan, and warns Gulf economies will not return to their pre-war path soon after the Iran war.
Economy
Aurangzeb outlines targeted fuel subsidies to IMF deputy chief
Finance Minister Aurangzeb discussed targeted fuel subsidies with IMF deputy chief Nigel Clarke in Bangkok, and US trade, Reko Diq and minerals with a US envoy.
Economy
IMF raises Pakistan's inflation forecast to 9.9pc, keeps growth at 3.5pc
The IMF raised its forecast for Pakistan's inflation this fiscal year to 9.9pc from 8.4pc and kept growth at 3.5pc, below the government's 4pc target.
Economy
Pakistan aims to raise over $1bn by selling five or six state firms
Finance Minister Aurangzeb said five or six state firms could be sold this fiscal year for over $1bn, and growth should top 4pc despite high oil prices.
Technology
IMF says AI could offset Asia's shrinking workforce
The IMF said AI could add up to a point of growth in ageing Asian economies, as Bill Gates warned of AI cyberattacks and Brad Smith urged regulation.
Economy
Pakistan and IMF reach staff-level deal for $1.2bn tranche
The IMF reached a staff-level agreement on Pakistan's fourth EFF review and third RSF review, clearing the way for about $1.2bn once its board approves.
Markets
PSX jumps over 1,600 points as IMF talks lift mood
The KSE-100 rose 1,610.96 points to 171,211.36 as hopes for Pakistan's IMF review lifted investors, a day after the index slipped below 170,000.
Economy
Aurangzeb opens formal talks with IMF mission as Pakistan seeks next $1.2bn
Finance Minister Muhammad Aurangzeb held a kick-off meeting with the IMF mission reviewing Pakistan's $7bn loan, with about $1.2bn at stake by early November.
Economy
Government notifies new public procurement rules as IMF mission holds talks in Islamabad
The Public Procurement Rules 2026 replace the 2004 rules, make the e-PADS system mandatory and add blacklisting and appeals, as IMF talks on $1.2bn continue.