Islamabad: Pakistan’s economy has experienced unexpected growth, expanding at a rate faster than anticipated in the last quarter of the previous year. According to a report by Bloomberg, this economic boost is attributed to interest rate cuts and financial support from the International Monetary Fund (IMF).

The latest report from the Pakistan Bureau of Statistics indicates that the country’s Gross Domestic Product (GDP) increased by 1.73 percent in the three months leading up to December. This growth surpasses the 1.5 percent expansion that economists had predicted in a survey conducted by Bloomberg.

Bloomberg’s report highlights the stabilization of Pakistan’s economy over recent months, bolstered by the inflow of IMF funds. Additionally, Pakistani authorities have secured a staff-level agreement with the IMF, resulting in a commitment of $2.3 billion in two separate loans to aid the nation’s economic recovery.

Falling inflation rates have provided the State Bank of Pakistan with the opportunity to significantly lower benchmark interest rates. This monetary policy adjustment is part of a broader strategy to stimulate economic activity.

The State Bank of Pakistan has projected further economic growth, estimating an expansion of between 2.5 percent and 3.5 percent for the fiscal year ending in June 2025.

The agriculture sector, as reported by the Pakistan Bureau of Statistics, showed a 1.1 percent growth in the quarter ending in December, up from 0.74 percent in the previous quarter. Meanwhile, the services sector expanded by 2.57 percent during the same period.