IMF

India’s economic outlook has been revised downward by major global financial institutions, signaling growing concern over the country’s near-term fiscal trajectory. The World Bank now estimates India’s GDP growth for FY25/26 at 6.3%, down from its earlier projection of 6.7%, citing weaker-than-expected private and public investment as key factors. Similarly, the International Monetary Fund (IMF) has trimmed its growth forecast to 6.2%.

The International Monetary Fund (IMF) has urged Pakistan to exclude Rs 1.1 trillion worth of provincially-mandated development projects from the federal development budget. This move is part of a broader effort to enhance fiscal discipline and ensure that provincial governments take full responsibility for their development initiatives, in line with the 18th amendment of Pakistan's constitution. The IMF's push aims to streamline federal expenditures and bolster provincial autonomy, as Pakistan continues to negotiate crucial economic reforms under its ongoing IMF loan program.

The International Monetary Fund (IMF) has revised its growth forecast for India, projecting a rate of 6.2% for 2025-26, down from the previously estimated 6.5%. This downward revision is attributed to escalating trade tensions and global uncertainties. Despite the slower-than-expected global recovery, India's economic outlook remains relatively stable, bolstered by private consumption, particularly in rural areas. However, the global growth forecast has also been lowered, with significant slowdowns expected in advanced economies and emerging markets, including China.

In March 2025, Pakistan received a record USD 4.1 billion in remittances, marking the highest monthly inflow in the country's history. This significant surge, a 37% increase year-on-year, offers crucial support to Pakistan’s foreign exchange reserves and broader economic stability. The State Bank of Pakistan (SBP) confirmed that the growth in remittances is a vital factor in easing the nation’s liquidity pressures. However, despite the positive inflows, Pakistan’s GDP growth for FY25 is expected to remain subdued at around 3%, primarily due to a decrease in agricultural output.

Sri Lanka’s fragile post-crisis recovery is facing renewed pressure from external shocks, as aggressive trade tariffs imposed by the Trump administration threaten to derail momentum. The International Monetary Fund (IMF), concluding its recent staff visit, acknowledged the country’s impressive 5% rebound in growth for 2024 and noted substantial fiscal reforms and falling inflation. However, the 44% tariff on Sri Lankan exports to the United States, particularly apparel, casts a shadow over the sustainability of this progress.