ISLAMABAD: The International Monetary Fund (IMF) has warned that ongoing conflicts in several Middle Eastern and African nations are severely undermining regional economies, while noting early signs of economic recovery in Pakistan.
In its latest Regional Economic Outlook report for the Middle East and Central Asia, the IMF cited wars and civil unrest in Sudan, Gaza, Lebanon, Syria, and Yemen as major contributors to declining growth, especially among non-Gulf Cooperation Council (GCC) oil exporters.
The report reveals that conflict-driven disruptions have displaced millions and devastated economic activity in the affected countries. In Sudan alone, over four million people have been forced from their homes due to civil war. Meanwhile, Gaza and Lebanon have recorded more than 50,000 and 4,300 deaths respectively, due to continued violence.
Syria’s economy has contracted by a staggering 60%, and Lebanon continues to battle persistently high inflation, the report said. In Egypt and Jordan, growth remains under strain from spillover effects of the regional instability.
Despite these challenges in the region, the IMF noted encouraging developments in Pakistan’s economy. The country has shown signs of recovery, with a rebound in agricultural output following devastating floods in previous years. The report forecasts a growth rate of 3.4% for Middle Eastern oil-importing countries in 2025, a group that includes Pakistan.
In a bid to control its fiscal deficit and inflation, Pakistan has raised its interest rate by 550 basis points in recent months. The IMF report estimated that the total public financing needs for Pakistan and countries in the Middle East and North Africa (MENA) will reach approximately $263 billion in 2025.
The IMF emphasized the need for sustained reform and regional stability to ensure inclusive growth and macroeconomic resilience across the region.
