The Asian Development Bank (ADB) has released its latest “Asian Development Outlook” report, highlighting important projections and assessments regarding Pakistan’s economy.
According to the report, Pakistan’s economy is on a path of growth in the medium term. The country’s GDP growth is expected to reach 3 percent in fiscal year 2026, with ongoing policy reforms and economic stabilization continuing to support improvement.
The ADB noted that inflation is likely to rise to 6 percent in 2026. The report further stated that an increase in gas tariffs will add to inflationary pressures, though the central bank is expected to adopt a cautious monetary policy to keep inflation under control.
The report also mentioned that under the IMF program, Pakistan has made significant progress in economic reforms. While growth prospects remain positive, structural challenges persist. Incentives announced in the budget for the construction sector will partially help in offsetting potential losses.
The ADB warned that recurring natural disasters and recent floods pose risks to development. Floods could damage infrastructure and agricultural land, putting pressure on growth, while disruptions in supply chains are likely to push food prices higher.
According to the report, consistent reforms and effective policy implementation can sustain economic momentum and confidence. In addition, a trade agreement between the United States and Pakistan in fiscal year 2026 is expected to boost business confidence, improve foreign exchange reserves, and increase investment inflows.
