The World Bank has reported that Pakistan’s economy expanded by 3 percent in the fiscal year 2025, but the growth rate is expected to remain at the same level next year due to the impact of recent floods.
The report, titled “Staying the Course on Growth and Jobs,” stated that the country’s economy grew by 3 percent in the fiscal year ending in June 2025, up from 2.6 percent in the previous year.
Explaining the reasons behind this expansion, the World Bank noted that fiscal discipline and an appropriate monetary policy helped contain inflation and improve both the current account and primary balance amid difficult domestic and global conditions.
The report further stated that improved business confidence supported growth in the industrial and services sectors, though agriculture remained weak due to adverse weather and pest infestations. The World Bank cautioned that although the overall outlook remains positive, the recent floods have negatively affected it, causing damage to people, urban areas, and agricultural lands.
