The Asian Development Bank (ADB) has stated in its latest report that Pakistan’s economy is showing gradual improvement, but significant risks still remain, requiring continued policy caution.
According to the report, Pakistan’s economic growth is expected to reach around 3.5 percent in the current fiscal year, with projections rising to 4.5 percent in the next fiscal year, indicating a recovery in economic activity.
The ADB noted that ongoing tensions in the Middle East could increase inflationary pressures, with inflation projected at 6.4 percent in fiscal year 2026 and potentially rising to 6.5 percent in fiscal year 2027.
The report highlighted rising oil and gas prices as a major risk to the economy, emphasizing the need to continue reforms to withstand external shocks, while increased private investment could help stabilize growth.
It further added that improvements are expected in the construction and industrial sectors, and a possible easing of the State Bank’s cautious monetary policy could support economic momentum.
