ADB Forecasts Pakistan’s Economy to Grow, Warns of Rising Inflation

Islamabad,— Pakistan’s economy is expected to record modest growth in the upcoming fiscal year despite inflationary pressures, the Asian Development Bank (ADB) said in its latest outlook report.

According to the forecast, Pakistan’s GDP growth is projected at 3 percent in fiscal year 2026, supported by gradual economic reforms and improved external financing. However, the report warned that inflation could climb to 6 percent next year, driven by higher energy prices, food costs, and currency pressures.

The ADB noted that while structural reforms and fiscal discipline are slowly stabilizing the economy, vulnerabilities remain, particularly in public debt, revenue generation, and climate-related risks.

The Bank emphasized that sustained reforms, investment in infrastructure, and regional trade integration are key to placing Pakistan on a stronger growth trajectory in the medium term.