ADB Forecasts 3% GDP Growth For Pakistan In FY2025-26

Abdullah Hussain (@Abdulla99267510) Published September 30, 2025 | 12:52 PM

The Asian Development Bank projects Pakistan’s economy to grow by 3% next fiscal year, warning inflation may rise to 6% amid supply chain issues and higher gas tariffs.

ISLAMABAD: (UrduPoint/UrduPoint / UrduPoint / Pakistan Point News-Sept 30, 2025) The Asian Development Bank (ADB) has projected Pakistan’s GDP growth rate at 3% for the fiscal year 2025-26, citing signs of economic improvement compared to the previous year.

According to the report, Pakistan’s economy showed better performance in FY2024-25, supported by reforms under the IMF program and renewed investor confidence following the Pakistan-U.S. trade agreement. However, the ADB emphasized that sustained reforms and consistent policy implementation remain essential.

The report noted that recent floods caused damage to infrastructure and agricultural land, but budgetary incentives for the construction sector in 2026 will aid recovery efforts.

The ADB also forecast inflation to rise to 6% in FY2026, driven by supply chain disruptions and an increase in gas tariffs. It recommended that the State Bank of Pakistan adopt cautious monetary policies to keep inflation under control.