The Asian Development Bank (ADB) has forecast Pakistan’s GDP growth at 3% for 2025-26, citing gradual improvement under IMF-backed reforms. However, inflation, structural issues, and climate risks remain key hurdles.
According to the ADB, the government aims for 4.2% growth this year, but recurring floods and natural disasters could slow progress by damaging agriculture and supply chains.
The bank also expects foreign reserves and investment inflows to recover gradually if reforms stay on track.
Inflation is projected to average 6% due to higher energy costs, food prices, and flood-related disruptions. To manage this, the State Bank is likely to maintain a cautious monetary policy balancing inflation control with growth.
Read More: ADB to Scale Up Infrastructure Investments in Pakistan
Despite positive signals, the Asian Development Bank (ADB) stresses that Pakistan still faces import dependence, fiscal constraints, and climate vulnerability. Consistent reforms, new trade agreements, and construction incentives may help sustain momentum and attract investment.
