The Asian Development Bank (ADB) has raised Pakistan’s economic growth forecast for FY25 to 2.7 percent, up from its earlier projection of 2.5 percent made in April.
The revision reflects stronger-than-expected performance in the country’s industrial and services sectors, despite anticipated declines in agricultural output.
The ADB, in its latest Asian Development Outlook released Wednesday, maintained its growth estimate for FY26 at 3.0 percent.
Inflation for FY25 has been revised downward due to a faster-than-expected decline in both food and non-food prices during the first 11 months of the fiscal year. The inflation forecast for FY26 remains unchanged.
Pakistan’s revised outlook comes amid a slight downgrade in the broader South Asian region, with regional GDP growth now projected at 5.9 percent in 2025, down from the earlier 6.0 percent forecast.
The ADB cautioned that downside risks remain significant for the region, including the potential escalation of global trade tensions, geopolitical conflicts, and energy supply disruptions that could hamper economic recovery and raise costs.
