ADB Forecasts Higher Growth for Pakistan Amid Lingering Risks

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ISLAMABAD – The Asian Development Bank (ADB) has released its latest economic outlook for Pakistan, painting a picture of a nation on a slow but steady path to recovery. According to the report issued on Friday, Pakistan’s economic growth is expected to reach 3.5% in the current fiscal year, with a further acceleration to 4.5% projected for the following year.

​While the bank acknowledged that the economic situation is improving, it issued a stern warning that significant risks remain. The report highlights that while the reform process is bearing fruit, the economy remains vulnerable to external shocks. To maintain this momentum, the ADB emphasized the necessity of continued structural reforms and an increase in private sector investment.

Encouragingly, the bank expects a rebound in the construction and industrial sectors to serve as primary pillars for this growth.

ADB Economic Forecast (FY 2026-27)
Metric FY 2026 FY 2027
GDP Growth 3.5% 4.5%
Inflation Rate 6.4% 6.5%
Key Risks: Oil/Gas prices, Middle East tensions, External shocks.

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