The Asian Development Bank (ADB) has released its Asian Development Outlook report for the current fiscal year 2025-26. In the report, the ADB maintained Pakistan’s Gross Domestic Product (GDP) growth forecast at 3 percent for the ongoing fiscal year. The report also indicated that both inflation and GDP growth are likely to remain below earlier projections. According to the report, GDP growth in July was projected at 3 percent. In contrast, the federal government had anticipated a GDP growth of 4.2 percent for the current fiscal year. The ADB report further noted that Pakistan’s inflation rate is expected to reach 6 percent during this fiscal year. Previously, in its July 2025 report, the ADB had predicted an inflation rate of 5.8 percent. Meanwhile, the federal government has projected the inflation rate at 7.5 percent, but recent floods have disrupted food supply chains, putting additional pressure on prices. In response, the State Bank of Pakistan (SBP) has implemented precautionary measures in its monetary policy to manage the situation. The report said that due to comprehensive economic reforms, Pakistan’s economic condition has become stable. Pakistan is implementing the conditions of the International Monetary Fund, but Pakistan has to take measures to tackle the challenge of climate change. Continuation of policies is essential for economic growth. The trade accord between Pakistan and USA will also pave the way for strengthening trade activities in the country.
Pakistan’s GDP growth pegged at 3% by ADB for this financial year
