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ADB Projects Pakistan's FY2027 Growth at 3.7%, Inflation at 8.3%
The Manila-based lender said reforms, stronger reserves and renewed market access supported the outlook, while expensive energy and external uncertainty remained risks.
- On Wednesday, the Asian Development Bank projected Pakistan's economic growth will remain at 3.7% in fiscal year 2027, warning that higher energy costs and external uncertainty could constrain faster acceleration.
- Economic performance strengthened in FY2026, with GDP growth accelerating to 3.7% from 3.2% in FY2025, supported by broad-based recovery in manufacturing, services, and agriculture.
- Gross international reserves increased from $14.5 billion to $18.5 billion by June 2026, while merchandise trade deficit widened to $33.7 billion from $26.8 billion as imports rose faster than workers' remittances, which grew to $41.6 billion.
- Escalating Middle East tensions threaten to raise energy import costs and disrupt labor markets, according to the ADB, while inflation is projected to reach 8.3% in FY2027, exceeding the State Bank of Pakistan's medium-term target range of 5–7%.
- Sustained implementation of economic reforms and improved external buffers remain critical to supporting future investor confidence, as realizing medium-term potential growth depends on consistent structural reforms in taxation, energy, and state-owned enterprises.
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Islamabad Post
Islamabad PostADB maintains Pakistan's GDP forecast at 3.7%, warns of expensive energy risks
Reforms, stronger reserves backing economic outlook: ADB.ADB head says risks growing for developing Asia, Pacific region.Middle East conflict slowed economic activity in Pakistan: ADB.ISLAMABAD: The Asian Development Bank has forecast...
·Karachi, Pakistan
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ADB sees Pakistan growth holding at 3.7%, warns Middle East conflict could raise costs
F.P. Report KARACHI: Pakistan’s economy is expected to grow 3.7% in the fiscal year ending June 2027, matching last year’s pace, the Asian Development Bank said on Wednesday, warning that the war involving the United States and Iran and the wider Middle East could worsen inflation. The conflict began with US and Israeli strikes on […]
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