ADB Keeps Pakistan's Growth Outlook Unchanged at 3.7% for Current Fiscal Year, Cites Regional Headwinds. Article Type: news Sourcing Label: documents-data Story Status: null Content Flag: null

The Asian Development Bank (ADB) has kept its economic growth forecast for Pakistan unchanged at 3.7 percent for the current fiscal year. The Manila-based lender also projects inflation to reach 8.3 percent, a figure slightly higher than the government's own estimate.

However, the ADB has revised down its growth outlook for the broader developing Asia and the Pacific region. For 2026, the forecast is now 4.9 percent, a reduction from the previously projected 5.5 percent. This adjustment, a 0.2-percentage-point decrease from April's projections, reflects the significant impact of prolonged disruptions in energy markets, exacerbated by the conflict in the Middle East.

The ADB anticipates that these global energy market pressures will only ease gradually, despite a framework agreement reached in June. The lender has maintained its growth forecast for 2027 at 5.1 percent, expecting economic activity to recover as these pressures subside. The report, released Thursday, indicates that the impact of these disruptions has weighed more heavily on the region's prospects than initially anticipated.