Pakistan is on track to see a 2.5% economic growth this fiscal year, according to the Asian Development Bank (ADB). This improvement comes after comprehensive reforms helped stabilize the country’s finances following a significant financial crisis. Over the past two years, Pakistan sought assistance from the International Monetary Fund (IMF) while working to improve key economic indicators.
ADB highlighted that continued policy reforms, such as improving tax policies and ensuring stability in the energy sector, have been key to reviving growth. Emma Fan, ADB’s Country Director for Pakistan, emphasized that sustained efforts are still required to protect the economic momentum and strengthen the country’s financial resilience.
The ADB projects that Pakistan’s growth could rise to 3% in the next fiscal year, while inflation rates are expected to decline substantially. It is anticipated that inflation will decline to 5.8% by fiscal year 2026. Despite these improvements, the Bank noted challenges, such as low female participation in the workforce, which remains below regional levels. Resolving this issue could empower women and open up additional financial opportunities.
Pakistan’s government recognizes the need to further promote exports and attract investment in order to sustain its growth trajectory. These measures, along with ongoing policy implementation, are viewed as essential steps toward long-term economic recovery.
