ADB report forecasts Pakistan's GDP growth at 2.5pc, inflation at 6pc
Business
Growth is projected to persist in 2025 and to increase in 2026
ISLAMABAD (Dunya News) – The Asian Development Bank (ADB) on Wednesday published its ‘Asian Development Outlook (ADO) April 2025’ report in which Pakistan’s growth rate is expected to remain steady at 2.5% in the current fiscal year 2025.
“Pakistan’s real gross domestic product (GDP) is expected to grow by 2.5% in FY2025, the same growth rate from FY2024,” it stated.
According to the report, Pakistan’s economy is showing signs of stability and recovery supported by tight macroeconomic policies and progress in economic reforms being implemented by the incumbent government.
“The growth outlook is being helped by a more stable macroeconomic position helped by the IMF Extended Fund Facility arrangement that began in October 2024. Adherence to the economic adjustment program is critical for building resilience and enabling sustainable and inclusive growth,” it further added.
“Pakistan’s economy has benefitted from improved macroeconomic stability through robust reform implementation in areas such as tax policy and energy sector viability,” said ADB Country Director for Pakistan Emma Fan.
“Growth is projected to persist in 2025 and to increase in 2026. Sustained implementation of policy reforms is vital to buttress this growth trajectory and fortify fiscal and external buffers,” it hoped.
“Additionally, strong remittance inflows, lower inflation, and monetary easing are likely to support aggregate demand.
ADB went on to say that the average inflation in Pakistan is projected to decrease significantly to 6% in FY2025 and decline further to 5.8% in FY2026.
“That’s being driven by continued moderation in food inflation, stable global oil and commodity prices, moderate domestic demand conditions, and a favourable base effect,” it said.
