The Asian Development Bank (ADB) has lowered its economic growth forecast for Pakistan to 3.7% for the fiscal year 2027, while simultaneously raising its inflation projections.
The revision reflects mounting pressure from elevated energy costs, sluggish remittance inflows, and the broader impact of global conflicts on the country’s macroeconomic stability.
7% growth outlook for the current fiscal year, signaling resilience in Pakistan’s fundamentals.
This marks a shift from the ADB’s previous stance, where it had maintained a 3.7% growth outlook for the current fiscal year, signaling resilience in Pakistan’s fundamentals.
The new forecast for FY2027 suggests that external headwinds are intensifying, with energy prices and remittance volatility emerging as key drag factors on economic expansion.
The downgrade underscores the fragility of Pakistan’s recovery trajectory.
Despite earlier signs of stabilization, the combination of high energy bills and reduced foreign currency inflows from remittances is constraining domestic demand and investment.