The Asian Development Bank (ADB) has maintained its economic growth forecast for Pakistan at 3.7% for the current fiscal year, signaling that the country’s macroeconomic fundamentals remain resilient despite significant external pressures.

The lender also projected that inflation would continue to ease, reflecting the impact of monetary tightening and stabilizing energy prices.

5% expansion in gross domestic product for fiscal year 2026-27.

The unchanged outlook comes as prolonged disruptions to global energy markets, driven by the ongoing conflict in the Middle East, have weighed more heavily on the region’s economic prospects than initially anticipated.

The ADB noted that these geopolitical tensions have created a volatile backdrop for emerging markets, with Pakistan navigating the balance between import costs and foreign exchange reserves.

This assessment aligns with broader international consensus on Pakistan’s economic path.

The International Monetary Fund recently outlined a stable but cautious growth trajectory for the country, projecting a 3.5% expansion in gross domestic product for fiscal year 2026-27.