ISLAMABAD: The Asian Development Bank (ADB) on Thursday left its forecast for Pakistan’s economic growth unchanged at 3.7 per cent and projected inflation at 8.3pc for the current fiscal year, slightly higher than the government’s estimate.
In its Asian Development Outlook (ADO) July 2026, the Manila-based lender, however, lowered its growth forecast for developing Asia and the Pacific to 4.9pc for 2026 from 5.5pc in 2025, marking a 0.2-percentage-point reduction from its April projections.
Prolonged disruptions to energy markets caused by the Middle East conflict have weighed more heavily on the region’s prospects than anticipated, according to the ADB’s latest economic outlook released on Thursday. The lender maintained its 2027 growth forecast at 5.1pc, reflecting an expected recovery in economic activity as these pressures ease.
The ADB’s outlook expects disruptions to global energy markets to ease only gradually despite a framework agreement signed in June.
With the impact extending beyond energy to fertilisers, other commodity prices and supply chains, inflationary pressures are likely to persist.
