• Upgrades Pakistan’s growth forecast to 3.5pc for FY26 • Growth projected to rise further to 4.5pc in next fiscal year
• Lender says higher oil prices to increase import bill, inflation
• Warns prolonged ME crisis may hit growth, remittances, exports
ISLAMABAD: The Asian Development Bank (ADB) on Friday upgraded Pakistan’s economic growth forecast to 3.5 per cent for the current fiscal year but warned of significant downside risks stemming from global uncertainty, particularly the Middle East crisis.
“Pakistan is expected to sustain its economic performance in the medium term, with real gross domestic product (GDP) growth forecast at 3.5pc in FY2026 and 4.5pc in FY2027, from 3.1pc in FY2025, as manufacturing recovers and investment increases,” the Manila-based lending agency said in its flagship Asian Development Outlook (ADO) April 2026.
