ISLAMABAD: The Asian Development Bank (ADB) on Thursday cut its forecast for Pakistan’s economic growth to 3.7 per cent, citing higher energy costs and anticipated pressure on foreign remittances from overseas Pakistanis.
In its Asian Development Outlook (ADO), 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.
“Preliminary data shows Pakistan’s economy growing by 3.7pc in FY26, which ended June 30, supported by strong industry and services alongside modest agricultural gains. However, the growth forecast is revised down to 3.7pc for FY27 due to higher energy costs and pressure on remittances,” said the Asian Development Outlook July 2026.
The ADB had earlier projected a 4.5pc growth rate for the current fiscal year in its April 2026 forecast.
Lowers projection to 3.7pc for FY27 on higher energy costs
