ISLAMABAD: The Asian Development Bank (ADB) has forecasted a 2.5% growth in Pakistan’s gross domestic product (GDP) for fiscal year 2025, citing signs of economic stability and recovery fueled by ongoing structural reforms.
In its Asian Development Outlook (ADO) released Wednesday, the ADB highlighted that Pakistan’s economy is showing encouraging signs of stabilization, with growth expected to strengthen as the impact of tight macroeconomic policies and reform measures begins to take hold.
The report noted that the country’s improved macroeconomic position is supported by the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), initiated in October 2024, which has helped restore investor confidence and fiscal discipline. The ADB projects Pakistan’s GDP growth to reach 3% in FY2026.
The bank emphasized the importance of adhering to the economic reform agenda, especially in areas like tax policy and energy sector restructuring, to build long-term resilience and promote inclusive and sustainable growth.
“Pakistan’s economy has benefited from improved macroeconomic stability through robust reform implementation in areas such as tax policy and energy sector viability,” said Emma Fan, ADB’s Country Director for Pakistan.
She added, “Growth is projected to persist in 2025 and accelerate further in 2026. Sustained implementation of policy reforms is crucial to reinforce this growth path and strengthen both fiscal and external buffers.”
