ADB Revises Pakistan GDP Forecast to 2.7%

Islamabad, July 23, 2025, 07:58 PM PKT — The Asian Development Bank (ADB) has upgraded Pakistan’s GDP growth forecast for FY2025 to 2.7%, reflecting resilient performances in the industrial and services sectors, despite expected agricultural declines, as detailed in the Asian Development Outlook (ADO) July 2025 report, marking a slight upward revision from prior estimates. The provisional 2.7% growth (ended June 30, 2025) contrasts with an unchanged FY2026 forecast, driven by sectoral strength, though agricultural setbacks persist.

The ADB also lowered Pakistan’s FY2025 inflation forecast, citing easing price pressures in food and non-food items over the first 11 months, with the FY2026 outlook stable. Regionally, developing Asia and the Pacific face a growth downgrade to 4.7% for FY2025 (from 4.9%) and 4.6% for FY2026, due to export drops, global trade uncertainties, and weaker demand, worsened by US tariffs, geopolitical risks, and supply chain disruptions. South Asia’s FY2025 growth dips to 5.9%, hit by US trade policies on India and Sri Lanka. Web context shows economic forecast trends, while posts found on X reflect mixed views—some note hope, others question sustainability. Critically, the narrative of “economic resilience” may mask structural weaknesses—web data hints at past overoptimism, and X sentiment suggests distrust in long-term stability, pointing to underlying risks.