ADB estimates augmenting the GDP of Pakistan by 2.5% in 2025

ADB predicts that Pakistan’s economy will grow by 2.5% in 2025.

The economy of Pakistan is gradually coming back on track. The Asian Development Bank (ADB) projects that the economy of the country would grow at 2.5% during the fiscal year 2025-same rate as last year. This is likely to increase further and reach 3% by the year 2026-bettered by a more stable economic environment.

According to the ADB  this recovery is being by reforms along with the financial support from the IMF’s Extended Fund Facility (EFF), which commenced in October 2024.

What’s Giving the Economy a Boost?

• Private investment is gathering momentum on the wings of confidence engendered through reforms, ushering in a steady currency.
• The expected growth in the industrial and service sectors will be due to the declining interest rates and low inflation.
• With overseas remittances and falling inflation, and better management of the economy, people will have more purchasing power.

Pakistan’s GDP growth is expected to stay at 2.5% in FY2025, rising to 3.0% in FY2026, supported by reforms and private sector investment. The ADB also stresses the need to boost female labor force participation.#capitaltv pic.twitter.com/jeFFlfyGEo

— Capital TV (@CapitalTVLive) April 9, 2025

Inflation is Down

There is good news for inflation: ADB projects average inflation rates to fall to 6% in 2025 and further to 5.8% in 2026. This will be due to:

• Lower food prices
• Stable oil and commodity prices worldwide
• Weakened internal demand
• An easy reference to the higher inflation of last year

Women and Workforce

This report also highlights one of the most significant opportunities for Pakistan in getting women onboard in the economy. Currently, about 90% of women do not participate in the economy more than any other country in the world.

• Invest more in girls’ schools
• Further develop skills training programs
• Make public transportation safer for women