The Asian Development Bank has kept Pakistan’s economic growth forecast for fiscal year 2027 at 3.7% and projects average inflation of 8.3% over the same period.
ADB’s latest Asian Development Outlook update says Pakistan’s economy grew by about 3.7% in FY2026, supported by stronger industry and services. Growth is expected to remain at 3.7% in FY2027, although higher energy prices and logistics costs linked to the Middle East conflict could weigh on activity.
The bank also expects inflation to average 8.3% in FY2027, above the central bank’s medium-term target range. Energy, food and agricultural input costs are among the factors expected to keep price pressures elevated.
ADB identified additional downside risks including tighter global financing conditions, weaker tax revenue, weather-related agricultural shocks, possible pressure on remittances from Gulf labour markets and delays in energy-sector and state-owned enterprise reforms.