The Asian Development Bank (ADB) has revised its growth forecast for Pakistan, projecting a 2.8% increase in GDP for fiscal year 2025, an improvement from the earlier estimate of 2.5%. This optimistic revision reflects growing macroeconomic stability, largely driven by the recent approval of the International Monetary Fund’s Extended Fund Facility, which has bolstered investor confidence and financial discipline.
According to the ADB, accelerated industrial output and a resurgence in private investment are expected to be key contributors to the country’s economic recovery. Easier access to foreign exchange and more accommodative monetary policies have also created a favorable environment for business activity and economic expansion.
However, the report cautions that the agriculture sector may experience slower growth, with heavy monsoon rains potentially damaging key crops such as wheat and cotton. Despite these agricultural risks, the overall outlook remains positive as Pakistan gradually moves toward economic recovery and sustainable development.
