The Asian Development Bank (ADB) has raised Pakistan’s GDP growth forecast for 2025 from 2.7% to 3%, citing stronger industrial performance and a faster-than-expected economic rebound. The updated projections were released in the Bank’s latest economic assessment of Pakistan.
According to the report, the country posted a robust 5.7% growth rate in the final quarter of the previous fiscal year, driven by accelerated production in major industries and renewed economic momentum. The ADB noted that Pakistan’s growth trajectory has remained resilient despite the June 2025 floods, which initially sparked concerns over economic disruption. Momentum persisted due to rising private sector credit, improved consumer spending, and increased investment activity. A notable expansion in large-scale industrial output has been a major pillar of the ongoing recovery.
The Bank expects further improvement in the current fiscal year, supported by a more favourable business environment. Growth projections for 2025–26 also show an upward trend, reflecting renewed confidence in Pakistan’s stabilizing economy.
Despite the improved outlook, the ADB cautioned that weak external demand and continued global trade uncertainty remain significant risks. Even so, domestic recovery—particularly in industry and investment—is helping sustain the positive trajectory.
The report highlights that rising consumption and greater access to credit have been crucial in stabilizing the economy. The steady rebound in investment and industrial activity remains central to Pakistan’s upgraded growth forecast for 2025.
