The Asian Development Bank (ADB) has forecast Pakistan’s economy to grow by 3.5% in FY2026 and 4.5% in FY2027, while warning that a prolonged Middle East conflict could worsen energy-price volatility, disrupt trade and weigh on the country’s inflation and external position.
In its Asian Development Outlook April 2026, the ADB said growth in FY2026 would be supported by a quicker-than-expected recovery in manufacturing, stronger construction activity and rising private investment, underpinned by improved macroeconomic stability and renewed business confidence.
