The Asian Development Bank (ADB) has released its Outlook 2025 report, indicating that Pakistan’s economy showed a slight improvement in fiscal year 2025, with a GDP growth rate recorded at 2.7 per cent.
According to the report, the State Bank of Pakistan reduced the policy interest rate by 1.5 per cent by the end of June 2025.
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Despite this cut, ADB noted that the overall pace of economic growth remained modest, and a significant shift is unlikely in 2026.
The report highlighted persistent risks linked to external factors, particularly uncertainty over tariffs imposed by the United States on Pakistani exports, which could pose challenges to trade.
On inflation, the ADB observed that Pakistan continued to experience a downward trend. Both food and non-food inflation rates have shown a gradual decline during the first eleven months of 2025 in Pakistan.
