ISLAMABAD: The Asian Development Bank (ADB) has released its latest report on Pakistan’s economic outlook, signaling a positive revision in the country’s growth expectations.
According to the report, Pakistan’s GDP growth forecast for 2025 has been revised upward from 2.7% to 3.0%, reflecting a more optimistic economic trajectory. In the last quarter of the previous fiscal year, the economy achieved a notable growth rate of 5.7%, underscoring the momentum built in the industrial and commercial sectors.
The report highlights that production in major industries has accelerated, and a robust performance is expected to continue in the current fiscal year.
Despite the devastating floods in June 2025, which impacted several regions, the overall economic momentum has remained resilient, indicating the effectiveness of recovery measures.
According to the ADB, the increase in private sector credit and consumption has been a significant driver of growth. Additionally, a recovery in investment and industrial output continues to support a positive growth trajectory.
However, the report cautions that weak external demand and ongoing uncertainties in trade remain potential challenges that could affect economic stability.
In related developments, the ADB recently approved a $33 million loan for Pakistan on November 20, 2025, and an additional $4.8 million loan on November 26, 2025.
The bank also provided extra funds for timely project completion on November 20, 2025, and Pakistan signed three key agreements with the ADB on December 5, 2025, further strengthening bilateral economic cooperation.
