Pakistan, July 9 -- The Asian Development Bank (ADB) has lowered Pakistan's FY2027 economic growth forecast to 3.7 percent while raising inflation projections for FY2026 and FY2027. The revised outlook reflects higher energy costs, pressure on workers' remittances, and risks linked to the Middle East conflict. Businesses, consumers, and policymakers could face greater economic challenges as inflationary pressures persist.

In its Asian Development Outlook July 2026, the ADB said Pakistan's economy expanded by 3.7 percent in FY2026. The growth was driven by stronger industrial and services activity alongside modest agricultural gains. However, the bank expects economic momentum to remain subdued during FY2027 because of rising energy costs...