Pakistan, May 12 -- Pakistan's central bank projected FY26 GDP growth between 3.75% and 4.75% despite global uncertainty and flood risks. The State Bank warned the Middle East war could disrupt inflation, trade, and remittance flows across Pakistan. However, the SBP said the conflict's broader impact on economic activity would likely remain limited during FY26.

The State Bank of Pakistan released its Half Year Report FY26 on Tuesday, highlighting stronger macroeconomic stability during H1-FY26. Average inflation eased, while foreign exchange reserves improved through SBP purchases and financial inflows. Moreover, prudent fiscal and monetary policies supported economic recovery.

The IMF programme and favourable commodity prices also stre...