Pakistan, Oct. 8 -- Pakistan's economy is projected to grow modestly by 2.6% in FY2025-26, as catastrophic floods weigh on agricultural output and inflation pressures resurface, noted the latest World Bank economic report on the Middle East, North Africa, Afghanistan & Pakistan (MENAAP) on Tuesday.

"In Pakistan, real GDP at factor cost is expected to have grown by 2.7% year-on-year in FY 2024/25, slightly above FY 2023/24's 2.5 % expansion. For FY 2025/26, real GDP growth is projected to remain around 2.6%, as ongoing catastrophic floods have damped the forecast," read the report.

The World Bank shared that early estimates suggest a drop of at least 10% in agricultural output in Punjab, affecting major crops such as rice, sugarcane, cot...