Dawn
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08:32 Apr 10, 2026
ISLAMABAD: The Asian Development Bank (ADB) on Friday upgraded Pakistan’s economic growth rate to 3.5 per cent for the current fiscal year, but warned of downside risk from global economic uncertainty amid the Middle East crisis. “Pakistan is expected to sustain its economic performance in the medium term, with real gross domestic product (GDP) growth forecast at 3.5pc in FY2026 and 4.5pc in FY2027, from 3.1pc in FY2025, as manufacturing recovers and investment increases“, the Manila-based lending agency said in its flagship Asian Development Outlook (ADO) April 2026. However, it warned that “despite recent stabilisation and recovery, Pakistan’s economic outlook faces significant downside risks from global economic uncertainty, leading to elevated inflationary, fiscal, and external account pressures”. The bank had earlier forecast 3pc growth for the current fiscal year. “Pakistan’s economy has stabilised and begun to show stronger momentum, supported by progress in implementing key economic reforms amid a cha...