The World Bank has released a report on global economic prospects, projecting Pakistan’s economic growth at 3 percent for the current fiscal year, slightly down by 0.1 percent compared to its June 2025 estimate.
The federal government, however, has set a target of 4.2 percent GDP growth for the year. Looking ahead, the report forecasts that Pakistan’s GDP growth could rise to 3.4 percent in 2026-27, supported by post-flood agricultural recovery and reconstruction activities.
The World Bank noted that a decrease in food prices has helped ease inflation, while monetary policy remains cautious despite a reduction in interest rates. However, increased US tariffs could affect Pakistan’s exports, and uncertainties in trade policies or regional economic conditions could pose risks.
The report further warned that rising imports in 2026-27 could widen the current account deficit, and a return to normal remittance flows may increase external financial pressure.
On the positive side, structural reforms in the private sector could boost employment and development, while industrial activity is accelerating, supported by increased lending from banks.
Globally, the World Bank described the international economy as more stable than expected, though growth remains slow. The report projects global growth at 2.6 percent in 2026 and 2.7 percent in 2027, while highlighting widening disparities in living standards across developing countries.
