Country's economic growth rate reaches 3.7 percent, big increase in private investment

Services, manufacturing, agriculture and private investment played role in economic growth, Asian Development Bank

Islamabad: Pakistan's economic growth rate has reached 3.7 percent while private investment has also seen a big increase.

According to Asian Development Bank, Pakistan's economic growth rate increased to 3.7 percent in fiscal year 2026, which was 3.2 percent in fiscal year 2025, while growth rate is also projected to remain 3.7 percent in fiscal year 2027.

According to ADB, services, manufacturing, agriculture and private investment played role in economic growth. Despite flood damages, growth rate of agriculture sector remained 2.9 percent in fiscal year 2026.

Private investment in Pakistan increased by 8.6 percent during fiscal year 2026, while increase in total foreign exchange reserves strengthened country's external financial resilience. According to ADB, S&P and Moody's improved Pakistan's sovereign credit ratings, while Pakistan regained access to global capital markets through Eurobond and Panda bonds in April and May 2026.

Average inflation in Pakistan remained 7.1 percent during fiscal year 2026, while average inflation is projected to remain 8.3 percent in fiscal year 2027. According to Asian Development Bank, expected inflation for fiscal year 2027 is more than central bank's target of 5 to 7 percent.

ADB says escalation of conflict in Middle East can increase Pakistan's energy import cost, while in case of employment being affected in Gulf countries, remittances coming to Pakistan can also be affected.

According to report, austerity measures again by government can affect economic activities, while global financial conditions, tax revenues and climate risks are also challenges for economic outlook.

According to ADB, delay in energy and state-owned enterprise reforms is also economic risk. Consistent implementation of reforms is important to maintain fiscal and external stability.