ADB cuts Pakistan's growth forecast and raises inflation outlook

The Asian Development Bank (ADB) has cut Pakistan’s growth outlook for the 2026-27 fiscal year while increasing its inflation forecast, citing regional uncertainty and risks to energy markets. In its latest “Asian Development Outlook” report, the ADB lowered projected GDP growth from 4.5% to 3.7% for the current fiscal year. It also raised average annual inflation expectations from 6.5% to 8.3%. The ADB notes Pakistan’s government targets 4% GDP growth for 2026-27 and aims to keep average inflation at 8.2%. The bank warns that continued Middle East tensions could push inflation higher by affecting energy prices and wider economic conditions. It also reported a four billion US dollar financing decision for Pakistan, according to 24NewsHD TV.