ISLAMABAD: (Oct 28) Pakistan’s economy expanded by 3% in fiscal year 2025 (FY25) and is expected to maintain the same growth rate in the next fiscal year, according to the World Bank’s latest Pakistan Development Update released on Tuesday.
Titled “Staying the Course for Growth and Jobs,” the report highlights cautious optimism about Pakistan’s economic trajectory amid persistent structural challenges.
“Pakistan’s economy expanded by 3.0 per cent in the fiscal year ending June 2025, up from 2.6 per cent in the previous year, reflecting a rebound in industrial activity and an expansion in the services sector,” the World Bank said.
The bank projected the country’s growth to remain at 3% in FY26, driven by modest recovery in manufacturing and services, while cautioning that macroeconomic stability, energy reforms, and fiscal discipline remain critical for sustaining momentum.
The report also pointed to risks from inflationary pressures, external financing needs, and slow implementation of reforms, warning that growth could be constrained if fiscal consolidation efforts weaken.