ISLAMABAD – The World Bank has projected that Pakistan’s economic growth will remain subdued at around 3 per cent in the fiscal year 2025–26, citing the lingering impact of floods and structural weaknesses in key sectors.
According to the report, despite moderate recovery signs, agriculture and exports continue to struggle due to climate-related disruptions and limited investment inflows. The lender noted that high inflation, fiscal tightening, and global uncertainty have further slowed momentum in industrial and service sectors.
The World Bank added that if Pakistan sustains structural reforms — including broadening its tax base, promoting trade diversification, and investing in climate resilience — growth could accelerate to 3.4 per cent by FY27.
The outlook highlights the urgent need for policy consistency, improved governance, and stronger climate adaptation measures to prevent long-term economic stagnation.
This story has been reported by PakTribune. All rights reserved.