Pakistan’s economy grows by 2.7% in FY2024-25

Pakistan’s economy recorded a growth rate of 2.7% during the fiscal year 2024-25, exceeding earlier projections, according to the latest report issued by the Asian Development Bank (ADB), titled Asian Development Outlook - July 2025.

The report described the country’s economic performance as encouraging, attributing the improvement in macroeconomic stability to a steady decline in inflation and lower prices of essential commodities.

According to the Associated Press of Pakistan (APP), the report highlighted a consistent decline in inflation over the first eleven months of the fiscal year, leading ADB to maintain its inflation forecast at 5.8%. Better-than-expected performance in the industrial and services sectors, alongside ongoing reforms in agriculture, contributed significantly to the overall economic expansion.

Despite global headwinds such as trade uncertainty, elevated tariffs in the United States, geopolitical tensions, and a slowdown in property markets in key economies, Pakistan sustained a positive economic trajectory. ADB credited this resilience to Pakistan’s domestic policy reforms, enhanced fiscal discipline, and improved macroeconomic management.

Last week, Pakistan’s Prime Minister Muhammad Shehbaz Sharif hailed the increase of current account surplus to $2.1 billion in fiscal year 2024-2025.

In a statement, he said current account surplus had reached the highest level in last 22 years which was a very positive development.

WAM