Pakistan’s economy grew by 3.0 percent in the fiscal year ending June 2025, up from 2.6 percent the previous year, according to the World Bank’s latest Pakistan Development Update.
The report, “Staying the Course for Growth and Jobs,” highlights a rebound in industrial activity and expansion in the services sector, but warns that growth will remain at 3 percent in the coming year due to the lingering impacts of recent floods on agriculture.
The World Bank projects that growth could pick up in the medium term if Pakistan maintains macroeconomic stability and continues with key reforms. Fiscal tightening and prudent monetary policy have helped anchor inflation and support current account and fiscal surpluses, despite a challenging global environment. Improved business confidence has supported industry and services, but agriculture has lagged due to adverse weather and pest infestations.
“Pakistan’s recent floods have imposed significant human costs and economic losses, dampening growth prospects and adding pressure on macroeconomic stability,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. She emphasized the need for continued reforms, job creation, and stronger social safety nets to ensure sustainable development and resilience.
73pc of foreign investors recommend Pakistan for future FDI: OICCI Perception Survey
