ADB cuts Pakistan growth forecast to 3.7pc on higher energy costs

The Asian Development Bank has revised its growth forecast for Pakistan down to 3.7% due to escalating energy costs and expected reductions in foreign remittances. This revision reflects broader concerns about economic stability in the region, as the bank also adjusted its growth outlook for developing Asia and the Pacific to 4.9% for 2026, down from 5.5% in 2025. The implications are significant, as Pakistan’s economic challenges could impact its ability to fund development projects and support its population. This downward revision underscores the pressing need for effective economic management and policy adjustments.