ADB keeps Pakistan\'s growth at 3.7%
The Asian Development Bank (ADB) on Wednesday kept Pakistan's economic growth forecast at 3.7%, the third lowest in South Asia and below the official target, and said that the government may have to slash expenses due to any shortfall in tax collection by the Federal Board of Revenue (FBR). In its flagship Asian Development Outlook, the Manila-based lending agency said that household consumption in Pakistan would remain subdued in the current fiscal year due to a rising cost of living. It put the inflation forecast at 8.3% for the new fiscal year, the second highest in the region after Bangladesh. Inflation will remain above the central bank's medium-term target range, complicating monetary policy, according to the ADB. It said that economic growth was projected to remain at 3.7% in fiscal year 2026-27 as lingering effects from the Middle East conflict dampened macroeconomic momentum.