The Asian Development Bank (ADB) has forecast a decline in Pakistan’s inflation rate for 2025. The decline is mainly due to falling food and commodity prices. This projection offers some relief to consumers who have struggled with rising living costs in recent years.
In its latest report, the ADB kept Pakistan’s inflation forecast for the fiscal year 2025-26 at 5.8%. At the same time, it projected the country’s economic growth to reach 3%. This modest growth reflects ongoing structural issues and economic challenges.
According to the ADB, the prices of key items, such as food and fuel, are expected to stabilise. This may help reduce inflationary pressure. However, the bank warned that Pakistan still faces deep-rooted economic problems. These include low exports, weak fiscal controls, and pressure from external debt.
The report also mentioned the need for major reforms. The ADB emphasised that Pakistan must maintain fiscal discipline. It should also boost export-led industries and improve its trade balance. These steps are seen as vital for long-term economic stability.
On a regional level, the ADB’s report provided a broader outlook for South Asia. It expects the region’s economy to grow by 6.2% in 2026. This growth is likely to come from strong domestic demand across countries such as India, Bangladesh, and Sri Lanka.
Inflation across South Asia is also expected to ease. The ADB estimates it will fall to 4.5% in 2026. This drop is tied to the assumption that global food and fuel prices remain stable.
However, the report also pointed to global risks. One concern is the rise in trade protectionism. The ADB noted that the U.S. has increased tariffs on some imports. This could slow down export growth in Asia and add uncertainty to the global economy.
In Pakistan’s case, the report comes as the government seeks a fresh deal with the International Monetary Fund (IMF). With rising debt and a weak currency, Islamabad is seeking long-term support to help stabilise its economy.
Overall, the ADB’s forecast gives hope for lower inflation. However, it also underscores the pressing need for reforms to ensure sustained economic growth.Read how this surprising medical breakthrough could transform venom treatment: Can Camel Tears Heal? Surprising Scientific Discovery
