Pakistan’s economic outlook just received a positive boost, with the Asian Development Bank (ADB) upgrading the country’s GDP growth forecast for 2025 from 2.7% to 3%.

The latest projection comes on the back of stronger industrial performance and a faster-than-expected economic rebound. This upward revision signals growing confidence in Pakistan economic growth 2025 as key sectors show renewed strength.

According to the ADB’s new economic report, Pakistan posted an impressive 5.7% growth rate in the last quarter of the previous fiscal year. This momentum, the report notes, has continued into the current year as major industries ramp up production and investment activity gradually increases.

Despite challenges following the June 2025 floods, Pakistan’s economy managed to stay on track. The ADB highlighted that rising private sector credit, improved consumer spending, and a noticeable revival in investment have all contributed to sustaining growth. Large-scale manufacturing, in particular, has been a critical driver, helping the economy navigate external uncertainties.

Looking ahead, the ADB expects the upward trend to continue. The business environment is described as “increasingly favourable,” with growth for FY 2025–26 also projected to strengthen. This outlook reflects improved confidence in Pakistan’s stabilizing economic conditions and the resilience shown by core industries.

However, the lender cautioned that global economic conditions remain unpredictable. Weak external demand and uncertainties in international trade could still pose risks. Even so, domestic indicators remain strong enough to support the ongoing rebound.