Pakistan’s economy expanded three percent in fiscal year 2025 (FY25), the World Bank said in a report on Tuesday, but warned that growth is likely to remain flat in the next fiscal year due to the impacts of recent floods.
In the report, titled Staying on track for growth and jobs, the World Bank said the country’s economy “expanded three percent in the fiscal year ending June 2025, up from 2.6 percent the previous year.”
Citing the reasons behind the expansion, the WB stated that “fiscal adjustment and appropriate monetary policy helped anchor inflation and support primary fiscal and current account surpluses amid a challenging global and domestic environment.”
“Increased confidence supported industrial and service sector growth, even as agriculture growth underperformed, in part due to adverse weather and pests,” he added.
However, it warned that while the outlook remains favourable, it has also “been tempered by recent flooding, which has had a significant impact on people and damage to urban areas and agricultural land”.
“The recent floods in Pakistan have imposed significant human costs and economic losses, damaging growth prospects and adding pressure on macroeconomic stability,” World Bank Country Director for Pakistan Bolormaa Amgaabazar said in the statement.
More to follow.
