Pakistan’s economy has expanded by three per cent in fiscal year 2025 (FY25), the World Bank said in a report on Tuesday, but cautioned that growth is likely to remain the same in the next fiscal year due to the impacts of the recent floods.
In the report, titled — Staying the Course for Growth and Jobs — the WB said that the country’s economy “expanded by three per cent in the fiscal year ending June 2025, up from 2.6pc in the previous year.”
Citing the reasons behind the expansion, the WB stated that, “Fiscal tightening and appropriate monetary policy helped anchor inflation and support current account and primary fiscal surpluses amidst a challenging global and domestic environment.”
“Improved confidence supported industry and service sector growth, even as agriculture growth underperformed, in part due to adverse weather and pest infestations,” it added.
However, it cautioned that while the outlook remained favourable, it also “has been tempered by recent floods, which have resulted in significant impact on people and damage to urban areas and agricultural land.”
“Pakistan’s recent floods have imposed significant human costs and economic losses, dampening growth prospects, and adding pressure on macroeconomic stability,” the World Bank Country Director for Pakistan, Bolormaa Amgaabazar, was quoted as saying in the release.
More to follow.
