Pakistan faces the risk of entering a prolonged period of economic stagnation, as the World Bank’s latest report projects GDP growth of just 2.6% for FY2025–26 — reflecting a continuation of the country’s weak economic performance over the past four years.
In a post on social media platform X, former President of the Institute of Chartered Accountants of Pakistan (ICAP), Asad Ali Shah, highlighted that the Pakistan Development Update report has revised down the growth forecast to 2.6% for FY2025–26. This is notably lower than the government’s relatively optimistic target of around 4%.
He pointed out that this projection comes after three years of disappointing economic results: -0.2% growth in FY2023, 2.5% in FY2024, and 2.7% in FY2025. According to Shah, this represents one of the worst four-year economic periods in Pakistan’s history — marked by persistently low growth, record inflation and interest rates, and a significant erosion of investor confidence.
