Pakistan is at 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. This marks 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 has revised Pakistan’s growth forecast downward to 2.6% for FY2025–26, compared to the government’s relatively optimistic target of around 4%.
He noted that this revised estimate follows three years of disappointing economic performance: -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 periods in Pakistan’s economic history — characterized by persistently low growth, record-high inflation and interest rates, and a sharp decline in investor confidence.
