ADB predicts decline in inflation rate in Pakistan

ISLAMABAD: Pakistan is expected to witness a decline in inflation this fiscal year, according to the Asian Development Bank’s (ADB) recent report on developing Asia-Pacific economies.

According to the report, the expected drop in inflation is primarily attributed to a decrease in the prices of food and other essential commodities.

The ADB has forecast Pakistan’s economic growth rate to remain around 3 percent. For the fiscal year 2025–26, the bank maintained its earlier projection of average inflation at 5.8 percent.

The report warns that the implementation of additional tariffs by the United States could not only affect Asian countries, but also expressed concern over exports due to global trade uncertainty.

ADB says the overall economic growth in South Asia is 6.2 percent while inflation is likely to be 4.5 percent.

This report indicates that although there are some positive trends at the regional level, the global trade environment and policy measures will determine the future economic direction.