• Manila-based lending agency forecasts growth at 2.5pc
• Calls consistent policy key to resilience and inclusive growth
• Says political tensions could undermine business confidence recovery
• Cautions drought and low rainfall may threaten food security
• Sees growth in industry and services with continued monetary easing

ISLAMABAD: With a 2.5 per cent economic growth forecast for the current fiscal year, the Asian Development Bank (ADB) has highlighted several downside risks to Pakistan’s nascent and fragile economic stabilisation and recovery, cautioning against complacency or any deviation from the ongoing IMF programme.

In its annual flagship report, Asian Development Outlook (ADO) April 2025, the Manila-based lending agency projected the South Asian region to remain the fastest-growing sub-region, with growth rates of 6pc in 2025 and 6.2pc in 2026, up from 5.8pc in 2024. India is expected to lead with growth rates of 6.7pc in 2025 and 6.8pc in 2026.

The Asian region as a whole is projected to grow at 4.9pc in 2025 and 4.7pc in 2026 amid slowdown in China due to property crisis and external trade challenge, the report said, adding that the full impact of the higher US tariffs........

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