According to the World Bank’s Global Economic Prospects Report, Pakistan’s GDP growth rate is expected to be 2.8% in 2025, the lowest among South Asian countries. While this is a 0.5% improvement compared to June 2024, it still falls short of the IMF’s projection of 3% and the government’s target of 3.6%.
Other South Asian nations, including India, Bhutan, and Maldives, are forecasted to perform better in terms of economic growth. Despite the slow pace, the World Bank predicts Pakistan’s growth rate will improve slightly to 3.2% in the next fiscal year.
On a positive note, Pakistan’s current account surplus has shown encouraging progress. Between July and December 2024, the surplus reached $1.21 billion, indicating some recovery in the country’s external financial position.
The slow growth highlights ongoing challenges for Pakistan’s economy, which continues to struggle compared to its regional peers. Factors such as inflation, policy uncertainty, and external debt pressures have kept growth rates low.
The modest improvement in GDP and the current account surplus suggest some recovery, but the gap between Pakistan and its neighbors remains wide. To close this gap, the country will need to implement structural reforms and focus on long-term economic stability.
While the report signals minor progress, the road ahead will require significant effort to improve economic growth and maintain financial stability in the face of regional competition.
