Islamabad, Jan. 15 -- The World Bank has lowered Pakistan's economic growth forecast for the current fiscal year. It now expects growth at 3%. Previously, the government aimed for 4.2%. This revision reflects challenges in agriculture, trade, and recovery from recent floods.

The report predicts that Pakistan's growth could rise to 3.4% in the 2026-27 fiscal year. Recovery efforts in agriculture and reconstruction projects may support the economy. Additionally, industrial activity and bank lending are showing signs of improvement, which could boost overall economic performance.

Read more: Pakistan's GDP grows 3.71% in Q1 FY2026

Inflation is expected to decrease gradually due to lower food prices. Despite recent cuts in interest rates, m...