Islamabad: Pakistan is expected to experience modest economic growth and greater stability in 2025, with its gross domestic product (GDP) projected to rise by 2.3%, according to the United Nations’ World Economic Situation and Prospects 2025 report.
The report highlights that Pakistan, an important economy in South Asia, is emerging from a period of economic contraction. The anticipated recovery is supported by declining inflation, which has enabled central banks across the region to initiate or maintain monetary easing policies.
It further notes that Pakistan, along with Bangladesh and Sri Lanka, is expected to continue fiscal consolidation and implement economic reforms under International Monetary Fund (IMF)-supported programmes. These measures are aimed at improving macroeconomic stability and restoring investor confidence.
The broader outlook for South Asia remains strong, with regional growth forecast at 5.7% in 2025 and 6.0% in 2026. This momentum is expected to be driven by continued economic strength in India and recovery in economies such as Bhutan, Nepal, and Sri Lanka.
While the global economic landscape faces uncertainties—including heightened trade tensions, elevated policy risk, and slower overall growth—South Asia’s resilience reflects a combination of effective policy measures, easing inflation, and structural reforms.
For Pakistan, the projected 2.3% growth rate marks a return to positive economic momentum and sets the stage for further stabilisation efforts. Continued focus on fiscal discipline, monetary management, and structural adjustments will be essential to sustaining this recovery and supporting long-term development goals.
Pakistan’s performance is expected to contribute to broader regional progress, even as global challenges persist.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
