Pakistan's Macroeconomic Outlook Strengthens: Capital Market Firm Projects Growth

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News18•28-01-2026, 12:15
Pakistan's Macroeconomic Outlook Strengthens: Capital Market Firm Projects Growth
- •A capital market firm projects a strengthening of Pakistan's macroeconomic outlook for the current and next fiscal years, aligning with State Bank of Pakistan (SBP) estimates.
- •Real GDP is expected to expand by 3.5% in FY26 and 4.4% in FY27, consistent with SBP's projection of 3.75-4.75% growth in 2025-26.
- •These growth projections are higher than the International Monetary Fund's 3.2% estimate for Pakistan.
- •SBP forecasts the current account deficit to remain within 0-1% of GDP in FY26, with foreign exchange reserves potentially exceeding USD 18 billion by June 2026.
- •Inflation is expected to stabilize within the 5-7% target range over the next two years, despite temporary spikes, with S&P projecting 5.1% in 2026 and 5.6% in 2027.
Why It Matters: Pakistan's economy is projected to strengthen with higher GDP growth and stable inflation, despite global risks.
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