The Asian Development Bank has projected Pakistan economic growth at 3.7% for the current fiscal year, below the government’s objective of 4%.
The bank is also expecting average inflation of 8.3%, higher than the official forecast of 7%, due to probable economic disruptions from the ongoing turmoil in the Middle East.

In its Asian Development projection September 2026 projection, it noted Pakistan’s gross domestic product growth was projected to stay at 3.7pc in FY2027.

“As high energy, logistics, and agricultural input costs continue to affect domestic prices, average inflation is projected to rise to 8.3pc in FY27, above the central bank’s medium-term target range of 5pc–7pc,” it continued.

The ADB warned that Pakistan’s economic outlook could come under significant pressure from external developments. A rising Middle East conflict could add to the cost of oil imports, worsen the price hikes and employment conditions in the Gulf countries, which could cut remittance inflows by Pakistani workers.

The ADB said, “The re-imposition of austerity measures by the Pakistan government, especially if expenditure restraint is more pronounced than anticipated, could also weigh on domestic demand and economic activity and pose an additional downside risk to the economic outlook.

Other possible risks to the economy cited by the ADB are a tighter global financial environment, lower-than-expected tax revenue, climate and weather shocks to agriculture, and delays in reforms related to the energy sector and state-owned enterprises.

It is crucial to keep up the momentum on structural changes to improve the country’s fiscal and external position while helping to maintain confidence among investors, the bank added.

Economic activity in Pakistan improved during FY26 which ended June 30, 2026. Growth was 3.7% compared to 3.2% a year ago. A recovery was seen in a number of areas with strong services, rising industrial production, a resurgence in agriculture and strengthening private sector investment. However, economic activity slowed down a little in the last quarter, reflecting the effect of the Middle East crisis.

Continued reforms, better foreign-exchange reserves, renewed access to global capital markets and improvements in Pakistan’s sovereign credit ratings might assist raise investor confidence and stimulate private investment, the ADB said. Meanwhile, persistently high energy costs and uncertainties in the external environment, notably the ongoing impact of the Middle East conflict, could impede the speed of economic expansion.

Jamaat-e-Islami (JI) emir Hafiz Naeem-ur-Rehman said that the party will continue its protests and sit-ins till the government announced withdrawal of petroleum levy.
The long march has been postponed on the request of the prime minister, Hafiz Naeem-ur-Rehman said, adding that he will see the PM after his return from New York.

The JI chief said the JI sit-ins and protests are continuing and the JI will not go back without removing the petroleum charge.

Jamaat-e-Islami (JI) emir Hafizah Naeem-ur-Rehman has announced that the party would continue its protests and sit-ins till the government announces withdrawal of petroleum levy.

JI chief said JI sit-ins and protests are beginning, JI will not go back without removing the petroleum levy.

JI postpones long march to first week of October Read More

We have our own agenda and PTI has its own plan, Hafiz Naeem-ur-Rehman stated. Government should hold dialog with PTI. The PM promised to grant a relief from gasoline levy.”

Hafiz Naeem had claimed the party had suspended its lengthy march till the first week of October on the request of Prime Minister Shehbaz Sharif but made it clear that its protest campaign would continue.

Hafiz Naeem talking to newsmen at a press conference in Multan stated that JI was exposing issues of the basic challenges faced by the population, and accused the government of exploiting the petrol prices and tax collection to hide corruption.

He claimed sit-ins were ongoing in 42 cities, and the party had previously written to the government asking it to rescind the fee, but a negative response had been received.

Hafiz Naeem-ur-Rehman remarked, “PTI’s agenda is different and ours is different. Government should hold dialog with PTI. The PM promised to grant a relief from gasoline levy.”

Hafiz Naeem had claimed the party had suspended its lengthy march till the first week of October on the request of Prime Minister Shehbaz Sharif but made it clear that its protest campaign would continue.

Addressing a press conference in Multan, Hafiz Naeem claimed that the JI was raising concerns related to the basic challenges being faced by the public. He accused the government of utilizing petrol pricing and tax collection to hide corruption.

He said sit-ins were still occurring in 42 places and the party had already written to the government to repeal the fee but got a negative response.

The Punjab Assembly Secretariat has agreed to hold sessions of its standing committees online as a part of austerity measures to cut use of petroleum amid international oil crisis.

The decision was taken within the framework of the ongoing austerity campaign of the federal government, in which public institutions have been asked to cut down on the unnecessary use of petroleum products.

Meetings of all standing committees will henceforth be held remotely, sources say.

However, the Public Accounts Committee (PAC) hearings would continue to be held at Punjab Assembly Secretariat, Lahore.

Sources added that officers posted in Lahore would attend the Public Accounts Committee hearings using online platforms.

The agreement is made to lessen travel requirements and cut down cost on fuel products.

The decision has been decided due to the ongoing austerity drive being run by the federal government, in which public institutions are being asked to cut down superfluous expenses.

Officials believe that moving committee meetings online will cut fuel expenses and reduce expenditure on travel and ensure that parliamentary procedures continue without interruption.

• As part of its austerity measures, the Punjab Assembly Secretariat has decided to host the sessions of its standing committees online in a bid to curtail use of petroleum in view of the international oil crisis.

The decision was taken within the framework of the ongoing austerity campaign of the federal government, in which public institutions have been asked to cut down on the unnecessary use of petroleum products.

Meetings of all standing committees will henceforth be held remotely, sources say.

However, the Public Accounts Committee (PAC) hearings would continue to be held at Punjab Assembly Secretariat, Lahore.

Sources added that officers posted in Lahore would attend the Public Accounts Committee hearings using online platforms.

The agreement is made to lessen travel requirements and cut down cost on fuel products.

The decision has been decided due to the ongoing austerity drive being run by the federal government, in which public institutions are being asked to cut down superfluous expenses.

Officials said shifting committee meetings to online will assist save on gasoline costs and reduce travel expenditure while guaranteeing that legislative procedures continue without any interruption.