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Pakistan Targets 4 Percent Growth in 2026 Despite Economic Hurdles
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Firstpost•12-10-2026, 10:23
Pakistan Targets 4 Percent Growth in 2026 Despite Economic Hurdles
- •Finance Minister Muhammad Aurangzeb stated that Pakistan is targeting economic growth of over 4 percent in 2026 while managing financing needs and inflation.
- •The World Bank projects a more cautious growth rate of 3.8 percent for Pakistan in the 2026-27 fiscal year with inflation expected at 8.2 percent.
- •Pakistan accounts for 48 percent of people living below the 3 dollar a day poverty threshold across the MENAAP region, following severe economic shocks.
- •High global energy costs, debt-servicing expenses, and geopolitical tensions in West Asia continue to pose major risks to the country's economic stability.
Key Questions Answered
Finance Minister Muhammad Aurangzeb stated that Pakistan is targeting an economic growth rate of more than 4 per cent in 2026 as the country seeks to balance its financing needs, inflation, and persistent poverty.
The World Bank projects Pakistan's economy to expand by 3.8 per cent in the 2026-27 fiscal year, with inflation expected to rise to 8.2 per cent and real GDP per capita growing by a modest 2.2 per cent.
A World Bank report revealed that Pakistan accounts for 48 per cent of people living below the $3-a-day poverty threshold across the MENAAP region, with its poverty rate increasing by 6.4 percentage points between 2018-19 and 2024-25.
