Islamabad: (RightNow) Pakistan’s economic growth rate has reached 3.7%, with a notable rise in private investment. According to the Asian Development Bank, this rate increased from 3.2% to 3.7% in the fiscal year 2026.

Services, manufacturing, agriculture, and private investment played a key role in this growth. Despite flood damages, the agricultural sector’s growth rate remained at 2.9%.

Private investment in Pakistan increased by 8.6%, while foreign exchange reserves improved financial resilience. S&P and Moody’s have also upgraded credit ratings.

Average inflation stood at 7.1%, with expectations to rise to 8.3% next year. This estimate exceeds the central bank’s target of 5 to 7%.

It is noteworthy that energy import costs and remittances may be affected by the Middle East conflict. Reforms and austerity measures could also pose challenges to the economic outlook.