Islamabad: (RightNow) The Asian Development Bank has released a report stating that continuous reforms and strong foreign exchange reserves play a crucial role in Pakistan’s economy.

According to the bank’s report, Pakistan’s economic growth rate is projected to be 3.7% in the fiscal year 2027, which is below the government’s target of 4%. The report noted that last year, Pakistan’s economy improved, with the growth rate increasing from 3.2% to 3.7%.

The report mentioned that the Middle East conflict affected economic activity in the last part of the fiscal year, while an improvement in credit rating in 2027 is expected to boost private investment.

The report stated that expensive energy and external uncertainties could limit growth, while reforms and promoting private investment are necessary for economic stability.

It is noteworthy that during the last year, growth was observed in the manufacturing and services sectors, with agriculture seeing a 2.9% increase. Private investment also recorded an 8.6% rise.