The World Bank’s latest report has provided significant backing for the Prime Minister’s economic discipline policies, noting that Pakistan maintained economic stability despite the impact of the conflict in the Middle East. Real GDP growth increased from 3.2 per cent in fiscal year 2025 to 3.7 per cent in fiscal year 2026.
The World Bank identified higher revenue collection, expenditure control, a record primary fiscal surplus and an improvement in foreign exchange reserves as key factors behind Pakistan’s economic progress.
According to the report, stable economic policies adopted over the past several years helped support the economy and maintain the momentum of growth. In fiscal year 2026, the primary fiscal surplus reached a record 2.9 per cent of GDP, while increased remittances helped rebuild foreign exchange reserves.
The report stated that Pakistan’s economic improvement was also recognised through credit rating upgrades by two major international rating agencies, S&P and Moody’s. This progress enabled Pakistan to return to international debt markets and issue $3 billion worth of Eurobonds.
According to the World Bank, despite progress in restoring economic stability, Pakistan needs further structural reforms to achieve faster and sustainable growth. The report emphasised that encouraging private investment, improving the business environment, reforming the tax system and reducing the state’s role in the economy could further expand the country’s growth prospects.
The World Bank report stated that accelerating the implementation of structural reforms could significantly increase Pakistan’s long-term economic growth. It projected that effective reforms could triple Pakistanis’ per capita income by 2050.
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