Debt, low productivity, climate risks weigh on the economy
SBP Annual Report Urges Urgent Focus on Human Capital, Technology, Innovation to Promote Sustainable Development State Bank of Pakistan. Photo: Archive Persistent fiscal imbalances, low domestic savings, weak productivity and climate-related crises remain critical obstacles to sustainable progress, the State Bank of Pakistan noted in its Annual Report on the State of the Economy 2024-2025. The State Bank of Pakistan (SBP) forecasts GDP growth in FY26 at 3.25-4.25%, near the lower end of its forecast range, while inflation is expected to hover around 5-7%. The current account deficit is forecast at 0-1% of GDP, indicating stability in the external sector.
