ISLAMABAD: Pakistan has been included for the first time among the world’s fastest-growing economies in the South Asian region, according to a new report released by the World Bank.
The World Bank’s latest assessment identifies South Asia as the fastest-growing region globally, projecting an overall GDP growth rate of 6.6 percent in 2025. Despite ongoing conflicts, economic vulnerabilities, and rising migration trends, Pakistan’s growth rate is expected to reach 2.2 percent, the report noted.
The report highlights that, while global growth continues to slow, South Asia’s economic outlook remains positive. It credits the region for demonstrating strong resilience in the face of multiple challenges, including political uncertainty and global financial pressures.
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However, the World Bank also warned of potential slowdown in 2026, citing factors such as policy inconsistency, social and political instability, and uncertainty in the labor market.
The report further points out that the rapid rise of artificial intelligence (AI) technologies is contributing to labor market uncertainty, and South Asian economies face hurdles in fully adapting to this technological transformation.
To sustain growth momentum, the World Bank has emphasized the need for accelerated economic and market reforms, along with proactive measures to safeguard employment and strengthen labor markets.
