The Asian Development Bank (ADB) has revised down its growth forecast for Pakistan to 3.7% for the fiscal year ending June 2027, citing rising energy costs and expected pressure on foreign remittances. The Manila-based lender had previously projected 4.5% growth in April 2026; it also raised its inflation forecast for Pakistan to 8.3% for FY2027, up from an earlier estimate of 7.2%, attributing the increase to spillover from the Middle East conflict. The downgrade is part of a broader regional trend, with the ADB trimming its 2026 growth outlook for developing Asia and the Pacific to 4.9%, as prolonged energy market disruptions weigh more heavily on the region's economies than anticipated.