S&P, SBP forecast steady growth, controlled inflation

January 27, 2026 (MLN): Pakistan is set to experience moderate economic growth in the coming years, according to projections from S&P Global Market Intelligence and the State Bank of Pakistan (SBP).

S&P Global Market Intelligence projects Pakistan’s inflation to moderate at 5.1% in 2026, with a slight uptick to 5.6% in 2027.

Meanwhile, the SBP expects inflation to remain within 5–7% over the next two years, indicated a stable price environment amid ongoing economic adjustments.

On the external front, S&P projects a current account deficit of 0.5% of GDP in 2026, widening slightly to 1.3% of GDP in 2027.

In comparison, the SBP anticipates the current account deficit will stay within 0–1% of GDP in FY26, showing manageable external imbalances.

Pakistan’s economic growth is expected to remain resilient.

S&P forecasts real GDP growth of 3.5% in FY26, strengthening to 4.4% in FY27.

The SBP projects a slightly broader growth range of 3.75–4.75% for FY26, showed optimism for sustained economic recovery.

Overall, both S&P and SBP indicate a stable economic trajectory for Pakistan in the near term.

Moderate inflation, controlled current account deficits, and steady GDP growth are likely to support investor confidence and economic stability.

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