Pakistan recorded economic growth of 3.7% in 2026, according to the World Bank’s latest economic report. The report also highlighted changes in inflation, government finances and fuel prices. These figures provide an overview of Pakistan’s economic performance and the financial pressures affecting households and businesses. The findings appear in the World Bank’s Pakistan Development Update 2026.
The report showed that Pakistan’s overall fiscal deficit fell to 2.6% of gross domestic product. Meanwhile, average core inflation in urban areas stood at 7.4% during fiscal year 2025-26. These figures indicate developments in the country’s public finances and underlying price pressures. However, the report also documented substantial increases in fuel and transport costs.
Read more: GDP growth rebounds to 3.7pc in FY26, expected to reach 4pc in FY27
Between February and June 2026, petrol prices in Pakistan rose by approximately 36%, according to the report. High-speed diesel prices increased by 31% during the same period. Liquefied petroleum gas prices recorded an even larger rise of around 46%. These increases affected several major fuel categories within a period of five months.
Transport fares also climbed by approximately 30% between February and June 2026. The increase came alongside higher prices for petrol, diesel and liquefied petroleum gas. The report’s figures highlight the scale of rising transport-related costs during the period. However, the provided findings do not specify how these increases affected individual households or businesses.
Fuel price changes can influence transport expenses and the cost of moving goods. Higher fares may also add pressure to household budgets, particularly for people who regularly use public transport. Nevertheless, the report’s supplied figures do not quantify these wider effects. Its findings cover economic growth, inflation, fiscal performance and selected price changes.
The World Bank also reported an improvement in Pakistan’s credit ratings from S&P and Moody’s. The report did not provide the specific rating changes in the supplied information. Credit ratings offer assessments of a country’s ability to meet its financial obligations. The reported upgrades accompanied the economic indicators highlighted in the latest update.
The report provides a snapshot of Pakistan’s economy during 2026 and fiscal year 2025-26. Its figures cover economic growth, urban core inflation, the fiscal deficit and price increases recorded earlier this year. Further details would be needed to assess the outlook for future growth, inflation and public finances.