Pakistan’s fragile economy faces deep-rooted structural challenges that threaten long-term stability, warned the State Bank of Pakistan (SBP) in its Annual Report on the State of the Economy 2024-25.

The report highlights how persistent fiscal deficits, dwindling domestic savings, weak productivity, and repeated climate disasters have locked the country in a cycle of stagnation and dependency, as reported by The Express Tribune.

According to The Express Tribune, the SBP projects GDP growth between 3.25 per cent and 4.25 per cent for the fiscal year 2026, with inflation likely to stay in the 5-7 per cent range. The current account deficit is expected to remain around 0-1 per cent of GDP, indicating relative external stability.

Yet, the central bank warned that recent floods in Punjab and

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