Brussels, (Unib Rashid) – The World Bank on Thursday downgraded Pakistan’s economic growth forecast for the current fiscal year to 3 percent, citing the negative impact of ongoing conflict in the Middle East.

The revised projection is significantly lower than the estimates shared by Islamabad with the International Monetary Fund.

According to the report, rising geopolitical tensions and war-related uncertainties are expected to put pressure on Pakistan’s external sector, potentially affecting trade flows, foreign exchange reserves, and overall economic stability.