Asian Development Bank (ADB) In its latest report, during the current fiscal year 2023-24, Pakistan’s growth rate is expected to be 1.9 percent, and has expressed the fear of rising inflation in the same period.
In the ‘Annual Asian Development Outlook Report 2024’ released on Thursday, political instability, economic recovery and reforms have been identified as key challenges for Pakistan.
The report said that inflation is expected to decrease in the next financial year.
The report further said that inflation in Pakistan is expected to remain at a high level of 25% this fiscal year.
In the annual report of the Asian Development Bank, it was said that inflation in Pakistan last year was higher than the previous five decades.
The report predicted that inflation would remain high due to the increase in energy prices under the International Monetary Fund (IMF) programme.
A report by the Asian Development Bank stated that Pakistan’s economy has shrunk due to political uncertainty and devastation caused by floods.
“Pakistan’s economy is showing signs of gradual recovery, supported by higher crop yields and improved manufacturing,” said ADB Country Director for Pakistan Yong Yee.
‘Growth is forecast to resume in 2024 and strengthen in 2025 — but continued implementation of policy reforms is critical to sustaining this momentum and strengthening the country’s fiscal and external buffers.’
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According to the report, growth in the construction sector has been affected by rising costs and increased taxes.
The report said that measures are needed for the inclusion of women in the economy of Pakistan.
The ADB report expressed the expectation that agricultural production and the industrial sector are expected to improve this fiscal year.
According to the report, inflation for Pakistanis is expected to come down during the next financial year and food prices will stabilize, which has shown the possibility of inflation rate to come down to 15 percent and the growth rate is expected to be 2.8 percent. has gone
The report said that Pakistan will have to depend on international financial institutions and friendly countries for external payments.
Regarding other countries in the region, the report says that China’s growth rate is likely to remain at 4.8 percent and India’s growth rate at 7 percent if food prices stabilize and inflation rate decreases.