Asian Development Bank (ADB) has predicted Pakistan’s growth rate in thecurrent year to remain at 4 percent in its Asian Development Outlook (ADO)report.
The report states that slower growth in the current fiscal year reflectsthe government reactivating its stabilization program under theInternational Monetary Fund Extended Fund Facility to narrow the currentaccount deficit, raise international reserves, and cut inflation.
ADB was of the view that Pakistan has seen improvement in the economy dueto the monetary and economic recovery policies adopted by the country inthe previous fiscal year (FY). In addition, a reduction in the currentaccount deficit has also had a positive impact on the economy.
In the previous fiscal year, the country had seen a growth of 5.6 percentdue to concrete steps taken by the government, added ADB.
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However, ADB opined that there is an urgent need to increase foreignexchange reserves and reduce inflation. ADB believes that with effectivemeasures, growth is expected to reach 4.5 percent in 2023.
