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