Dollar and oil may get more expensive next month in Pakistan: ADB

Dollar and oil may get more expensive next month in Pakistan: ADB
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ISLAMABAD:Pakistan is likely to see a rise in the price of the dollar and oil next month. This increase in prices will result in more inflation occurring in the country.

The Asian Development Bank said this in its Asian Development Outlook (ADO) 2018 report. Its outlook for the GDP for this financial year in Pakistan is expected to be 5.6%. It may possibly drop to 5.1%. 

Pakistan’s foreign debt will rise and the country’s current account deficit is likely to hamper its economic growth, claims the report.

The report  says that the regulatory duty failed in decreasing imports in the country. Pakistan witnessed an increase in imports, especially of electronic appliances, cars and machinery.

ADB Country Director for Pakistan Xiaohong Yang advised the country to increase its exports to boost its economy.

“Pakistan’s economic prospects in the coming years remain positive if the budget and current account deficits are reduced and exports are rejuvenated by improving the country’s competitiveness,” he said.

The report said that the current account deficit is likely to increase because of spillover from higher investment expenditure.

“Therefore, securing adequate financing to fill the gap in foreign exchange reserve is an additional challenge.” APP/AFP

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