The Asian Development Bank (ADB) released an economic outlook report for the Asian region on Wednesday, shedding light on Pakistan's economic trajectory. According to the report, Pakistan is expected to experience a modest recovery in its gross domestic product (GDP) growth, with projections indicating a rise to 1.9% in the fiscal year 2023-24, up from a meager 0.3% in FY2023.
The report further elaborates on the factors influencing this economic outlook. Inflation in Pakistan is anticipated to see a decline from the current 29% to 25% during the ongoing fiscal year. This drop is attributed to the growing economic confidence stemming from the general elections scheduled for 2023-24. However, the report underscores that Pakistan will still grapple with high inflationary pressure due to surging energy prices and the depreciation of the national currency, the rupee.
ADB Country Director for Pakistan, Yong Ye, emphasized the crucial role of policy reforms in Pakistan's economic prospects. He stressed that the nation's economic stability hinges on the consistent implementation of these reforms, which are vital for restoring fiscal and external buffers.
Additionally, Ye highlighted that Pakistan faces external challenges as well, as global price fluctuations and sluggish economic growth pose significant threats to the country's economic stability.
In summary, the ADB's economic outlook report paints a cautious picture of Pakistan's economic recovery, anticipating a gradual improvement in GDP growth while emphasizing the need for sustained policy reforms to ensure stability in the face of internal and external challenges