The Asian Development Bank (ADB) released an economic outlook report forthe Asian region on Wednesday, shedding light on Pakistan’s economictrajectory. According to the report, Pakistan is expected to experience amodest recovery in its gross domestic product (GDP) growth, withprojections indicating a rise to 1.9% in the fiscal year 2023-24, up from ameager 0.3% in FY2023.
The report further elaborates on the factors influencing this economicoutlook. Inflation in Pakistan is anticipated to see a decline from thecurrent 29% to 25% during the ongoing fiscal year. This drop is attributedto the growing economic confidence stemming from the general electionsscheduled for 2023-24. However, the report underscores that Pakistan willstill grapple with high inflationary pressure due to surging energy pricesand the depreciation of the national currency, the rupee.
ADB Country Director for Pakistan, Yong Ye, emphasized the crucial role ofpolicy reforms in Pakistan’s economic prospects. He stressed that thenation’s economic stability hinges on the consistent implementation ofthese reforms, which are vital for restoring fiscal and external buffers.
Additionally, Ye highlighted that Pakistan faces external challenges aswell, as global price fluctuations and sluggish economic growth posesignificant threats to the country’s economic stability.
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In summary, the ADB’s economic outlook report paints a cautious picture ofPakistan’s economic recovery, anticipating a gradual improvement in GDPgrowth while emphasizing the need for sustained policy reforms to ensurestability in the face of internal and external challenges
