KARACHI: The Asian Development Bank (ADB) predicts Pakistan’s growth rate to be 1.9 percent this fiscal year, with a reduction in the wave of inflation in the following financial year.
According to the Asian Development Bank’s annual Outlook Report for 2024, inflation in Pakistan reached its highest level in five decades last year; nevertheless, inflation has continued to grow this year due to an increase in energy costs as part of the IMF program.
According to the Asian Development Bank’s annual report, political instability in Pakistan is a significant impediment to economic recovery and change.
Meanwhile, inflation in Pakistan is predicted to stay high at 25% this fiscal year, but would likely fall dramatically the next fiscal year.
According to the research, Pakistan’s economy contracted owing to political uncertainty and widespread floods, and the expansion of the construction sector has been hampered by rising prices and taxes.
The research urged that efforts be taken to increase financial inclusion for women in Pakistan, while also expressing hope that agricultural production and the industrial sector will grow during the current fiscal year.
According to the ADB assessment, if the reforms are implemented, the economic recovery would begin this year, and inflation for Pakistanis is expected to fall in the coming fiscal year. Food costs are anticipated to stabilize. Inflation will hit 15%.
The ADB research stated that if the recommended changes are implemented, economic recovery might begin as early as this year, perhaps contributing to lower inflation for Pakistanis in the 2018 fiscal year.
It also forecasts that food prices would stabilize, which will help to reduce inflation to 15%.
Maria Ghanchi