ISLAMABAD: The Asian Development Bank (ADB) has predicted an improvement in Pakistan’s economic growth, further reduction in inflation.
ADB has released an outlook report on Pakistan’s economic performance, in which the Asian Development Bank says that Pakistan’s economy has improved during the fiscal year 2023-24, which is mainly due to the increase in agricultural income. There are increases and remittances received from abroad.
According to the Asian Development Bank, Pakistan’s gross domestic product (GDP) grew by 2.4 percent and is expected to improve further in the current fiscal year 2024-25, with GDP growth reaching 2.8 percent. There is a possibility of
The outlook report released by the Asian Development Bank for September further states that sustained and robust implementation of the economic reform program is necessary to sustain the country’s economic recovery.
Asian Development Bank’s Country Director in Pakistan, Yeung Ye said that Pakistan’s economic growth depends on the continuation of policy reforms to restore fiscal stability and external reserves. According to the report, the average rate of inflation was 23.4 percent in the fiscal year 2024, which was 29.2 percent in the previous year 2023, and the main reason for this decrease was the increase in agricultural production and the decrease in food prices.
Inflation is expected to decline further to 15 percent in 2025, largely due to stable monetary policy, an improving exchange rate, and stabilization of global food prices.
Fiscal discipline for economic stability, increased social spending, and improved business environment are key to sustain private sector-led growth. However, the agriculture sector is expected to slow down, while the manufacturing and services sectors are expected to grow as a result of improved economic conditions.
The Asian Development Bank stressed that Pakistan needs to promote public sector reforms and private sector investment in order to avoid financial risks so that the overall economy of the country can be set on the path of stable and sustainable growth.
