Asia Development Bank (ADB) on Tuesday said Pakistan’s economy continued to face strong headwinds but it had the potential to ‘bounce back’ with robust macroeconomic and structural reforms.
“Pakistan’s economy continues to face strong headwinds while last year’s catastrophic floods have exacerbated the economic and financial challenges” said Country Director ADB Yong Ye in a news release while issuing an Asian Development Outlook (ADO) April 2023, flagship economic report.
“Yet, with a history of resilience in the face of adversity and depending on a fast return to stability twinned with robust macroeconomic and structural reforms, Pakistan can bounce back. ADB is committed to continuing to support Pakistan’s economic recovery and development plans,” he added.
The country economic growth is expected to slow in FY2023 (ends June 30, 2023) in the wake of last year’s devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis, ADB report said.
Pakistan’s gross domestic product (GDP) growth is projected to slow to 0.6% in FY2023 from 6% last fiscal year as the economy struggles to recover.
Growth is forecast to rise to 2% in FY2024, assuming the resumption of macroeconomic stability, implementation of reforms, post-flood recovery, and improving external conditions.
ADO April 2023 noted that climate change poses a grave challenge to Pakistan’s economic, social, and environmental development.
According to the Global Climate Risk Index, the country has ranked among the 10 most vulnerable nations worldwide in the past 2 decades. —APP
