ISLAMABAD – Asian Development Bank has issued an economic outlook report, sharing predictions about Pakistan’s gross domestic product (GDP) growth which according to the regional development bank will recover modestly to 1.9pc in fiscal year 2023-24 from 0.3% in FY2023.
In its report, the Asian Development Bank (ADB), said inflation in Pakistan will move down from 29 percent to 25 percent in the ongoing fiscal year as the country’s economic confidence is likely to increase from the general elections.
The report said the country’s economic prospects are closely tied to the steadfast and consistent implementation of policy reforms to stabilize the economy and rebuild fiscal and external buffers.
It further mentioned that fiscal discipline, a market-determined exchange rate, and speedier progress on reforms in the energy sector and state-owned enterprises are key to reviving economic growth and protecting social and development spending.
#ADO2023 September is out! 📊
Read ADB’s latest economic forecasts and insights for developing economies in Asia and the Pacific. ⬇️https://t.co/jjnocCStQA pic.twitter.com/2HcxSmtKmd
— Albert Park (@ADBChiefEcon) September 20, 2023
The bank however mentioned that the Economic Adjustment Program has to be implemented for macroeconomic stability and gradual economic recovery while relaxation of controls on imports is likely to increase investment.
Albert Park, Chief Economist and Country Director of ADB said Increase in global prices and slow economic growth is also a threat to Pakistani economy along with economic stability depends on sustained policy reforms.
It further called for maximum fiscal discipline and urged market-based exchange rate along with emphasizing on speedy reforms in the energy sector and other government institutions.
