The Asian Development Bank (ADB) forecasts that Pakistan will face the highest inflation and the lowest economic growth rate in its region for the fiscal year 2023-2024.
According to the ADB’s Development Outlook report, Pakistan is projected to have a growth rate of only 1.9% this year, coupled with an inflation rate of 25%. In comparison, neighbouring India is expected to see an inflation rate of 4.6%, Bangladesh at 8.4%, and Bhutan at 4.5%.
Other regional forecasts include the Maldives’ 3.2% inflation, Nepal’s 6.5%, and Sri Lanka’s 7.5%.
Economic growth in India pegged at 7%, and Bangladesh pegged at 6.1%, notably higher than Pakistan’s. Other Asian countries like Indonesia, Malaysia, and the Philippines are also expected to outpace Pakistan regarding economic growth.
Singapore, Thailand, and Vietnam are likewise predicted to experience higher growth rates than Pakistan. Sri Lanka’s growth, however, is anticipated to be 1.9%, aligning with Pakistan’s.
The ADB optimistically notes that Pakistan’s economic growth may improve to 2.8% next year if political stability is maintained, with inflation potentially reducing to around 15%.
The report underscores the positive impact of economic reforms in Pakistan, particularly in the agriculture and manufacturing sectors, emphasizing that continued reform implementation is key to the country’s economic stability.
