The Asian Development Bank (ADB) forecasts Pakistan’s growth rate to be 1.9 per cent for the 2024 fiscal year.
The bank’s annual Outlook Report for 2024 indicates that inflation, having reached a five-decade high last year, may start to recede next year. This year’s rise is tied to increased energy prices under the IMF program.
The report also identifies political instability as a key hurdle for Pakistan’s economic recovery and reforms. Inflation is expected to stay 25% this year but could drop next fiscal year.
Political uncertainties and severe flooding have exacerbated economic contraction in Pakistan. Rising costs and taxes have hampered the growth of the construction sector.
The ADB stresses the need for measures to include more women in Pakistan’s financial sector. This year, it remains optimistic about potential agricultural production and industrial sector improvements.
Reforms, if implemented, could spark economic recovery starting this year and help reduce inflation next year. The bank expects food prices to stabilize, potentially reducing the inflation rate to 15 per cent.
