The ADB, in a recent report, emphasizes Pakistan's commitment to an economic reform program until April 2024 as a vital step towards restoring investor confidence and achieving macroeconomic stability.
ISLAMABAD: (UrduPoint/Pakistan Point News-Sept 20th, 2023) The Asian Development Bank (ADB) has expressed confidence in Pakistan's economic future.
The ADB, in a recent report, emphasized Pakistan's commitment to an economic reform program until April 2024 as a vital step towards restoring investor confidence and achieving macroeconomic stability.
According to the Asian Development Outlook (ADO) for September 2023, Pakistan's GDP growth is projected to recover modestly, from 0.3% in FY2023 to 1.9% in FY2024, despite ongoing inflationary pressures.
Nonetheless, potential risks to this outlook remain, including global price shocks and slower global economic growth. The ADB also foresees a decrease in Pakistan's inflation rate to 25% in FY2024 from the elevated 29.2% seen in FY2023, attributing this to various factors, such as base-year effects and a normalization of food supply.
However, it noted that rising energy tariffs and a weakening rupee could keep inflation elevated. ADB Country Director for Pakistan, Yong Ye, emphasized the importance of policy reforms, fiscal discipline, a market-driven exchange rate, and progress in the energy sector and state-owned enterprises to revitalize economic growth.
In FY2023, Pakistan faced numerous challenges, including floods, global price shocks, and political instability, resulting in economic strain and increased inflation. The ADO report highlighted that the implementation of the economic adjustment program and smooth general elections in FY2024 are expected to boost confidence, while easing import controls could support investment.
The report also mentioned government initiatives in the agricultural sector, such as free seed distribution and subsidized credit, which are projected to enhance recovery and benefit the industrial sector. The ADB reaffirmed its commitment to fostering prosperity, inclusivity, resilience, and sustainability in Asia and the Pacific region.
