Asian Development Bank (ADB) says that 62% of Pakistan’s revenue will be allocated to debt repayment in the current fiscal year.
ISLAMABAD: (UrduPoint/Pakistan Point News-July 17th, 2024) The Asian Development Bank (ADB) has released its Asian Development Outlook report, projecting a significant decrease in Pakistan’s debt volume by 7%. According to the report, the debt volume is expected to drop from 77% to 70% of the country’s GDP.
The ADB , however, predicted that inflation would remain high in Pakistan during this period.
The report also highlights that 62% of Pakistan’s revenue will be allocated to debt repayment in the current fiscal year.
Last fiscal year, Pakistan experienced a growth rate of 2.4%, with the agriculture sector significantly contributing to this growth. The report also noted a decrease in inflation from 38% to 11.8%, leading to a reduction in policy rates.
The ADB’s report emphasized the need for Pakistan to address its debt and inflation challenges to achieve sustainable economic growth. It offers valuable insights and recommendations for improving Pakistan’s economic outlook.
Rising Inflation in Pakistan Post Budget 2024-25
In related news, the first week of the new fiscal year 2024-25 has seen a surge in inflation, with a 1.28% increase in the weekly inflation rate, according to the Pakistan Bureau of Statistics (PBS).
The overall annual inflation rate has now reached 23.59%.
The PBS weekly report indicated that prices of 29 essential items have increased in the past week, while five items have remained stable and 17 items have seen a decrease in prices. Notably, tomato prices have soared by 70.77% in the last week, with the average price per kilogram exceeding Rs 200.
Key Takeaways:
Debt Reduction: ADB projects a 7% decrease in Pakistan's debt volume.
Revenue Allocation: 62% of revenue will be spent on debt repayment.
Inflation Trends: High inflation is expected to persist.
Economic Growth: Last fiscal year saw a 2.4% growth rate, driven by agriculture.
Price Surges: Significant increases in essential item prices, notably tomatoes.
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