The Asian Development Bank (ADB) forecast that Pakistan’s gross domestic product (GDP) growth will moderately rebound to 1.9% in fiscal year 2023–2024 from 0.3% in FY2023, according to a report on the region’s economic outlook released on Wednesday.
Pakistan’s GDP to rebound: The report anticipates that inflation in Pakistan would decrease from 29% to 25% in the current fiscal year, following increased economic confidence expected after the general elections in 2023–2024.
However, the research noted that severe inflationary pressure will persist because of rising energy costs and the rupee’s depreciating value.
Yong Ye, the ADB’s Country Director for Pakistan, said, “The steadfast and consistent implementation of policy reforms to stabilize the economy and rebuild fiscal and external buffers closely ties Pakistan’s economic prospects.”
The economic stability of Pakistan rests on ongoing policy reforms, according to the ADB Country Director: “Increased global prices and slow economic growth are also a threat to the Pakistani economy.”
“The anticipated rebound in agriculture is due in part to favorable weather conditions and the government’s rescue package of free seeds, subsidized financing, and fertilizers.” As a result, the industry will profit and more essential imports will be available, according to the report.