Karachi: Asian Development Bank (ADB) has expressed optimism regarding Pakistan’s economic prospects, highlighting that reform programme and smooth conduct of upcoming general elections are likely to restore investor confidence in country’s economy. 

ADB Country Director for Pakistan Yong Ye said that country’s economic prospects are closely tied to steadfast and consistent implementation of policy reforms to stabilise economy and rebuild fiscal and external buffers.

“Greater fiscal discipline, market-determined exchange rate and speedier progress on reforms in energy sector and state-owned enterprises are key to reviving economic growth and protecting social and development spending,” he added.

Regional financial institution, in its report released underscored significance of Pakistan’s commitment to an economic adjustment programme until April 2024, which is crucial for reestablishing macroeconomic stability and facilitating gradual resurgence of economic growth.

According to Asian Development Outlook (ADO) for September 2023, Pakistan’s gross domestic product (GDP) growth is expected to experience modest recovery, increasing from 0.3 percent in FY2023 to 1.9 percent in FY2024, although inflationary pressures are expected to persist. However, significant downside risks to outlook remain, including global price shocks and slower global growth.

ADB also anticipates decrease in Pakistan’s inflation trends to 25 percent in FY2024 from elevated 29.2 percent experienced in FY2023 in wake of base-year effects setting in, normalisation of food supply and moderation in inflation expectations.

“However, sharp increases in energy tariffs under economic adjustment programme and continued weakening of rupee will keep inflationary pressures elevated,” it added.

Published in The Daily National Courier, September, 21 2023

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