ISLAMABAD: The Asian Development Bank (ADB) today trimmed the economic growth of Pakistan down to 3.5 percent from earlier forecast of 5pm.
According to ADB, Pakistan achieved 6% economic growth in the fiscal year (FY) 2021-22 due to higher private consumption and an expansion in agriculture, services, and industry — particularly large-scale manufacturing.
However, in 2022-23, the economic growth can slowdown due to stringent monetary policies to control inflation, fast depleting reserves and a widening deficit but also major “climate headwinds”.
The Asian Development Bank has pointed out in its new outlook for 2022-23, released on Wednesday.
“The recent devastating floods in Pakistan add profound risk to the country’s economic outlook,” said ADB Country Director for Pakistan Yong Ye.
“We hope that flood-related reconstruction and economic reforms will catalyze significant international financial support, stimulate growth, and preserve social and development spending to protect the vulnerable.”
The outlook noted that the lower projection also reflects the possibility of double-digit inflation.
Ye reiterated that ADB is preparing a package of relief, rehabilitation, and reconstruction to support the Pakistani people, their livelihoods, and climate-resilient infrastructure immediately and in the long-term.
The bank further said that the country’s economic outlook is also impacted by Islamabad’s ability to restore political stability and the continued implementation of reforms outlined under the revived International Monetary Fund (IMF) program to stabilize the economy and restore fiscal and external buffers.
