April 11, 2024
1 min read

High Downside Risks for Pakistan’s Economy: ADB

The ADB said that Pakistan’s growth is projected to remain subdued in FY2024 and pick up in FY2025, provided economic reforms take effect….reports Asian Lite News

The Asian Development Bank (ADB) has said that Pakistan’s economic outlook remains uncertain with high risks on the downside.

“Political uncertainty that affects macroeconomic policy-making will remain a key risk to the sustainability of stabilisation and reform efforts,” ADB said.

On the external front, potential supply chain disruptions from the escalation of the conflict in the Middle East would weigh on the economy. With Pakistan’s large external financing requirements and weak external buffers, disbursement from multilateral and bilateral partners remains crucial. However, these inflows could be hampered by lapses in policy implementation, ADB said in its outlook.

Further IMF support for a medium-term reform agenda would considerably improve the market sentiment and catalyse affordable external financing from other sources, ADB said.

The ADB also said that Pakistan’s growth is projected to remain subdued in FY2024 and pick up in FY2025, provided economic reforms take effect. Real GDP is projected to grow by 1.9 per cent in FY2024, driven by a rebound in private sector investment linked to progress on reform measures and transition to a new and more stable government.

Pakistan’s economy shrank as floods, political uncertainty, and disrupted external support caused public investment to plunge and private investment and industry to contract. Inflation reached a five-decade high as supply disruption and currency depreciation propelled increases in food and energy prices, ADB said.

ALSO READ: US transfers seized weapons from Iran to Ukraine

Previous Story

Lindy Cameron Named British Envoy to India

Next Story

Understanding Pakistan’s Struggle with Terrorism

Latest from -Top News

Trump due in Saudi, UAE amid new tariffs

The GCC bloc, which includes the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain, has been hit with a 10% tariff, placing them among the lower-tiered rates US President Donald Trump has

China Says US Tariff Hikes Violate WTO Rules

China is among the hardest-hit, facing a 34 per cent levy—part of what Washington describes as reciprocal measures aimed at rebalancing trade deficits and curbing unfair trade practices China has strongly condemned

Modi Due in Sri Lanka to Cement Ties

Indian High Commissioner to Sri Lanka Santosh Jha described the visit to island nation as “very important” and likely will set a fresh agenda for bilateral cooperation Prime Minister Narendra Modi’s visit

India Acts as ‘First Responder’ in Myanmar: Jaishankar

Jaishankar took the opportunity to underscore India’s swift humanitarian response, highlighting Operation Brahma, which was launched to assist those affected by the earthquake. External Affairs Minister S. Jaishankar on Thursday expressed India’s
Go toTop

Don't Miss

Next country on Taliban list is Pakistan

Taliban fighters believe that the current government set-up in Pakistan

Pak Army promotes Hindu officer as Lt Colonel

Extending his congratulations, Pakistan Information Minister Fawad Chaudhry called the