In Islamabad, the Asian Development Bank (ADB) has asserted that the implementation of the economic adjustment program by April 2024 is unavoidable. However, the ADB has also indicated that inflation is expected to decrease from 29.2 percent to 25 percent within the current year.
The ADB has issued an economic outlook report on Pakistan’s economy, in which it forecasts that persistent high inflationary pressures will persist due to rising energy prices and the depreciating value of the rupee. The report anticipates Pakistan’s GDP to grow by 1.9 percent in the year 2024.
According to the report, adhering to this program is imperative for achieving macroeconomic stability and initiating a gradual economic recovery. Furthermore, the relaxation of import restrictions is likely to boost investment, though the report notes that the escalating global prices pose a threat to Pakistan’s economy, leading to sluggish economic growth.
The Country Director of ADB emphasized the critical importance of Pakistan’s economic stability being contingent on continuous policy reforms, enhanced fiscal discipline, and the adoption of a market-based exchange rate system.
Additionally, the ADB has called for expeditious reforms in the energy sector and other governmental institutions. Swift progress in these reforms is deemed essential not only for revitalizing economic growth but also for preserving social and developmental expenditures.