Pakistan Inflation to hit high of 25% this fiscal year. Asian Development Bank has released the annual outlook report 2024.
According to the report, Pakistan will have to depend on international financial institutions and friendly countries for external payments, while inflation in the country is estimated to be at a high level of 25% this fiscal year.
In the report, Pakistan’s growth rate is predicted to be 1.9 percent this fiscal year.
The report states that political instability is a major challenge for economic recovery and reforms.
The report states that Pakistan’s economy has shrunk due to political uncertainty and floods. Last year, inflation in Pakistan was higher than in the last 5 decades. If reforms are implemented, the economic recovery process should start from this year.
According to the report, agricultural production and industrial sector are expected to improve in the current financial year, while the growth in the construction sector has been affected by cost increases and tax increases.
The report states that inflation is expected to decrease in the next fiscal year, which will reach 15%, the prices of food items will stabilize next year, while inflation will increase due to the increase in energy prices under the IMF program.
According to the report, the growth rate of the region is estimated to be 4.9% due to the increase in local demand and development, exports and tourism in Asian countries, the inflation wave in the region will decrease.
According to the report, China’s growth rate is expected to be 4.8% while India’s growth rate is expected to be 7%.