ISLAMABAD (Dunya News) – The Asian Development Bank (ADB) said on Wednesday that Pakistan’s economic growth witnessed improvement in the last fiscal year to 2.4% which could soar to 2.8% in the ongoing financial year, adding that any long-term sustainable improvement was hinged on continued implementation of robust economic reforms.
According to the ADB’s Asian Development Outlook September 2024, Pakistan’s financial recovery was backed by higher domestic consumption from increased agriculture income and overseas Pakistani’s remittances.
It linked strengthening of macroeconomic stability and the continued recovery of growth with adherence to economic reform plan, with downside risks remaining in store.
“Pakistan’s economic prospects are closely tied to the steadfast and consistent implementation of policy reforms to stabilize the economy and rebuild fiscal and external buffers. It is imperative that Pakistan continues to consolidate public finances, expand social spending and protection, reduce fiscal risks from state-owned enterprises, and improve the business environment to encourage growth led by the private sector,” said ADB Country Director for Pakistan Yong Ye in a statement.
Mentioning the prospects of the private investment, the ADB said the implementation of the economic adjustment program in the ongoing fiscal year was expected to support private investment which required more favorable macroeconomic conditions, including hassle-free access to foreign exchange, which would also benefit manufacturing and services.
It also deemed a well-regulated monetary policy necessary for keeping inflation at about 15%.