Pakistan needs reforms as suggested by International Monetary Fund: ADB
Business
Says country suffered from poor growth, alarming inflation last fiscal year
LAHORE (Dunya News/Reuters) – The Asian Development Bank (ADB) on Wednesday said growth in Pakistan during 20222-23 was weighed down by tighter monetary and fiscal policies to safeguard macroeconomic stability, pervasive inflation, and significant damage from flooding.
In its latest report “Asian Development Outlook (July)”, the ADB mentions that the projection for Pakistan in the previous edition (April) for the 2023-24 assumed that the government would continue with reforms as recommended by the IMF under a new policy-support programme approved on 12 July.
Meanwhile, one of the top financial institution of the world said “Developing Asia” was on track to grow faster in 2023 from a year earlier as strong consumption and investment offset the impact of weak global demand.
In an update to its regional economic outlook, the ADB kept its 2023 growth forecast for developing Asia at 4.8 per cent, but revised a tad lower its estimate for next year to 4.7pc from 4.8pc in April, reflecting risks, including from Russia's war on Ukraine.
Developing Asia consists of 46 economies in the Asia-Pacific and excludes Japan, Australia and New Zealand.
The ADB maintained its growth projections for sub-regions East Asia and South Asia, with China and India still expected to expand 5.0pc and 6.4pc this year, respectively, and 4.5pc and 6.7pc in 2024, but trimmed slightly its outlook for Southeast Asia.
Growth in Southeast Asia is now expected at 4.6pc this year and 4.9pc next year, down from 4.7pc and 5.0pc previously, the ADB said, due mainly to weaker global demand for exports.
An upside risk to the growth outlook of developing Asia is slower inflation, which has allowed most central banks in the region to hold off tightening, helping underpin domestic consumption.
The region's inflation is forecast to slow to 3.6pc this year from its previous forecast of 4.2pc, with the rate expected to decelerate further to 3.4pc in 2024.
