ADB Foresees Economic Growth and Inflation Easing in Pakistan Amid Reforms

According to the Asian Development Bank (ADB), Pakistan's economic reforms, supported by the International Monetary Fund (IMF), are expected to enhance growth and ease inflation. The report highlights a rebound in growth to 2.4% in 2023-24 and details a new IMF aid package. Despite positive projections, the country faces high downside risks, including external financing gaps and policy implementation lapses.

The Asian Development Bank (ADB) announced on Wednesday that Pakistan's economic reform agenda, supported by the International Monetary Fund (IMF), is projected to accelerate growth and ease inflation in the country.

In its Asian Development Outlook report for September, the Manila-based financial institution noted that growth in Pakistan had rebounded to 2.4% for the fiscal year 2023-24. The IMF's recently concluded USD 3 billion loan significantly contributed to this stability.

Pakistan and the IMF reached a three-year, USD 7 billion aid package in July, anticipated to bring substantial international financial support. The ADB report stated that once the IMF Executive Board approves the deal, it should enhance macroeconomic stability by consolidating public finances, expanding social spending, and improving the business environment.

(With inputs from agencies.)