The Asian Development Bank (ADB) has forecasted Pakistan's GDP to increase to 1.9% in FY24 but has issued a warning regarding persistent political instability as a significant risk to implementing necessary reforms.
ADB emphasizes that Pakistan's commitment to an economic adjustment program until April 2024 is crucial for restoring stability and achieving gradual growth recovery. The report predicts a decrease in inflation from 29% to 25% in the current fiscal year, driven by increased economic confidence following the 2023-24 general elections.
The success of Islamabad's economic prospects is closely tied to consistent policy reform implementation. ADB's Country Director highlights that global price surges and sluggish economic growth pose threats to Pakistan's stability, contingent on ongoing policy reforms.
Additionally, favorable weather conditions and government relief measures, such as free seeds, subsidized credit, and fertilizers, are expected to support agricultural recovery.
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