Islamabad: The Asian Development Bank (ADB) has stated that Pakistan’s economy could stabilize with the holding of elections. According to an ADB report, during the fiscal year 2024, Pakistan is expected to face inflation and economic challenges, with the overall inflation rate reaching up to 25%. However, the upcoming elections are expected to instill confidence in Pakistan’s economy.
The report notes that there is concern about rising inflation due to increases in energy prices and depreciation of the rupee during the fiscal year, while the current fiscal year anticipates Pakistan’s economic growth rate to remain at 1.9%. To achieve stability in economic growth, the ADB report emphasizes the need for Pakistan to implement reforms in its economic system, market-based exchange rates, and the power sector.
The report by the Asian Development Bank also underscores the necessity for reforms in government-owned entities to ensure a stable economic growth trajectory for Pakistan. Last fiscal year, Pakistan faced challenges such as floods and political instability, leading to inflation and reduced growth rates. However, Pakistan’s partnership with the Asian Development Bank will continue for stable growth.