BAFL 46.54 Decreased By ▼ -0.21 (-0.45%)
BIPL 21.04 Increased By ▲ 0.68 (3.34%)
BOP 5.54 Increased By ▲ 0.23 (4.33%)
CNERGY 4.85 No Change ▼ 0.00 (0%)
DFML 18.82 Increased By ▲ 1.67 (9.74%)
DGKC 80.50 Increased By ▲ 1.65 (2.09%)
FABL 30.95 Increased By ▲ 1.71 (5.85%)
FCCL 20.49 Increased By ▲ 0.14 (0.69%)
FFL 9.59 Decreased By ▼ -0.07 (-0.72%)
GGL 13.94 Increased By ▲ 1.19 (9.33%)
HBL 116.96 Increased By ▲ 2.68 (2.35%)
HUBC 123.62 Decreased By ▼ -0.18 (-0.15%)
HUMNL 7.98 Increased By ▲ 0.40 (5.28%)
KEL 3.52 Increased By ▲ 0.19 (5.71%)
LOTCHEM 28.59 Increased By ▲ 0.34 (1.2%)
MLCF 42.10 Increased By ▲ 0.10 (0.24%)
OGDC 123.10 Increased By ▲ 8.99 (7.88%)
PAEL 18.82 Decreased By ▼ -0.03 (-0.16%)
PIBTL 5.71 Increased By ▲ 0.11 (1.96%)
PIOC 114.50 Increased By ▲ 0.60 (0.53%)
PPL 110.98 Increased By ▲ 11.52 (11.58%)
PRL 27.52 Increased By ▲ 0.76 (2.84%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
SNGP 70.09 Increased By ▲ 2.69 (3.99%)
SSGC 13.18 Increased By ▲ 0.58 (4.6%)
TELE 8.81 Increased By ▲ 0.26 (3.04%)
TPLP 13.65 Increased By ▲ 0.35 (2.63%)
TRG 91.94 Increased By ▲ 6.25 (7.29%)
UNITY 26.81 Increased By ▲ 0.34 (1.28%)
WTL 1.57 Decreased By ▼ -0.01 (-0.63%)
BR100 6,544 Increased By 101.5 (1.58%)
BR30 23,210 Increased By 429.3 (1.88%)
KSE100 63,918 Increased By 961.7 (1.53%)
KSE30 21,352 Increased By 348.1 (1.66%)
Pakistan

Downward revision: ADB sees Pakistan’s GDP growth to ‘recover modestly’ to 1.9% in FY24

  • Prospects closely tied to steadfast and consistent implementation of policy reforms to stabilise economy and rebuild fiscal, external buffers, it says
Published September 20, 2023

Pakistan’s gross domestic product (GDP) growth is projected to recover modestly to 1.9% in fiscal year 2023-24 from 0.3% in FY2023, with price pressures remaining elevated, the Asian Development Bank (ADB) said in a report on Wednesday.

The outlook has been revised slightly downwards from the 2% growth rate it saw in April.

 Infographic provided by ADB
Infographic provided by ADB

However, the ADB also warned that significant downside risks to Pakistan’s economic outlook in FY24 remain, including from global price shocks and slower global growth.

According to the Asian Development Outlook (ADO) September 2023, Pakistan’s adherence to an economic adjustment programme through April 2024 will be critical to restoring macroeconomic stability and the gradual recovery of the country’s growth.

“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,” said ADB Country Director for Pakistan Yong Ye.

ADB expects inflation in Pakistan to ease to 25% in FY2024 from 29.2% in FY2023

“Greater fiscal discipline, a market-determined exchange rate, and speedier progress on reforms in the energy sector and state-owned enterprises are key to reviving economic growth and protecting social and development spending.”

In FY23, Pakistan’s economy remained engulfed in various challenges including severe floods, global price shocks, and political instability, causing growth to weaken and inflation to rise.

As per the ADO, the implementation of the economic adjustment programme and a smooth general election in FY2024 are expected to boost confidence, while easing import controls is likely to support investment.

“Favorable weather conditions and the government’s relief package of free seeds, subsidised credit, and fertilisers are expected to support a recovery in agriculture. This, in turn, will help the industry, which will also benefit from the increased availability of critical imports,” the report said.

ADB expects inflation in Pakistan to ease to 25% in FY2024 from 29.2% in FY2023, as base-year effects set in, food supply normalises, and inflation expectations moderate.

“However, sharp increases in energy tariffs under the economic adjustment programme, and the continued weakening of the rupee will keep inflationary pressures elevated,” it noted.

Comments

1000 characters
Ahmed Sher Sep 20, 2023 12:35pm
32000ka liter mi
thumb_up Recommended (0) reply Reply
U2 Sep 20, 2023 01:01pm
"Downward revision: ADB sees Pakistan’s GDP growth to ‘recover modestly’ to 1.9% in FY24" Its a forecast...based on assumptions...the ground realities paint a very painful reality!
thumb_up Recommended (0) reply Reply
Asad Sep 20, 2023 01:39pm
Pakistan will grow at 9% in 2025 thanks to great leadership of Imran Khan, the next PM
thumb_up Recommended (0) reply Reply
BhK Sep 20, 2023 03:06pm
@Asad, Lets hope if the compromised try to do anything hanky panky masses will BBQ them!
thumb_up Recommended (0) reply Reply
Fatima Sep 20, 2023 04:41pm
So a contraction, taking into account population growth
thumb_up Recommended (0) reply Reply
Kareem Sep 20, 2023 04:44pm
@Asad, army put imran in jail and cannot contest election. How will he become PM?
thumb_up Recommended (0) reply Reply

Downward revision: ADB sees Pakistan’s GDP growth to ‘recover modestly’ to 1.9% in FY24

Three projects: ADB approves $659m in financing

New FAB ED: govt initiates appointment process

FWBL sell-off: Minister briefed about status of accounts

Digitising budget process: Shamshad chairs IMF mission meeting

‘Illegal’ LCs, forex market speculation: MoF set to share list of banks with SIFC today

Loss-making Discos: FD opposes PD’s proposal

Power sector: Nepra backs transition from Libor to ‘SOFR’

‘Delayed’ CASA-1000 project: World Bank reluctant to arrange funds

CPEC 10th anniversary: there exists strong commitment to accelerate pace of ongoing projects

Customs values of various goods changed