The Asian Development Bank (ADB) has forecasted high inflation in Pakistan for this year, according to its latest Asian Development Outlook report.
While the inflation rate is anticipated to stay elevated, the report indicates a potential decrease in Pakistan's debt burden.
The ADB's report highlights that Pakistan's economic growth rate was 2.4 percent in the last fiscal year, with agriculture playing a significant role in this growth.
Despite the persistent inflation, the rate has decreased from 38% to 11.8%, leading to a reduction in the policy rate.
The report also points out that the debt size within Pakistan's economy could be reduced by 7 percent. However, 62 percent of the country’s revenues in the current fiscal year will be allocated for debt repayment.
Furthermore, the ADB projects a growth rate of 5 percent for developing Asian countries in 2024, slightly dipping to 4.9 percent in 2025. India is currently leading the region with an impressive 7 percent economic growth rate.
