Pakistan's economic growth to remain lower in FY23, says ADB report

The Asian Development Bank (ADB) has estimated Pakistan’s economic growth up to 2pc in the current ongoing FY2022-23, in the wake of last year’s devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis.

According to the Asian Development Outlook (ADO), Pakistan’s economic growth remained slow in the FY2022-23 and witnessed a decrease of 0.6per cent as the economy struggles to recover.

Growth is forecast to remain up to 2pc in 2022-23, the report said.

“Pakistan’s economy continues to face strong headwinds while last year’s catastrophic floods have exacerbated the economic and financial challenges,” said ADB Country Director for Pakistan Yong Ye.

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The ADB report notes that climate change poses a grave challenge to Pakistan’s economic, social, and environmental development. According to the Global Climate Risk Index, the country has ranked among the 10 most vulnerable nations worldwide in the past 2 decades.

Average inflation is projected to more than double from 12.2 percent in FY2021-22 to 27.5 percent this fiscal year.