ADB urges Pakistan to resume robust reforms for economic recovery

ISLAMABAD, April 4 (Xinhua) -- The Asian Development Bank (ADB) here on Tuesday urged Pakistan to resume robust macroeconomic and structural reforms along with stability to bring economic reforms in the country, said a report.

The ADB said in its report that Pakistan's economic growth is expected to slow significantly in the ongoing fiscal year starting from July 2022 to June 2023, mainly due to last year's devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis.

According to the ADB, Pakistan's gross domestic product (GDP) growth is projected to slow to 0.6 percent in fiscal 2023 from 6 percent in the last fiscal year as the economy struggles to recover.

"The growth is forecast to rise to 2 percent in the next fiscal year, assuming the resumption of macroeconomic stability, implementation of reforms, post-flood recovery, and improving external conditions," said the report.

Highlighting the challenges to Pakistan, the ADB said that the country has a history of resilience and bouncing back, and "the ADB is committed to continuing to support Pakistan's economic recovery and development plans."

The report noted that climate change poses a grave challenge to Pakistan's economic, social, and environmental development as it ranked among the 10 most vulnerable nations worldwide in the past two decades.

The ADB predicted continued deceleration in Pakistan's industrial growth, adding, "it reflects fiscal and monetary tightening, a significant depreciation of the local currency, and higher domestic oil and electricity prices."

The report feared the country's average inflation would double from 12.2 percent recorded last fiscal year to 27.5 percent in the current fiscal year.

Pakistan joined the ADB as a founding member in 1966.