Pakistan 2nd most expensive country in South Asia: ADB

ISLAMABAD: The Asian Development Bank (ADB) on Wednesday declared Pakistan as the second most expensive country in the South Asian region.

The Asian Development Bank (ADB) has released its outlook for the year 2022, predicting that the inflation rate in Pakistan will remain high in the coming months and the value of Pakistani rupee may fall further. The inflation rate in Pakistan is 26.6%, reported local media. 

According to the forecast, energy is likely to become more expensive in Pakistan and the rate of economic growth in South Asia has slowed down due to floods adding that the floods in Pakistan and Bangladesh have affected economic growth. The report further stated that the floods have caused significant damage to Pakistan’s economy, causing massive damage to agriculture, especially wheat and livestock.

Without sharing the revised real GDP growth and inflation target for Pakistan because of lack of clarity, the Asian Development Bank (ADB) stated that flood damages might slow down economic growth in combination with high inflation, tight monetary policy and an unconducive global environment.

“Flood disruption and damage are expected to slow down real GDP growth in combination with a tight monetary policy, high inflation and an unconducive global environment,” the ADB said in a regular supplement to the Asian Development Outlook (ADO) 2022, released on Wednesday.