ADB lowers GDP growth forecast to 4pc

ISLAMABAD: The Asian Development Bank (ADB) has lowered the GDP growth forecast for Pakistan to 4 per cent and stated that inflation will be standing at higher than expected levels during the current fiscal year.

“High prices of imported food and energy products will widen the trade deficit, worsening external imbalances and exerting pressure on the local currency,” the ADB warned in its Asian Development Outlook (ADO) 2022 released here on Wednesday. Pakistan has envisaged a GDP growth rate of 4.8 per cent for the current fiscal year and now authorities were expecting it to touch the 5 per cent mark.

The ADO 2022 states that Pakistan’s GDP growth is projected to moderate to 4.0pc in FY2022 and to 4.5pc in FY2023. Slower growth in the current fiscal year reflects the government reactivating its stabilization programme under the International Monetary Fund Extended Fund Facility to narrow the current account deficit, raise international reserves, and cut inflation.