In a report released on Wednesday, the Asian Development Bank (ADB) predicted that Pakistan’s economic growth will slow to 3.5% in this fiscal year 2022–2023 due mostly to disastrous floods, tighter monetary policy, and actions taken to address significant fiscal and external imbalances.
According to the Asian Development Bank (ADB), private consumption and expansion in the agricultural, service, and industrial sectors—particularly large-scale manufacturing—were the main drivers of Pakistan’s GDP growth in 2021–2022.
However, the report stated that in FY23, “ADB’s reduced growth prediction also reflects double-digit inflation—along with climate headwinds and Pakistan’s crucial policy measures.” In the report, ADB Country Director for Pakistan Yong Ye was reported as saying, “The recent severe floods in Pakistan add substantial risk to the country’s economic outlook.”
This development comes after flooding that has affected roughly 33 million people in the nation and caused damages worth an estimated $30 billion as a result of exceptional monsoon rains in south and southwest Pakistan and glacial melt in the country’s northern regions.
According to the most recent data, private consumption increased 10% in Pakistan in FY22, which helped to improve job conditions and raise household incomes.
The growth in agriculture output in FY22 was 4.4%, with larger harvests and higher livestock production providing the impetus. The growth in agriculture output in FY22 was 4.4%, with larger harvests and higher livestock production providing the impetus.
