Islamabad, PTI
The Asian Development Bank (ADB) has said that Pakistan’s economic outlook remains uncertain, as political instability would remain a key risk to the sustainability of stabilisation and reform efforts, according to a source report.
The Manila-based lending agency in its ‘Asian Development Outlook’ said potential supply chain disruptions from the escalation of the conflict in the Middle East would weigh on the economy, the source reported.
It said if reforms are implemented, growth is forecast to restart gradually this fiscal year and improve slightly next year. The outlook is uncertain, with high risks on the downside. Political uncertainty that affects macroeconomic policy-making will remain a key risk to the sustainability of stabilisation and reform efforts, the ADB said in its report.
The ADB predicted 1.9 per cent growth in the fiscal year 2024 (ending on June 30, 2024) and then gradually improve to 2.8 per cent in the fiscal year 2025, driven by higher confidence, reduced macro-economic imbalances, adequate progress on structural reforms, greater political stability, and improved external conditions.
The shift back to positive growth will come from a recovery in both agriculture and industry, it said. Meanwhile, real gross domestic product (GDP) was expected to grow by 1.9 per cent in 2024, driven by a rebound in private sector investment linked to progress on reform measures and transition to a new and more stable government.
