Pakistan's economy improving, inflation declining: ADB

Islamabad: The Asian Development Bank (ADB) has declared Pakistan's economy to be better for the current financial year, saying that the decline in the inflation rate and macroeconomic stability indicators are positive.

ADB's outlook report on Pakistan's economy stated that Pakistan's economic growth rate is expected to reach 2.4 percent in the fiscal year 2024 and 2.8 percent in the fiscal year 2025. Growth is subject to policy continuity following the reform agenda.

The outlook report states that a reduction in government expenditure, promoting the private sector will also be a condition for improvement in the trend of Pakistan's economy. The inflation rate was at the level of 29.2 percent till 2023 which has decreased to 23.4 percent in 2024.

According to ADB, inflation remained high in the first half of the fiscal year 2024, while in the second half, the inflation rate in the country decreased, after which other positive indicators led to a decrease in interest rates.

According to the Asian Development Bank, inflation in Pakistan is likely to decrease further due to the stable interest rate and exchange rate, while the inflation rate in Pakistan is expected to decrease by 15 percent in the fiscal year 2025.