Pakistan Faces Highest Living Costs, Stagnant Economy: ADB Report

  • 15 Apr 2024

On 11th April 2024, Asian Development Bank (ADB) report unveiled Pakistan's alarming 25% inflation rate and sluggish 1.9% economic growth, painting a bleak outlook amid IMF bailout talks.

Key Points

  • Cost of Living Crisis: Pakistan tops Asia with 25% inflation rate, grappling with soaring living costs, according to latest ADB report released in Manila.
  • Economic Growth Stagnation: ADB predicts Pakistan's economy to grow at a meager 1.9%, ranking fourth lowest in Asia, amidst persistent challenges and uncertainties.
  • Gloomy Fiscal Forecast: Next fiscal year outlook remains grim, with projected 15% inflation rate and 2.8% growth rate, spelling further economic woes for Pakistan.
  • Inflationary Pressures: Despite efforts, Pakistan's inflation target of 21% set by SBP and federal government likely to be missed, fueled by tight monetary policies.
  • Stagflation Concerns: Pakistan grapples with stagflation, prolonged economic stagnation coupled with soaring inflation, posing threats to poverty alleviation efforts.
  • External Financing Challenges: ADB underscored Pakistan's significant external financing needs, highlighting risks from tight global monetary conditions.
  • IMF Bailout Talks: Finance Minister set to meet IMF MD for new bailout package amid discussions for a follow-up programme.