Pakistan troubled by inflation, economic situation also deteriorating, ADB blames political instability
The Asian Development Bank (ADB) has blamed Pakistan's political instability and described its economic condition as poor. The gross domestic product (GDP) of the neighbouring country is estimated to be 1.9 per cent in the financial year 2024, which has seen an improvement as compared to the previous financial year. Due to political instability, inflation in the country is expected to reach its peak.
Asian Development Bank (ADB) in its annual report has described the economic condition of Pakistan as deteriorating. In the report, it has been estimated for the neighbouring country the gross domestic product (GDP) could be 1.9 per cent in the financial year 2024. There may be a slight improvement in this compared to the financial year 2023, which was -0.2 per cent last year.
ADB has claimed in its report that Pakistan's economic growth rate is likely to be 2.8% in this financial year. In the Outlook report, the political instability there has been held responsible for this condition of Pakistan.
The Development Outlook Report from the Asian Development Bank has indicated that Pakistan's inflation rate is expected to peak shortly. The inflation rate for this fiscal year is predicted to be approximately 25%. There is a counterargument, though, that inflation may decrease if Pakistani politics remain stable.
A report on inflation in India and other Asian countries includes estimates. India's inflation rate for the current fiscal year is predicted by the report to be 4.6%. Bhutan is predicted to have 4.5% inflation, Bangladesh 8.4%, the Maldives 3.2, Sri Lanka 7.5, and Nepal 6.5% inflation at the same time.
While ADB said that Pakistan's economy is in bad shape, its estimate regarding India is the opposite. The report says that India will have the fastest economy in Asia.
The report has estimated that India's growth rate will be 7 per cent in fiscal year 2024 and 7.2 per cent in fiscal year 2025. At the same time, China's annual growth rate in these two years is said to be 4.8 per cent and 4.5 per cent respectively.
