ISLAMABAD, Sept. 21 (Xinhua) -- Pakistan's economy is expected to slow to 3.5 percent in fiscal year (FY) 2023 running from July 2022 to June 2023 amid devastating floods, policy tightening, and critical efforts to tackle sizable fiscal and external imbalances, the Asian Development Bank (ADB) said Wednesday.
This slowdown would occur "even as growth in FY 2022 is expected to have reached 6 percent," the ADB said in a report.
According to the Asian Development Outlook (ADO) 2022 Update, gross domestic product (GDP) growth in Pakistan in FY 2022 was propelled by higher private consumption and an expansion in agriculture, services, and industry, particularly large-scale manufacturing.
But in FY 2023, with climate headwinds and Pakistan's critical policy efforts, ADB's lower growth projection also reflects double-digit inflation. The latest report is an update to ADB's annual flagship economic publication.
The recent devastating floods in Pakistan have added profound risk to the country's economic outlook, said ADB Country Director for Pakistan Yong Ye.
"We hope that flood-related reconstruction and economic reforms will catalyze significant international financial support, stimulate growth, and preserve social and development spending to protect the vulnerable. ADB is preparing a package of relief, rehabilitation, and reconstruction to support people, livelihoods, and infrastructure immediately and in the long term," Ye added. ■
