Islamabad (GNP): Pakistan’s gross domestic product (GDP) growth is projected to have recovered modestly to 2.4 percent in FY2024, to be followed by 2.8 percent in FY2025 accompanied by a further decline in inflation.
This was highlighted in a recent report of Asian Development Bank released on Wednesday.
The average headline inflation slowed to 23.4 percent in FY2024 from 29.2 percent in FY2023 and is expected to ease further to 15 percent in FY2025, the report anticipated.
The progress, according to ADB, is due to the implementation of a well-regulated monetary policy, reduced exchange rate volatility, and a stable outlook for international food prices.
According to the Asian Development Outlook, an update to ADB’s flagship economic publication, Adhering to the country’s economic reform program will be critical to strengthening macroeconomic stability and the continued recovery of growth, even as downside risks remain.
Though Inflation remained elevated in the first half of FY2024 but subsided afterwards.
This reduction was mainly attributed to a decline in food price inflation, which was driven by increased agricultural production.
“Pakistan’s economic growth rebounded in fiscal year 2024 (ended 30 June 2024), supported by higher domestic consumption from increased agriculture income and workers’ remittances”, the report said.
