ADB predicts hike in Pakistan’s inflation

ISLAMABAD: The Asian Development Bank has released its Asian Development Outlook report, which predicts a 7% decrease in Pakistan’s debt volume.

According to the report, the debt volume is expected to decrease from 77% to 70% of the country’s GDP.

The report also states that 62% of Pakistan’s revenue will be spent on debt repayment in the current fiscal year. Additionally, the report predicts that inflation will remain high in Pakistan in the current fiscal year.

In the previous fiscal year, Pakistan’s growth rate was 2.4%, with agriculture playing a significant role in economic growth. The report also notes that inflation in Pakistan has decreased from 38% to 11.8%, resulting in a decrease in policy rates.

The report highlights the need for Pakistan to address its debt and inflation issues to achieve sustainable economic growth. The Asian Development Bank’s report provides valuable insights into Pakistan’s economic outlook and offers recommendations for improvement.

READ: Inflation on the rise in Pakistan after budget 2024-25

It is pertinent to mention here that the first week of the new fiscal year 2024-25 after the budget brought a surge in inflation, with a 1.28 percent increase in the weekly inflation rate.

As per the Pakistan Bureau of Statistics (PBS) weekly report, the overall annual inflation rate has reached 23.59 percent.

The PBS’s report showed that prices of 29 essential items increased in the past week, while prices of five essential items remained stable and 17 items saw a decrease in prices.

As per the report, tomato prices soar by 70.77 percent in the last week, with the average price per kilogram exceeding Rs 200.