Pakistan’s economic growth is predicted to reach 4% in fiscal year 2022 (FY22), as commercial activity gradually restarts in the second year of the epidemic, according to a report released by the Asian Development Bank (ADB).
According to the Asian Development Outlook (ADO) 2021 Update, Pakistan’s economy is predicted to continue improving in FY2022. It is backed up by increased private investment, improved corporate activity, a consistent vaccine deployment, and fiscal stimulus measures for FY2022.
Relevant Read: SBP imposes penalties worth Rs525.244 on major banks
Nonetheless, enormous uncertainty about the pandemic’s progress clouds the economic picture in Pakistan and around the world.
“Pakistan’s economy is on the mend, aided by encouraging growth in the industry and services sectors,” said Yong Ye, ADB Country Director for Pakistan.
Inflation in Pakistan is expected to slow to 7.5 percent in FY2022, unchanged from the forecast in last year’s ADO. The estimate is predicated on food costs decreasing as supply chains strengthen and production increases as a result of the government’s Agriculture Transformation Plan.
Other product price increases are likely to moderate as well, thanks to tax relief in the FY2022 budget.