Pakistan Economy to grow by Just 3.5%: Asian Development Outlook Update Report

Economic outlook of Pakistan hinges upon the restoration of political stability and continued availability of foreign loans, said the Asian Development Bank (ADB) on Wednesday in a report that revealed the Pakistani rupee as the third worst performing currency in Asia.

According to The Asian Development Outlook Update report, Pakistan’s economy could still grow by 3.5% despite the floods and its inflation rate could accelerate to 18% – two key projections for which the government had given a gloomy forecast.

The projected economic growth rate of 3.5% is the second-lowest in South Asia the 18% inflation rate is the second highest in this region, although the actual growth rate may remain lower and inflation higher than the ADB forecast.

According to the report, the economic outlook will also depend on the continued availability of adequate external financing under challenging domestic and global economic and political conditions.