The Asian Development Bank (ADB) has declared Pakistan as the second most expensive country in the South Asian region.
The ADB projected that Pakistan’s inflation rate will continue high in the upcoming months and that the value of the Pakistani rupee may decline even further in the supplement report titled “Asian Development Assessment 2022 Supplemental.”
The economic growth in South Asia has slowed down as a result of the floods, and the projection predicts that energy prices in Pakistan will likely rise. It also notes that the floods in Pakistan and Bangladesh have impacted economic growth.
“Flood disruption and damage are expected to slow down real GDP growth in combination with a tight monetary policy, high inflation, and an unconducive global environment,” the ADB said in a regular supplement to the Asian Development Outlook (ADO) 2022.
According to the report, the floods severely harmed agriculture, particularly wheat and livestock, and significantly hurt Pakistan’s economy.
The ADB projected inflation for South Asia — comprising of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka — to increase from 8.1pc in September to 8.2pc in the recent December update.
