Pakistan GDP will be 2% in 2024: Asian Development Bank (ADP) has forecasted Pakistan’s economic growth for the FY2024 (ends 30 June 2024) .
However, in FY2023 (ends 30 June 2023), Pakistan’s economic growth is expected to be 0.6% only. The devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis are key reasons of this lower growth, ADB said. Â
ADB has published the Asian Development Outlook (ADO) report in April 2023. In this report ADB has forecasted that Pakistan’s gross domestic product (GDP) growth is projected to slow to 0.6% in FY2023. However, it was 6% in FY2022. 
In ADO report it is also forecasted that growth will rise to 2% in FY2024 considering the rapid stability of macroeconomics, fast implementation of reforms, quick recovery of flood-hit areas, and instant improving of external conditions.
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The experts have added that the persistently high rates of food items are result of domestic food shortage. In countries like Pakistan, the food prices are soured sue to devastating floods in 2022. The rupee depreciation is another major factor of recent inflation hike.
In addition to above, a few other key reasons are government’s policies and restriction on imports has delayed imports , disrupted the domestic supplies. Pakistan facing highest Food Inflation in the History and Pakistan need to plan come out of this dig.
The underlying causes of price increases are stagnant and fluctuating agriculture productivity, inefficient use of key natural resources particularly water, and limited innovation, as well as weather-related shocks.Â
ADB Country Director for Pakistan Yong Ye reiterated that ADB is committed to continuing to support Pakistan’s economic recovery and development plans.”Â
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It has been highlighted in the report that Pakistan’ economic and social growth has been seriously dented due to climate change.
Pakistan is among the top 10 countries that are facing serious impacts of global warming and climate change according to the Global Climate Risk (GCR) Index. Pakistan GDP will be 2% in 2024: ADB report has revealed
In the last 2 decades, Pakistan has been facing extreme weather resulting in abrupt and hazardous rains resulting in catastrophic floods and losses in agriculture, infrastructure, and the economy.Â
In the ADO report it is forecasted that the industrial growth of country will continue to decline in FY2023. Consequently, a significant depreciation of the local currency are expected that will further result in higher domestic oil and electricity prices.Â
 The fiscal deficit is forecasted to be around 6.9% of GDP in FY2023. However, IMF program can be a key parameter here. If the program remains on track, the deficit will likely continue to shrink in the medium term as measures to mobilize more revenues.
It has been also forecasted that average inflation will be more than double from 12.2% in FY2022 to 27.5% in FY2023. It is also projected that Pakistan will continue to experience strong inflationary pressures for the rest of FY2023. Â
