Asian Development Bank (ADB) has projected that Pakistan’s gross domestic product (GDP) growth is likely to remain 3 percent in fiscal year 2025 compared to September’s forecast of 2.8 percent, reported 24NewsHD TV channel.
According to a report, for FY2024, growth is revised upwards to 2.5 percent following the approval of the new IMF program under the Extended Fund Facility in September which will support country’s recovery.
The production of wheat and cotton crops in Pakistan is expected to decrease this fiscal year due to heavy monsoon rains in the past months.
The estimate said inflation may remain at 10 percent during the current fiscal year which was seen at 15 percent in September. ADB had forecast a growth rate of 2.8 percent for the current fiscal year in September. Industrial output growth may accelerate with the suspension of import management measures, higher investor confidence, and easier access to foreign exchange. A more accommodative monetary policy because of faster-than-expected easing of inflationary pressures should further support economic activity through rebounding private investment.
However, growth in agriculture is expected to weaken due to the heavy monsoon downpours during July–September 2024 and flood-like conditions in parts of the country. Wheat and cotton, two of Pakistan’s five major crops, are projected to perform poorly in FY2025.