Pakistan Sees Sharp Decline in Inflation; Price Stability Expected This Year: ADB Report

Islamabad: The Asian Development Bank (ADB) has reported a significant drop in inflation in Pakistan during the last fiscal year, with expectations of continued price stability in the current fiscal year.
In its July edition of the Asian Development Outlook report, the ADB noted that rising tariffs in the United States may lead to a decline in exports, while global trade uncertainty and weak domestic demand are expected to impact the growth rates of regional economies. The overall growth forecast for the region stands at 4.7% for this year.
The report also warned that various global conflicts could further disrupt trade and increase energy costs. It highlighted that a steeper-than-expected decline in China’s property market may negatively affect global commerce.
Despite these challenges, inflation across the region is expected to remain around 2%, largely due to increased agricultural output. However, new U.S. tax policies on remittances could pose challenges for Asian countries, with Pakistan, India, and the Philippines likely to be the most affected.
For Pakistan specifically, the ADB observed a substantial decline in inflation during the previous fiscal year. The report projects continued economic stability, with positive growth expected in the industrial and services sectors. Pakistan’s GDP growth rate was recorded at 2.7% last year, and the growth target of 4.2% for the current fiscal year remains unchanged.