KARACHI: Pakistan’s economy is expected to grow by 2.5% in the current fiscal year, supported by ongoing reforms and improved macroeconomic stability, the Asian Development Bank (ADB) said on Wednesday.
Pakistan has undertaken stringent economic reforms following a prolonged financial crisis that forced it to seek loans from the International Monetary Fund (IMF) over the past two years.
Since then, macroeconomic indicators have improved significantly, though the government acknowledges the need for further consolidation through policies aimed at boosting exports and attracting investment.
ADB’s flagship economic publication, the Asian Development Outlook, also maintained in its April edition the country’s economic position has strengthened under the IMF program.
“Pakistan’s economy has benefitted from improved macroeconomic stability through robust reform implementation in areas such as tax policy and energy sector viability,” said ADB Country Director for Pakistan Emma Fan. “Sustained implementation of policy reforms is vital to buttress this growth trajectory and fortify fiscal and external buffers.”
The Manila-based lender said, “Pakistan’s real gross domestic product (GDP) is expected to grow by 2.5% in FY2025, the same growth rate from FY2024.”
It also projected growth to rise to 3% in FY2026.
The report noted average inflation was expected to decline significantly to 6% in FY2025 and further to 5.8% in FY2026.
However, it warned that female labor force participation remained low in Pakistan compared to regional and peer countries, adding that enabling more women to work outside the home could boost productivity and output while advancing female empowerment.
ADB forecasts 2.5% growth for Pakistan this fiscal year as economic reforms take hold
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ADB forecasts 2.5% growth for Pakistan this fiscal year as economic reforms take hold
- The Manila-based lender says the country’s projected growth is likely to rise to 3% in the next fiscal year
- ADB maintains female labor force participation remains low in Pakistan compared to regional countries
Afghan interior minister welcomes Pakistani scholars for ‘positive’ remarks about Kabul
- Pakistani religious scholars on Dec. 23 called for easing tensions between Islamabad and Kabul, resumption of trade
- Sirajuddin Haqqani says Afghanistan is committed to regional peace, Afghans have “no intentions to threaten anyone”
PESHAWAR: Afghanistan’s Interior Minister Sirajuddin Haqqani recently thanked Pakistan’s Deputy Prime Minister Ishaq Dar and religious scholars from the country for expressing positive statements for Kabul despite tensions between the two countries.
A meeting of religious scholars in Pakistan on Dec. 23, attended by Jamiat Ulama-e-Pakistan political party head Maulana Fazl-ur-Rehman, called for easing tensions between the two states. The scholars also called for allowing resumption of trade and movement of people between Pakistan and Afghanistan.
Pakistani news media outlets reported on Saturday that Dar, who is also Pakistan’s foreign minister, praised Haqqani’s earlier statement in which the Afghan minister stressed resolving tensions between Islamabad and Kabul through dialogue.
In a video statement on Sunday, Haqqani said Afghanistan is committed to peace and stability in the country and the region, adding that Afghans have “no intentions to threaten anyone.” He appreciated Rehman and religious scholar Mufti Taqi Usmani for speaking in a “positive” manner about Afghanistan in the Dec. 23 meeting.
“We are thankful and grateful for their approach and views,” Haqqani said.
“Similarly, we really appreciate the positive remarks by Foreign Minister Ishaq Dar, who spoke in a positive way about Afghanistan.”
The Afghan minister’s statement comes in the backdrop of increased tensions between Afghanistan and Pakistan amid a surge in militant attacks in the latter’s territory.
Pakistan blames Afghanistan’s government for facilitating attacks by the Pakistani Taliban or TTP group. Islamabad accuses Kabul of allowing TTP militants to take shelter in sanctuaries in Afghanistan from where they carry out attacks targeting Pakistan.
Kabul denies the charges and says it cannot be held responsible for security lapses and challenges in Pakistan.
The two countries engaged in fierce border clashes in October that led to the killings of dozens of soldiers and civilians on both sides. Pakistan and Afghanistan subsequently agreed to a temporary ceasefire and have held three rounds of peace talks that remained inconclusive.
Tensions persist as Pakistan has vowed to go after militants even in Afghanistan that threaten the lives of its citizens. Afghan officials have warned Pakistan of retaliation if it attacks Afghanistan.
