Pakistan's economy to slowdown in FY23: ADB.

The Asian Development Bank has predicted Pakistan's economy to slow down to 3.5% in the fiscal year 2023 amid devastating floods, policy tightening, and critical efforts to tackle sizable fiscal and external imbalances, the Asian Development Bank (ADB) said in a report released Wednesday.

In a report released on Wednesday by the ADB, the slowdown in FY23 (ending on June 30, 2023) has been predicted even as growth in FY22 is expected to have reached 6.0%.

According to the Asian Development Outlook (ADO) 2022 Update, the gross domestic product (GDP) growth in Pakistan in FY22 was propelled by higher private consumption and an expansion in agriculture, services, and industry-particularly large-scale manufacturing.

But in FY23-as well as climate headwinds and Pakistan's critical policy efforts- the ADB's lower growth projection also reflects double-digit inflation. The latest report is an update to ADB's annual flagship economic publication.

'The recent devastating floods in Pakistan add profound risk to the country's economic outlook,' said ADB Country Director for Pakistan Yong Ye.

ADB working quickly to provide significant package of relief, rehabilitation

'We hope that flood-related reconstruction and economic reforms will catalyze significant international financial support, stimulate growth, and preserve social and development spending to protect the vulnerable. ADB is preparing a package of relief, rehabilitation, and reconstruction to support people, livelihoods, and infrastructure immediately and in the long-term,' Yong Ye added.

The economic outlook will be shaped largely by the restoration of political stability and the continued implementation of reforms under the revived International Monetary Fund program to stabilize the economy and restore fiscal and...