ADB forecasts high inflation for Pakistan in current fiscal year

The Asian Development Bank (ADB) has predicted that inflation in Pakistan will remain high in the current fiscal year. The bank's latest Asian Development Outlook report raised its economic growth forecast for developing Asia and the Pacific from 4.9% to 5%, but Pakistan faced a more challenging outlook. The ADB forecast that Pakistan’s inflation rate, which had decreased from 38% to 11.8%, will remain elevated. The bank also predicted that the country's debt could reduce by 7%, from 77% to 70%. Despite these projections, the ADB highlighted that 62% of Pakistan's revenue will be used for debt repayment during the fiscal year 2024-2025. The bank also noted that global food prices are expected to ease, which could help moderate inflation, though some regions will still face high food inflation due to adverse weather and export restrictions.