“Pakistani Economy: 7 Powerful Insights to Tackle Debt Reduction Challenges”

Role of the Asian Development Bank in Pakistan:

An Overview of the Role of ADB in the Pakistani Economy:
Since its establishment in 1966, the Asian Development Bank (ADB) has extended its support to the Pakistani economy by offering grants, loans, and technical assistance aimed at bolstering climate resilience, empowering women, and enhancing public finance, energy, agriculture, social services, and economic infrastructure.
With $10.8 billion in loans and grants as of December 2020, the Pakistani economy ranked as the fifth-largest beneficiary of ADB assistance.

ADB provided $1.6 billion to Pakistan’s economy in 2023 for projects including food security, electricity transmission, transportation, women’s finance, flood relief, and resource mobilization.

For Pakistan (2021–2025), the ADB’s current country partnership plan places a high priority on enhancing resilience, competitiveness, and private sector development in addition to bettering economic management.

Pakistani economic condition:

The Asian Development Bank (ADB) states that the debt volume in the Pakistani economy could decrease by 7% to 70%.

According to an ADB estimate, 62% of Pakistan’s GDP would go toward paying down debt during the current fiscal year, and the country’s high rate of inflation will persist.

Pakistan’s inflation rate fell from 38% to 11.8% in the most recent fiscal year, and agriculture contributed significantly to economic growth, according to the ADB’s Asian Development Outlook report.

The ADB also reported that Pakistan’s growth rate was 2.4% in the last fiscal year. The reduction in the inflation rate in Pakistan led to a decrease in the policy rate.