Lacking funds According to a recent assessment, pakistan, which is struggling with a collapsing economy, has earned the unenviable distinction of being the most expensive country in Asia to live in. According to a research by the Asian Development bank (ADB), pakistan is experiencing a serious economic crisis. The country has the highest cost of living in Asia, with inflation reaching a peak of 25 percent.
According to the ADB research, which was made public thursday in Manila, the capital of the Philippines, Pakistan's economy is expected to have a dismal future in the upcoming fiscal year, with inflation predicted to be the highest among 46 Asian nations at almost 15 percent. Pakistan's FY24–25 growth rate of 2.8 percent is the sixth lowest in the region, according to the ADB's prediction.
The financial organization claims that because of a major inflation rate of 25 percent in FY25, pakistan has risen from having the highest expense of living among South Asian countries to the most expensive country in Asia. The ADB pointed out that even though the government has set an eye-popping interest rate of 22%, the state bank of pakistan (SDB) would fall short of the inflation target of 21%.
Pakistan to clock low growth rate
According to the research, pakistan is still in a "stagflation phase" and is predicted to have the fourth-lowest growth rate in FY25, at 1.9%, behind Myanmar, Azerbaijan, and Nauru. According to the ADB analysis, which cited the World bank, any unfavorable shock is likely to push an additional 10 million people in pakistan into the poverty trap.
Approximately 98 million Pakistanis, or a significant portion of the 250 million people who call the nation home, currently live below the poverty line.
According to the research, in addition to political instability that might jeopardize reform initiatives, pakistan will probably continue to struggle with significant external financial obligations and historical debt that are made worse by global monetary circumstances. "Further IMF support for a medium-term reform agenda would considerably improve market sentiment and catalyze affordable external financing from other sources," it stated.
According to the ADB research, which was made public thursday in Manila, the capital of the Philippines, Pakistan's economy is expected to have a dismal future in the upcoming fiscal year, with inflation predicted to be the highest among 46 Asian nations at almost 15 percent. Pakistan's FY24–25 growth rate of 2.8 percent is the sixth lowest in the region, according to the ADB's prediction.
The financial organization claims that because of a major inflation rate of 25 percent in FY25, pakistan has risen from having the highest expense of living among South Asian countries to the most expensive country in Asia. The ADB pointed out that even though the government has set an eye-popping interest rate of 22%, the state bank of pakistan (SDB) would fall short of the inflation target of 21%.
Pakistan to clock low growth rate
According to the research, pakistan is still in a "stagflation phase" and is predicted to have the fourth-lowest growth rate in FY25, at 1.9%, behind Myanmar, Azerbaijan, and Nauru. According to the ADB analysis, which cited the World bank, any unfavorable shock is likely to push an additional 10 million people in pakistan into the poverty trap.
Approximately 98 million Pakistanis, or a significant portion of the 250 million people who call the nation home, currently live below the poverty line.
According to the research, in addition to political instability that might jeopardize reform initiatives, pakistan will probably continue to struggle with significant external financial obligations and historical debt that are made worse by global monetary circumstances. "Further IMF support for a medium-term reform agenda would considerably improve market sentiment and catalyze affordable external financing from other sources," it stated.
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