ADB Predicts 7% Decrease On Pakistan’s Debt

The Asian Development Bank (ADB) expects Pakistan’s debt to decrease by 7% ending up at 70%.

An ADB report states Pakistan’s debt will decrease by 7% reaching 70%. This fiscal year, the country will use 62% of its revenue to pay off debt, while inflation will stay high.

The ADB’s Asian Development Outlook report highlights agriculture’s key role in last fiscal year’s economic growth. Pakistan saw inflation decrease from 38% to 11.8%.

Read Also: Global Inflation And Interest Rates To Rise: IMF

The ADB also noted Pakistan’s growth rate stood at 2.4% last fiscal year. Lower inflation has led to a cut in the policy rate.

IMF Predicts Rise In Global Inflation And Interest Rates

On the other hand, the International Monetary Fund (IMF) has predicted a rise in the global inflation rate and interest rates globally.

The IMF has revised global inflation rates upward in its latest Update report of the World Economic Outlook. On the other hand, the body has pitched Pakistan’s economic growth at 3.5 percent during the fiscal year, which is a tad lower than the government’s target of 3.6 percent set in the new budget. Last fiscal year, Pakistan recorded a growth rate of 2%. The global economy is likely to grow at a rate of 3.3 percent this year.

It is given in the update of the World Economic Outlook by the IMF that there may be a rise of inflation and high interest rates at the global level. Moreover, it has supposedly indicated a decrease in policy rates during the second half. It is supposed to be the case that energy and food prices will gradually go back to the pre-COVID levels, while global inflation would still stay high.

It further goes on to say that high global inflationary rates can hit the growth pace of an economy. That will be quite a challenge to the developing economies, as a fall in purchasing power was to result into economic instability.