The Asian Development Bank (ADB) says, Pakistan’s economic growth is set to slump further to 3.9 per cent in the fiscal year 2019 from 5.2 per cent in 2018.
In its flagship economic publication titled “Asian Development Outlook 2019,” the Manila-based bank said Pakistan’s economic growth decelerated in the fiscal year 2018 despite revived agriculture. It cited the “macroeconomic challenges” faced by the cash-strapped country for deceleration.
The expansionary fiscal policy markedly widened the budget and current account deficits and drained foreign exchange, it said.
Pakistan’s GDP growth is forecast to decelerate further to 3.9 per cent in FY2019 as macroeconomic challenges continue and despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits.
Continued fiscal consolidation in FY2020 will keep growth subdued at 3.6 per cent, the ADB said.