Rising tensions endanger reforms

The Asian Development Bank (ADB) said on Wednesday that rising political and institutional tensions in Pakistan may jeopardise its economic reforms agenda whose implementation is very critical for smooth inflows of foreign loans under the new International Monetary Fund (IMF) programme. In its Asian Development Outlook, the Manila-based lender projected only 2.8% economic growth for Pakistan in the current fiscal year – the lowest in South Asia – and put inflation at 15% - the highest in the region. "The new government has committed to the necessary stabilisation and structural reforms but faces challenges owing to elevated political and institutional tensions and the prospects of social unrest from a steep drop in real incomes," said the report.