ADB raises Pakistan\'s growth forecast to 3%

The Asian Development Bank (ADB) on Wednesday raised Pakistan's growth forecast to 3% and cut its inflation projection to 10%, citing a rebound in industrial activities due to relaxed import restrictions and improved access to foreign exchange. In its flagship publication, Asian Development Outlook, the Manila-based lender noted that Pakistan's agriculture sector would weaken due to the poor output of two key cash crops, wheat and cotton. The 3% growth rate is still lower than the official target of 3.6%, indicating the government's inability in achieving major macroeconomic goals. The report was released the same day the ADB approved two new loans for Pakistan totalling $530 million. The loans will provide cash handouts to beneficiaries of the Benazir Income Support Programme (BISP) and support improvements in the power distribution network. Pakistan's growth for fiscal year 2024-25 is projected at 3%, revised upwards from 2.8% in September. However, this rate remains lower than the government's target.