Pakistan’s economic indicators continue to tread on a downward trajectory and all major institutions are painting a bleak picture of the country’s financial situation.
In its recent report titled “Outlook for the Year 2022,” the Asian Development Bank (ADB) has declared Pakistan as the second most expensive country in South Asia.
The report has predicted that Pakistan’s inflation will remain high and PKR will slip further in the months to come. Recently, the Pakistan Bureau of Statistics (PBS) revealed that inflation in the country touched 23.84% in November 2022 as compared to 11.5% in November 2021.
ADB has also estimated that energy will become more expensive in Pakistan. The recent floods have rendered significant damage to the country’s agriculture sector.
Pakistan’s economic growth will be restricted due to flood damages, high inflation, and tight monetary policy amid an unconducive global financial environment.
In a similar development, major financial institutions like the IMF, World Bank, Bloomberg, and Visual Capitalist have ranked Pakistan at the 19th spot on the list of countries with the highest inflation rate.
These institutions agree that energy inflation is a major factor behind the rising cost of living worldwide. The Coronavirus pandemic and the Russia-Ukraine war continue to fuel energy inflation. Since October 2020, the prices of crude oil, natural gas, coal, and propane have gone up drastically.