ISLAMABAD: As the country looks to secure the approval of the International Monetary Fund’s (IMF) executive board’s approval of a fresh bailout programme, the Asian Development Bank has forecast the nation’s gross domestic product (GDP) to be 2.8% in FY2025.
In its Asian Development Outlook (ADO) September 2024 report, the ADB said the growth rebounded to an estimated 2.4% in the ongoing year due to reforms aimed at the nine-month IMF Stand-By Arrangement (SBA) which contributed to improved foreign exchange reserve and restored bilateral and multilateral inflows bringing economic stability.
The development comes after sources revealed that the IMF’s executive board is set to meet today wherein the Fund, as per Finance Minister Muhammad Aurangzeb, is expected to greenlight $7 billion, 37-month Extended Fund Facility (EFF) for Islamabad.
Speaking on the country’s future, the ADB’s DB Country Director for Pakistan Yong Ye said that Islamabad’s economic prospects were closely tied to the steadfast and consistent implementation of policy reforms to stabilise the economy and rebuild fiscal and external buffers.
Furthermore, the report also links economic growth to adherence to the reform agenda.
