Pakistan is ranked as the second-most expensive nation in South Asia by the Asian Development Bank (ADB).
The ADB forecast that Pakistan’s inflation rate will remain high in the upcoming months and that the value of the Pakistani rupee may decline even further in the supplement report titled "Asian Development Outlook 2022 Supplement.”
The economic growth in South Asia has slowed down as a result of the floods, and the forecast predicts that energy prices in Pakistan will likely rise. It also notes that the floods in Pakistan and Bangladesh have impacted economic growth.
“Flood disruption and damage are expected to slow down real GDP growth in combination with a tight monetary policy, high inflation and an unconducive global environment,” the ADB said in a regular supplement to the Asian Development Outlook (ADO) 2022.
The report further stated that the floods have caused significant damage to Pakistan’s economy, causing massive damage to agriculture, especially wheat and livestock.
The ADB projected inflation for South Asia — comprising of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka — to increase from 8.1pc in September to 8.2pc in the recent December update.
