Floods weigh down Pakistan's economic outlook for FY23: ADB - DAWN.com

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The Asian Development Bank (ADB) said on Wednesday that Pakistan’s economic outlook for the fiscal year ending in June 2023 has “deteriorated under heavy flooding” while the “economy was already struggling to regain macroeconomic and fiscal stability”.
In the supplement report titled ‘Asian Development Outlook 2022 Supplement’, ADB said flood disruption and damage in the country are “expected to slow real Gross Domestic Product (GDP) growth in combination with a tight monetary stance, high inflation, and an un-conducive global environment”.
The report said catastrophic floods this year have “dampened economic activity” in Pakistan, which was already affected by “stabilisation efforts to tackle sizeable fiscal and external imbalances and double-digit inflation”.
Growth and inflation outlook in Pakistan
Moreover, the ADB report highlighted that flood damage in Pakistan threatened the upcoming agricultural season as well, as wheat is usually planted from mid-October.
It said the flooding is expected to have spillover effects on industry — notably textiles and food processing — and on services, in particular wholesale trade and transportation.
The report added that the floods had adversely affected cotton, rice and other important crops that are grown in the country.
The fiscal year 2023 forecast for Pakistan has been revised to reflect a “weaker currency [and] higher domestic energy prices” along with “flood-related crop and livestock losses and supply disruption, which...

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