is expected to face a slowdown in 2023 due to various factors, such as **devastating floods**, **high inflation**, **large current account deficit**, **high public debt**, and **less conducive global environment**²³⁴. According to the Asian Development Bank (ADB), Pakistan's economy is forecast to grow by only **3.5%** in fiscal year 2023 (ending 30 June 2023), compared to **6.0%** in fiscal year 2022⁶. The World Bank also projected a similar growth rate of **2.0%** for Pakistan in fiscal year 2023². The economic crisis is likely to worsen the poverty situation and affect the living standards of millions of people²³. The government will have to balance between meeting the relief and recovery needs of the flood-affected population and implementing overdue macroeconomic reforms, especially in the energy sector²⁶. Pakistan will also have to repay $80 billion in foreign loans in the next three years³, which will put further pressure on its foreign exchange reserves and fiscal space.


Source: Conversation with Bing, 6/17/2023

(1) World Bank: Pakistan’s Economy Slows Down While Inflation Rises Amid .... https://www.worldbank.org/en/news/press-release/2022/10/06/world-bank-pakistan-s-economy-slows-down-while-inflation-rises-amid-catastrophic-floods.

(2) Pakistan’s Economic Crisis: What Went Wrong? – The Diplomat. https://thediplomat.com/2023/05/pakistans-economic-crisis-what-went-wrong/.

(3) 2022–2023 Pakistani economic crisis - Wikipedia. https://en.wikipedia.org/wiki/2022%E2%80%932023_Pakistani_economic_crisis.

(4) Pakistan Economy to Slow in 2023 Amid Strong Climate Headwinds — ADB. https://www.adb.org/news/pakistan-economy-slow-2023-amid-strong-climate-headwinds-adb.

(5) Pakistan Economy to Slow in 2023 Amid Strong Climate Headwinds — ADB. https://bing.com/search?q=pakistan+economy+2023.

(6) Economy of Pakistan - Wikipedia. https://en.wikipedia.org/wiki/Economy_of_Pakistan.