Pakistan economy facing myriad challenges: ADB

MANILA: Asian Development Bank (ADB) has said, “Pakistan economy is facing fundamental challenges---the financial deficit is mounting due to inordinate delay in increasing the income, SCI News reported.

ADB in its Outlook Report-2011 released here said that the escalating global crude prices and the enhancement of power tariffs would intensify the inflationary pressure---the rate of inflation in the current fiscal year would be around 16 percent, while the volume of subsidies would shoot up to Rs200 billion due to flawed planning, the report forecast.

ADB report further said that the Pakistan economy severely hit by the last year flood devastations facing myriad problems and the failure of the government in expanding the tax net swelling the financial deficit.

Pakistan’s economy would grow by 2.5 percent during the current fiscal year, the report predicted.