Asian Development Bank fears increase in inflation in Pakistan

ISLAMABAD (92 News) – The Asian Development Bank (ADB) has feared an increase in the inflation in Pakistan.

According to the outlook report 2021, the reason for the possible inflation is the increasing prices of electricity and oil. It reported that the production of cotton and sugarcane has increased, while there has been some improvement in the services sector.

The report says there has been a considerable decrease in the COVID-19 epidemic in the region. It declared the spread of the Omicron variant across the world as dangerous.

It predicted that the growth rate is likely to remain at 8.6 percent instead of 8.8 percent. It said that Afghanistan faces a big financial crisis and the international financial aid has decreased since the end of the elected government.

The overall inflation in the region will remain at 5.8 percent instead of 5.9 percent. The report also feared an increased in the inflation in India.