Forecasting that challenges to Pakistan’s economy would continue to persist over the next year, the Asian Development Bank said that elections in 2024 could be a big factor in boosting confidence in the economy.

In a report titled e Asian Development Outlook September 2023 published on Wednesday, the ADB said that Pakistan Gross Domestic Product will grow by a measly 1.9% while inflationary pressures are expected to stay high.

However, the report added that elections in 2024 could provide a boost to the economy.

“Political stability following general elections later this year, if achieved, will boost business confidence, as will a new standby arrangement agreed with the International Monetary Fund to support economic stabilization and rebuild fiscal buffers,” the report said.

The report said that the downside risks to Pakistan’s overall economic outlook will remain remain ‘exceptionally high’.

The report added that inflation is expected to ‘ease’ over the next fiscal year but significant infaltionary pressures remain.

“Sharp increases in petroleum, electricity, and gas tariffs are envisaged under the program. As import and exchange rate controls are eased, the rupee could further weaken, raising the cost of imported goods,” the report added.