Pakistan has highest living cost in Asia: ADB

Asian Development Bank (ADB)

A recent report published by the Asian Development Bank (ADB) has shed light on the cost of living in various countries across Asia. The report, titled 'Asian Development Outlook,' underscores significant disparities in inflation rates and economic growth among Asian nations. This report particularly highlights Pakistan's position as the country with the highest cost of living in Asia.

Key Findings

Pakistan Tops Inflation Rates: According to the ADB report, Pakistan has emerged with the highest inflation rate among 46 Asian countries, standing at a staggering 25 percent. This places Pakistan as the most expensive country in terms of cost of living in the region.

Economic Growth Comparison: In contrast to its high inflation rate, Pakistan ranks poorly in terms of economic growth, standing fourth from the bottom among Asian countries. The report indicates that Pakistan lags behind other nations in achieving substantial economic growth.

Forecasted Inflation Rates: The ADB predicts a slight decrease in inflation for Pakistan in the upcoming financial year, projecting it to be around 15 percent. However, this still indicates a significant challenge for the country's economy.

Comparison with South Asian Countries: Within South Asia, Bangladesh ranks second behind Pakistan in terms of inflation, with a rate of 8.4 percent. However, Bangladesh fares better than Pakistan in terms of economic growth, reflecting a more favorable position in terms of Gross Domestic Product (GDP).

Inflation Targets: Despite the alarming inflation rates, the Government of Pakistan and the State Bank of Pakistan (SBP) have set an inflation target of 21 percent for the current fiscal year, indicating efforts to mitigate the economic challenges.

The ADB report highlights the pressing issue of high inflation rates in Pakistan, which significantly impacts the cost of living for its citizens. While the forecast indicates a slight improvement in the coming year, addressing inflation remains a crucial priority for the country's economic stability. Furthermore, the comparison with other South Asian countries underscores the need for effective economic policies to ensure sustainable growth and mitigate the impact of inflation on the population.

This report aims to provide insights into the findings of the ADB report and the implications for Pakistan and other Asian countries in terms of cost of living and economic growth.