ISLAMABAD - The Asian Development Bank (ADB) has noted that Pakistan’s economy was hit the hardest by last year’s floods, as the crops were destroyed, and demand and supply graph was disturbed, which led to increase the inflation.
The ADB in its report has stated that Pakistan was severely impacted by rising food and energy prices, exacerbated by the Russian invasion of Ukraine, triggering domestic inflation and curtailing consumption.
Highlighting the region’s vulnerability to climate change, Pakistan was also hit by devastating floods that killed more than 1,730 people, directly affected 33 million people, caused billions of dollars in damage, and worsened an already fragile economic situation.
It stated last year, Pakistan received the most funding among Asian countries. The ADB’s annual report says the Bank and its partners awarded projects worth $5.5 billion to Pakistan. In 2022, concessional loans of $2.6 billion were granted to the country. The Bank provided project financing worth $31.8 billion in Asia in 2022.
As well as delivering a substantial emergency response for Pakistan during 2022, ADB supported post-pandemic green growth and increased resilience to both short- and long-term challenges in its developing member countries (DMCs) of Central and West Asia. The bank committed financial resources totalling $6 billion for the region in 2022, comprising $4.8 billion in sovereign financing and $1.2 billion in non-sovereign investments.
