The country is unlikely to meet its 4.5 percent economic growth rate target because of the recent massive flooding it experienced and is still reeling from, the Asian Development Bank said. The flooding left more than 4 million people homeless and some 8 million in urgent need of humanitarian aid. Juan Miranda, director general of ADB’s Central and West Asia department, said that Pakistan’s economy would likely grow slower than predicted because of the extent of the damage caused by the flooding.

    “Crops have been damaged. Infrastructure has been damaged. You can’t sell stuff. You can’t connect to another village. That cannot help the economic growth figure,” he was quoted by Reuters.

    On a more positive note, the Pakistan State Bank is reportedly drafting a new microfinance strategy aimed at developing infrastructure needed to promote inclusive and sustainable growth in the country’s microfinance sector. The strategy would include initiatives to upscale the sizes of microfinance loans and encourage the establishment of more regional and provincial microfinance institutions, the Express Tribune says.

    About the author

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      Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.