ISALAMABAD: The World Bank has released a new report outlining a challenging economic outlook for Pakistan, characterized by high inflation and modest growth.
According to the report, Pakistan’s inflation rate is projected to remain high at 26 percent for the current fiscal year, with a slight decrease to 15 percent anticipated for the next fiscal year.
The report forecasts a modest economic growth rate of 1.8 percent for the current fiscal year, with a marginal improvement to 2.3 percent expected in the next fiscal year. These figures reflect the persistent challenges facing the Pakistani economy, including structural issues and external pressures.
Growth in the agricultural and industrial sectors is expected to be 2.2 percent in the next financial year. This modest growth suggests a gradual recovery, though it remains below the potential for a country with a large and diverse economic base.
A critical indicator highlighted by the World Bank is the current account deficit, expected to be around 0.6 percent in the next financial year. This marks a slight improvement, emphasizing the need for continued fiscal management and reform.
The financial deficit presents a more concerning picture, with the report projecting it to reach 8 percent of GDP in the current fiscal year. This is expected to decrease to 7.4 percent in the next fiscal year, indicating some fiscal tightening but still representing a significant challenge for economic stability.
