The World Bank has released a new report outlining the economic outlook for Pakistan, predicting a challenging period ahead with high inflation and modest growth.
According to the report, Pakistan’s inflation rate is expected to remain at a significant 26 percent for the current fiscal year, with a slight decrease to 15 percent projected for the next fiscal year.
The report details a modest economic growth rate of 1.8 percent for the current fiscal year, with a slight improvement to 2.3 percent anticipated for the next fiscal year. These figures reflect the ongoing challenges faced by the Pakistani economy, including structural issues and external pressures.
In the agricultural and industrial sectors, growth is expected to be 2.2 percent in the next financial year. This modest growth indicates a gradual recovery, though it remains below the potential for a country with a large and diverse economic base.
One of the critical indicators highlighted by the World Bank is the current account deficit, which is expected to be around 0.6 percent in the next financial year. This marks a slight improvement but underscores 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 the 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.
