World Bank revises Pakistan’s growth rate upwards to 5.2% in FY17

Published: January 11, 2017
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ISLAMABAD: The World Bank has revised Pakistan’s growth rate upwards to 5.2% for fiscal year 2017 and 5.5% for 2018.

It previously estimated growth in Pakistan’s gross domestic product (GDP) at 5% and 5.4% for FY17 and FY18, respectively.

The report ‘Global Economic Prospects; weak investment in uncertain times’, states that the uptake in activity is spurred by a combination of low commodity prices, increasing infrastructure spending, and reforms that lifted domestic demand and improved the business climate.

In Pakistan, growth is forecast to accelerate from 5.5% in fiscal year 2018 to 5.8% in fiscal year 2019-20, reflecting improvements in agriculture, infrastructure, energy and external demand.

The report further mentioned the successful conclusion of the IMF Extended Fund Facility (EFF), aimed at supporting reforms and reducing fiscal and external sector vulnerabilities, lifted consumer and investor confidence.

‘Pakistan Development Update’: World Bank projects economy will grow at 5%, miss govt target

The China-Pakistan Economic Corridor (CPEC) project is also tipped to increase investment in the medium-term, and alleviate transportation bottlenecks and electricity shortages.

Earlier in November, whilst releasing its report ‘Pakistan Development Update – Making growth matter’ the World Bank had projected Pakistan’s economy to grow at 5% in the ongoing fiscal year, meaning that the country was to miss the government-set target of 5.4%.

The Washington-based lender, in that report, added that the country’s economy could see a growth of 5.4% in FY18 on the back of continued mushroom growth in the services sector, recovery of agriculture and uptick in infrastructure investment.

“The services sector, which comprises more than half of the economy, is expected to be the primary source of growth,” stated report.

Additionally World Bank Country Director for Pakistan, Patchamuthu Illangovan, has stressed on the need for increased investment in social sectors like health, education and nutrition. “All this would lead to a vibrant and dynamic society as well as the economy,” he has stated.

With additional input from APP

Published in The Express Tribune, January 12th, 2017.

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Reader Comments (3)

  • Faisal
    Jan 11, 2017 - 5:16PM

    Blame PMLN again, great job PMLN your doing a wonderful job.Recommend

  • Sabi
    Jan 11, 2017 - 5:35PM

    Another add to salt to the unending injuries of jealous of NS. Status quo will never accept progress for the people of Pakistan. Shame on them.Recommend

  • Raider
    Jan 12, 2017 - 6:49AM

    @Sabi:
    Who is reporting. A donor backed by us and power players. Same was reporting 7 plus growth in mushraff eraRecommend

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