WASHINGTON: The World Bank has projected Pakistan‘s inflation at 15 per cent nest year besides predicted financial deficit at eight per cent of the Gross Domestic Product (GDP) for this year.
The Bank released a new report outlining the economic outlook for Pakistan, predicting a challenging period ahead with high inflation and modest growth.
The report stated that Pakistan’s inflation rate was expected to remain at a significant 26 per cent for the current fiscal year, with a slight decrease to 15 per cent projected for the next fiscal year.
The report details a modest economic growth rate of 1.8 per cent for the current fiscal year, with a slight improvement to 2.3 per cent 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 per cent 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 per cent of the GDP in the current fiscal year. This is expected to decrease to 7.4 per cent in the next fiscal year, indicating some fiscal tightening but still representing a significant challenge for economic stability.
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