World Bank admires govt for restoring economic stability
ISLAMABAD—Pakistan continues its modest growth recovery while growth rate in 2017 is expected to rise to 4.8 percent. Releasing its twice year Pakistan Development Update, the World Bank lauded the government for restoring economic stability but noted that much of the country’s economic growth was underpinned by external influences such as low oil prices and strong remittances.
The Bank said that Pakistan has made great progress in restoring macroeconomic stability but much more needs to be done to put Pakistan on a solid, economic growth footing,’ said Illango Patchamuthu, World Bank Country Director for Pakistan. ‘Persistent, steady progress on the structural reform agenda will be necessary if Pakistan is to accelerate its growth recovery and lift millions more out of poverty.’
The latest Pakistan Development Up- date sets out recent developments across the economy and identifies risks and next steps facing Pakistan’s nearterm future before focusing in on a handful of key development challenges.
The report highlighted that the pace of Pakistan’s economic growth will accelerate modestly through to 2019. However, significant risks remain and the country should guard against global slowdown by continuing to make key reforms, including expanding electricity supply, boosting tax revenues, strengthening business environment and encouraging private sector to invest.
It identified services and largescale manufacturing as the key supplyside drivers of growth. Services are expected to grow over 5 percent in FY2016 while largescale manufacturing, benefitting from low global commodity prices, is expected to grow between 4 and 4.5 percent.—APP