World Bank ad­mires govt for restor­ing eco­nomic sta­bil­ity

Pakistan Observer - - NATIONAL -

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

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