The World Bank (WB) has released a report on Pakistan’s economy, stating that the country’s economy continues to stabilise and is expected to grow by 2.7 percent in the current fiscal (2024-25).
According to the report, the interest rate has also been reduced due to decline in inflation.
“The confidence of global investors in Pakistan’s economy has been restored, with a projected economic growth rate of 2.7 percent for the current fiscal year, up from 2.5percent in the previous fiscal year,” the WB’s report read.
Pakistan’s growth rate is expected to be 3.1 percent in the next fiscal year, while 3.4 percent in 2027, according to the WB’s report.
The World Bank; however, warned that Pakistan’s economy cannot afford delays in structural reforms. The report also identified key challenges for Pakistan’s economy including the increasing debt burden, uncertain global trade conditions, and the impacts of climate change.
It cautioned that Pakistan’s growing debt burden is the biggest challenge while uncertain global trade conditions and effects of climate change also pose challenges for the country’s economy.
