ISLAMABAD – The World Bank has lowered its forecast for Pakistan’s economic growth in the next fiscal year as the country is facing the worst balance of payments crisis in recent times.
In a recent report Global Economic Prospects, the international financial institution projected economy of crisis-hit country to grow by 2 percent in the fiscal year 2023-24, a 1.2 percent downward revision from January 2023.
It flagged last year’s floods, worsening social tensions, record inflation, and policy uncertainty for cut in growth forecast.
The report highlighted that agriculture output apparently contracted for the first time in nearly twenty years, calling economic recovery feeble, due to limited fiscal room for the government.
The unprecedented floods, policy uncertainty, and limited forex resources affected activity, while industrial production shrunk by about 25pc this year.
It said surge in policy rate has not kept speed with inflation which affected real interest rates. The reports said Pakistan, Afghanistan, and Sri Lanka will continue to face a downward trend in the coming months.
WB said several South Asian nations are bearing the brunt of one or more climate-related disasters over the past two decades, with last year’s floods in Pakistan causing damage estimated at 4.8 percent of GDP.
https://en.dailypakistan.com.pk/18-Jan-2023/has-world-bank-delayed-dollar-1billion-loan-for-pakistan-until-next-fiscal-year
