ISALABAD: An external funding program, rising electricity pricing, and the International Monetary Fund (IMF) program are some of the main difficulties facing Pakistan’s economy, according to the World Bank’s “Pakistan Development Update: The Dynamics of Power Sector Distribution Reform” study.
Because of this, the bank issued a warning, noting that Pakistan’s macroeconomic projections strongly depend on maintaining the Washington-based lender’s program and obtaining the extra outside funding.
Although the government’s official objective of 3.5% is met, the financial institution’s report on Friday predicted a 2.8% GDP growth rate for Pakistan.
According to their prediction, average inflation was expected to be 11.1%, the current account deficit to be 0.6% of GDP, and the fiscal deficit to rise to 7.6% of GDP as a result of higher interest payments. It is projected that the public debt for the current fiscal year 2024–25 will amount to 73.8% of GDP.
