The World Bank predicts that Pakistan’s gross domestic product (GDP) would remain around 3% for the next three years, with the current fiscal year’s growth rate reaching 1.8 percent, although growth will remain around 2.3 percent by 2025.
According to the World Bank’s newest outlook report on Pakistan, which was issued on Tuesday, the moderate rebound was attributable to restrictive monetary and fiscal policies, muted economic activity, and low business confidence. The World Bank forecast a decrease in inflation next year, which was expected to be 26 percent this fiscal year. Inflation may reach 15% in fiscal year 2025.
However, inflation was predicted to fall to 11.5% in fiscal year 2026. According to the World Bank research, industrial growth is expected to stay around 1.8 percent this fiscal year. According to the WB research, agricultural growth is expected to reach 2.2% in 2025 and 2.7% in 2026. While industrial growth is predicted to stay at 2.2 percent in FY 2025 and 2.4 percent in 2026.
The budget deficit was predicted to be 8% of GDP this fiscal year. The budget deficit was projected to reach 7.4% of GDP in fiscal year 2025 and 6.6% of GDP in fiscal year 2026.—NNI
Maria Ghanchi