Pakistan needs accelerated economic reforms to speed up growth, create more jobs and bring more stability by addressing growing fiscal and current account deficits, the World Bank said today in a report.
The World Bank’s twice-a-year Pakistan Development Update said the country’s economic growth accelerated to 5.3 percent in the 2017 financial year – the highest level in a decade – and could reach 5.8 percent in the 2019 financial year.
However, as growth picked up, internal and external imbalances re-emerged. The fiscal deficit expanded to the highest level of the last three years as revenue mobilization weakened and spending rose. On the external front, the current account deficit grew, reaching its highest level in 10 years.
"Pakistan has made good progress in making its economy more stable in recent years,” says Illango Patchamuthu, World Bank Country Director for Pakistan. “In order to sustain this hard-won achievement, Pakistan will need to continue with economic reforms and pursue policies that make the country compete better in global markets.”