LAHORE : – The World Bank on Friday has said that growth in Pakistan economy is expected to slow to 5% in 2018-19 from expected growth of 5.8% in the outgoing fiscal year, reflecting tighter policies to improve macroeconomic stability.
According to the World Bank’s Global Economic Prospects Report for 2018, Pakistan’s GDP growth rose in 2017-18, supported by infrastructure projects funded by the China-Pakistan Economic Corridor (CPEC), improvements in energy supply, and persistent private consumption growth.
The forecast for the next two years shows that growth in economy will remain at 5% in 2019-20 and 2020-21.
Continued buildup of debt, and widening current account deficits in Pakistan, present significant vulnerabilities to a tightening of domestic or external financing conditions.
According to a statement issued by World Bank office in Islamabad, despite recent softening, global economic growth will remain robust at 3.1% in 2018 before slowing gradually over the next two years, as advanced-economy growth decelerates and the recovery in major commodity-exporting emerging market and developing economies levels off.
The World Bank further forecasted that Pakistan would have to approach the IMF for seeking another bailout package within the next few months in order to overcome the twin deficits including the budget deficit and current account deficit.