The World Bank has predicted that Pakistan's gross domestic product (GDP) to remain below 3 percent in the next three years while during the current fiscal year the growth rate may touch 1.8 percent, however in 2025 growth will remain around 2.3 percent. According to World Bank's latest outlook report on Pakistan released on Tuesday, the subdued recovery reflected the tight monetary and fiscal policy and muted economic activity amid weak business confidence. The World Bank predicted a decline in inflation next year which was likely to be 26pc this fiscal year. Inflation may reach 15 percent in fiscal year 2025. However, inflation was expected to drop down to 11.5 percent in fiscal year 2026.

World Bank report further said industrial growth may remain around 1.8 percent during thr current fiscal year. According to the WB report, agricultural growth was likely to touch 2.2 percent in 2025 and 2.7 percent in 2026. While industrial growth was expected to remain 2.2 percent in FY 2025 and 2.4 percent in 2026. While fiscal deficit was expected to reach 8 percent of GDP this fiscal year. While fiscal deficit was expected to be 7.4% of GDP in fiscal year 2025 and 6.6 percent of GDP in fiscal 2026. However, after a contraction in FY23, Pakistan’s economic activity has strengthened over the first half of FY24 on the back of strong agricultural output.

Credit: Independent News Pakistan