Commerce Reporter, Daily Dawn, Dawn TV Report
Islamabad: The World Bank says that there is a risk of slowing down in economic recovery in Pakistan after the recent floods, and due to flood damages, Pakistan’s economic growth rate is estimated to be limited to 2.6% in the current fiscal year 2025-26.
The World Bank has issued a report on the economic situation of Pakistan, according to which Pakistan’s economic growth rate is estimated to be limited to 2.6% in the current fiscal year, while the government has set an economic growth target of 4.2% for the current fiscal year. Pakistan will grow at a rate of 3.6% in the next fiscal year.
According to the World Bank, there is a risk of slowing down in economic recovery in Pakistan after the recent floods, due to flood damage, real GDP growth is likely to be 2.6% in the fiscal year 2025-26. Inflation in Pakistan may exceed 7% in the current fiscal year.
According to the report, agricultural production in Punjab has decreased by 10 percent, and rice, sugarcane, cotton, wheat and maize crops have been affected. The fiscal deficit is expected to increase by 5.5 percent due to the impact on food supplies. Economic growth will depend on the restoration of the agricultural sector.
The World Bank says that the poverty rate in Pakistan is likely to decrease by one percent next year. The poverty rate is expected to be 44 percent in the current fiscal year and 43 percent in the next fiscal year.
The report says that economic improvement is possible with increased revenues, reduced expenditures and agricultural revival, and exports are expected to increase with a reduction in tariffs under the 5-year reform plan. Exports have decreased due to floods, but a balance will be possible with remittances and low oil prices.
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