Pakistan’s economic growth to hit 5.5% in 2017/18: World Bank
July 12th, 2017 | No Comments
Flourishing agriculture with Chinese infrastructure would lead Pakistan’s economy to 5.5% growth in the economic year 2017-18 said the World Bank. The Washington-based investor projected this growth at 5.8 %.
“Pakistan’s weather, cotton prices, China-Pakistan Economic Corridor infrastructure project and a stable macroeconomic environment together all have increased in private investment,” said the World Bank.
The output of agriculture following the end of drought and completion of IMF- (International Monetary Fund) funded project improved foreign investment macroeconomic conditions.
The government has targeted 6% growth FY18 but world bank has warned law and order situation of the country can discourage both local and foreign investments. Pakistan and Afghanistan security concerns could restrain investment and confidence for business. The South Asian region has enhanced growth in 2017 according to WB.
Forecast growth in South Asia to pick up 6.8% in 2017 and 7.1% in 2018 following the inland demand and exports.
The Bank said that regional growth is predicted 5.7% with next year reaching to 5.8% a growth is expected to increase in Bhutan, Pakistan, and Sri Lanka excluding India. Improvement processes would slow the removal of supply limitations, reduce productivity growth, and hamper integration to be in global value chains.
The South Asian region has no such contribution to world’s economy that is why less effect negative external shocks and risks but remain a concern. Despite alliances for economic growth public debt stays high and but building contingent liabilities.
A challenge is posed by strict immigration policies in developed countries and oil crisis-stricken Gulf Cooperation Council that can weaker-than-expected demand or a growth in trade restrictions are the possibilities for the global economy.
The slowdown in payments in the wake of strict immigration policies in developed countries and oil crisis-stricken Gulf Cooperation Council poses a challenge to external sector. There is also a possibility of weaker-than-expected demand, or a growth in trade restrictions in advanced economies, which could weigh on exports. In India, an increase in government spending, including on capital formation has partially offset soft private investment in India. The Bank projected the growth at 7.2 % for FY18, 7.5 % for FY19 and 7.7 % for FY20.
The World Bank said agricultural activity and vigorous services, even with external and domestic challenges braced growth in Bangladesh. Sri Lanka being a recommencement of Chinese-funded investment and infrastructure lifted private and foreign direct investment.
In Bhutan and the Maldives, it added that growth to gain grip and Nepal’s growth has returned to normal after a good monsoon.
Published in: Volume 08 Issue 29
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