*ISLAMABAD – Pakistan’s economic growth will decelerate or slow to 3.4% inthe 2019 financial year and 2.7% in the 2020 financial year.*
The World Bank released a report in which it said this was the result offiscal and monetary policies being tightened to address macroeconomicimbalances.
Domestic demand is expected to contract while at the same time exportgrowth will be gradual, stated the report, adding that the agriculture andindustrial sectors will grow less in these fiscal years.
Growth is expected to recover to 4% in the 2021 fiscal year as structuralreforms take effect and macroeconomic conditions improve.
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Remittances flows are likely to support the current account balance nextyear, according to the report. A more stable external environment willalso support a pickup in economic activity starting from 2021.
