LAHORE: World Bank has projected Pakistan’s economic growth will decelerateto 3.7% in the current financial year 2018-19 with financial conditionstightening to help counter rising inflation and external vulnerabilitiesfrom a thirteen-year high of 5.8% in FY17-18.
The Washington-based lender stated macroeconomic imbalance are weighing onPakistan’s growth outlook and it is expected to face financing needs due tolarge twin deficits (current account and trade deficit) combined with lowinternational reserves.
And activity is projected to rebound and average 4.6 percent over themedium term with support from stabilizing macroeconomic conditions, saidthe report.
During FY17-18, the World Bank estimated that Pakistan’s economy grew at5.8% with solid contributions from consumption and investment.
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Moreover, activity was backed by the strengthening in the agricultural,industrial sectors and sustained acceleration in services.
