WASHINGTON – The new report of World Bank on Pakistan economy has raisedthe alarm bells for economic policy makers in Pakistan.

World Bank has warned the Pakistani newly-elected government that economiccondition of Pakistan is likely to remain unstable for next two years.

As per report, the World Bank predicted that Pakistan will face severechallenges in coming two years and it needs investment and productivitydriven growth, adding that the country will be troubled to createemployment and reducing poverty.

The report stated that Pakistan has limited resources but expense are veryhigh. World Bank country director Illango Patchamuthu has said thatPakistan’s growth has to be driven by investment and productivity whichwill put it on a path to end the boom and bust cycle its economy faces.

“This will create more and better paid jobs and is a reliable path tofuture economic growth and stability,” director said while commenting onthe World Bank’s twice-a-year report Pakistan Development Update.

The report suggested Pakistan needs to address growing fiscal and currentaccount deficits on a sustainable basis for long-term growth. The country’seconomic growth accelerated to 5.8 per cent in the 2018 financial year –the highest level in more than a decade, the report said.