*The World Bank cut its economic growth forecast for Pakistan by almost oneper cent, citing last ditch energy subsidies by the outgoing government.*
“GDP growth is expected to slow to 4.3pc in FY22 (against 5.6pc last year)and to 4pc in FY23,” the WB said in its report.
The Washington-based lender also asked Pakistan to immediately withdrawenergy subsidies, terming these “unsustainable and ineffective”.
However thereafter, economic growth is projected to recover to 4.2 percentin FY24, supported by the implementation of structural reforms to supportmacroeconomic stability and dissipating global inflationary pressures, theWorld Bank noted in its report, ‘the latest South Asia Economic FocusReshaping Norms: A New Way Forward’.
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The reported noted that countries in South Asia are already grappling withrising commodity prices, supply bottlenecks, and vulnerabilities infinancial sectors. The war in Ukraine will amplify these challenges,further contributing to inflation, increasing fiscal deficits, anddeteriorating current account balances.