The World Bank anticipates that Pakistan’s economy will keep expanding, with real GDP growth predicted to climb by 2.8% in FY25—a rise from the previous projection of 2.3%.
In a paper titled “Pakistan Development Update: The Dynamics of Power Sector Distribution Reforms,” the World Bank provided these estimates.
“As the economy takes advantage of the absence of restrictions on imports, easing domestic disruptions in supply chains, and lower inflation,” the GDP growth rate has improved.
Credit rating increases and a decrease in political unpredictability are also anticipated to boost business confidence, the report stated.
In the meantime, growth in Pakistan’s agriculture industry is anticipated to average 2.4% over FY25–26.
According to the World Bank, removing import restrictions will increase the supply of agriculture inputs for the agricultural sector, aiding in the medium-term recovery of the sector.
Due to strong base effects, falling commodity prices, and ongoing strict macroeconomic policies, the World Bank projects that consumer price inflation in Pakistan would average 11.1% in FY25 and then drop to 9% in FY26.
Regarding the outside world, Pakistan’s current account deficit is predicted to be modest at 0.6% of GDP in FY25 and gradually increase to 0.7% in FY26 as the country’s demand grows and import restrictions remain unrestricted.
It is anticipated that import growth would outpace export growth, resulting in a larger trade deficit. Remittances are anticipated to somewhat decline in the interim, partly as a result of the host nations’ slower development.
