WB expects economic activity in Pakistan to ‘remain subdued’, projects GDP growth at 1.8pc in FY24

The World Bank on Tuesday said that it expected economic activity in the country to “remain subdued”, adding that the GDP was expected to grow at 1.8 per cent in the current fiscal year. “Pakistan is expected to continue facing foreign exchange liquidity issues due to the persistent trade deficit and limited access to external financing,” said the World Bank’s latest report titled “Pakistan Development Update: Fiscal Impact of Federal State-Owned Enterprises”. “Even with the recent successful completion of the International Monetary Fund (IMF)’s Stand-By Arrangement (SBA) and continued rollovers, reserves are projected to remain low,” it said. The Bank warned that import management measures were expected to continue disturbing domestic supply chain, in addition to tight macroeconomic policies subduing the aggregate consumption and investment.