Pakistan's economy to grow at 3.4% during 2021-22- World Bank projection says

 World Bank projection is lower than the official projection of 5% economic growth during the current financial year

According to the Global Economic Prospects report 2022 released in January, Pakistan’s economy is projected to grow at 3.4% during the current financial year 2021-22. In its previous report in October 2021, the World Bank projected the same growth rate for Pakistani economy.  

In the report, the World Bank maintained a 3.4% growth rate for Pakistan for fiscal year 2021-22 that would end in June this year. This projection is lower than the target set by PTI government at 4.8% gross domestic product (GDP) growth-while ministry of finance projected the growth rate at 5%. The Prime Minister’s Economic Strategy Group predicted a 4.5% economic growth rate for the current fiscal year.

The low economic growth rate coupled with high inflation and high unemployment suggests that Pakistan is passing through a phase of stagflation. The global lender once again estimated last fiscal year’s growth at 3.5%, while showing reluctance to accept last fiscal year’s 4% growth rate.

World Bank report said that “growth in Pakistan surprised on the upside last year supported by improving domestic demand, record high remittance inflows, a narrow targeting of lockdowns and accommodative monetary policy – real interest rates dropped precipitously during 2020 and remained negative throughout most of 2021.”

According to the report, South Asian region will grow at 7.6% in 2022 and 6% in 2023.  The 3.4% growth rate was the second lowest in the South Asian region and was only above the 2.1% growth projected for Sri Lanka, which was also facing external sector problems.

Maldives economy has been projected to grow at the fastest pace of 11%, followed by 8.7% for India, 6.4% for Bangladesh, 5.4% for Bhutan and 3.9% for Nepal.

                                                                      Web Desk

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