Tight fiscal policy has been adopted late, World Bank, (Photo: File)
Islamabad: The World Bank has revealed the possibility of Pakistan’s economic growth rate of only 0.4 percent in the current financial year, while it has also predicted that the inflation rate will remain at a high level of 29.5 percent until June.
The Pakistan Development Update Report has been released by the World Bank, emphasizing sustainable reforms to overcome the economic crisis in Pakistan, saying that Pakistan is facing slow economic growth and high inflation. Pakistan’s economic growth rate for the year is likely to be only 0.4 percent while inflation will remain at a high level of 29.5 percent by June.
The report said that the reason for inflation is the increase in energy and food prices. The report attributed the slow economic activity to lack of confidence, restrictions on imports, and destruction caused by floods.
According to a World Bank report, the informal exchange rate ceiling has reduced foreign exchange reserves, and due to tight global conditions, Pakistan is facing reduced access to capital.
According to the report, Pakistan is facing a delay in the completion of the IMF program review, as well as an increase in debt and a sharp decline in foreign exchange reserves. The report further states that there has been a delay in adopting a strict fiscal policy.
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