Pakistan Is In Grip Of Weak Economy : World Bank [AbbTakk] 11 Oct, 2018

Pakistan Is In Grip Of Weak Economy : World BankWeb Desk (October 11, 2018): World Bank Pakistan is in grip of weak economy, the situation will remain the same for upcoming two years.World Bank in its report under the head of ‘Pakistan Development Update’ further said deviation of the fiscal deficit from the target indicates the difficulty faced by federal government in running a credible fiscal policy if provincial governments are not legally bound to contribute to such a target.If this issue is not resolved, prudent fiscal policy will not be possible, and Pakistan will be exposed to another cycle of fiscal slippages. Simultaneously, the government needs to tackle other structural fiscal issues.Pakistan’s ability to raise funds from the global markets has been impacted by rising US treasury yields, and challenges faced by Turkey and Argentina which would squeeze liquidity from the emerging markets.The report says that the policy adjustments are needed to correct macroeconomic imbalances which are likely to decelerate GDP growth to 4.8 per cent during the current fiscal year as authorities tighten fiscal policy and adjust policy levers to correct the imbalances.The report suggests that GDP growth is expected to recover by FY2020 to 5.2pc as macroeconomic conditions improve. These projections depend on macroeconomic stability and supportive external environment, including relatively stable international oil prices and a strong recovery in exports.The subsequent contraction in domestic demand is likely to decelerate growth in the services sector to 5.1pc, agriculture sector to 3.5pc and industrial sector to 5pc during the current fiscal year.The widening twin deficits have increased the public debt-to-GDP ratio to 73.5pc, the highest ever since 2003. One-third of this increase is attributable to the depreciation of rupee against US dollar.The new regulatory duties are likely to impact the volume of imports, while also affecting inflation and the country’s export competitiveness.In addition to these short-term adjustments, Pakistan must implement a medium-term reform agenda to avoid finding itself in the same situation five years from now.Earlier on October 10, Finance Minister Asad Umar held a meeting with the President of World Bank, Dr. Jim Yong Kim on the sidelines of the World Bank/IMF Group Annual meetings in Bali, Indonesia.In the meeting, the current level of Pak-World Bank cooperation was reviewed.The Finance Minister shared with the World Bank leader, the vision of the new government and its priorities.Asad Umar also held a number of meetings on the sidelines of the World Bank/IMF Group Annual meetings.He also met with his Indonesian counterpart Sri Mulyani Indrawati and discussed matters pertaining to expansion of bilateral cooperation between the two countries.Finance Minister Umar emphasized expanding Pak-Indonesia trade relations.The Minister in this regard called upon the Indonesian side to expedite the process of ratification of the additional tariff lines granted to Pakistan after comprehensive review of the PTA in 2017.Congratulating the Finance Minister on assuming the office after recent elections in Pakistan, Sri Mulyani Indrawati reaffirmed Indonesia’s desire to expand bilateral relations and assured her support to address the points raised by the Pakistan side.The Minister also had meetings with senior officials of Multilateral Investment Guarantee Agency (MIGA) and OECD.Over 15,000 delegates from 189 countries are currently gathered at Bali, Indonesia for IMF/WB Group Annual meetings from 10-14 October 2018.The Finance Minister is leading Pakistan’s delegation, consisting of the Governor State Bank of Pakistan, Secretary, Economic Affairs Division and Special Secretary, Finance Division.Related News:abbtakk Abbtakk english Abbtakk News Abbtakk Pakistan Business Business News English English News Pakistan Is In Grip Of Weak Economy : World Bank Pakistan News pakistani news

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Reviews & Comments:
Yes, how correct the WB is in its opinion. But stable economies do not weaken overnight because of sound application of policies. In the PMLN government's final days it was the WB and IMF who were all praise for the economy and in a matter of months the economy has become weak. You gave the money, supervision and guidance and drove the PPP-PMLN combine to destroy Pakistan's economy. So... you are the guilty party and should not talk carelessly. Salams
NKAli, Karachi Shareef Oct 11, 2018

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