According to Global Economic Prospects report 2022 by World Bank, Pakistan’s growth will be 3.4 percent during the current fiscal year and will go up by 4 percent in the fiscal year 2022-23. The report is based upon the structural reforms, increasing exports, and improving the financial visibility of the power sector.
Along with these factors, there are some other supporting factors for the better prospects of Pakistan’s economy including improving domestic demand, record-high remittance inflow, a narrow targeting of lockdowns, and accommodative monetary policy.
World Bank has revised growth projections for the South Asian region because of better prospects in Bangladesh, India, and Pakistan. The international fund donor estimates that India’s economic growth will be 8.3 percent during the current fiscal year and 8.7 percent in the fiscal year 2022-23.
Read more: World Bank puts Pakistan growth rate at 1.3pc
According to the report, India’s economic growth will be better than the economic achievements of its neighboring countries. The report says that Bangladesh’s economic growth will be 6.4 percent during the current fiscal year and go up at 6.7 percent in the fiscal year 2022-23.
The economic growth of Nepal would be 3.9 percent in this fiscal year while it would be 4.7 percent in the next financial year. As far as world economic growth is concerned, the report says that it will be 4.1 percent as against the estimated figure of 5.5 in the current fiscal year.
Moreover, as per the report, the “Omicron-related economic disruption could substantially reduce growth” to as low as 3.4 percent. With reference to Pakistan, the report comments that the real interest rate came down during the year 2020 and remained negative through 2021.
The report says that the region’s monetary policy will be tightened but continue to be moderately accommodative in 2022 except in Pakistan where the high rate of inflation led to the removal of monetary accommodation. The report says that the fiscal challenges in Pakistan and Sri Lanka are having a negative impact on SAR’s growth.