AVN 67.80 Increased By ▲ 0.70 (1.04%)
BAFL 29.90 Increased By ▲ 0.15 (0.5%)
BOP 4.11 Increased By ▲ 0.04 (0.98%)
CNERGY 3.67 Decreased By ▼ -0.06 (-1.61%)
DFML 12.27 Increased By ▲ 0.02 (0.16%)
DGKC 44.95 Decreased By ▼ -0.41 (-0.9%)
EPCL 46.75 Decreased By ▼ -0.25 (-0.53%)
FCCL 12.23 Increased By ▲ 0.23 (1.92%)
FFL 6.13 Increased By ▲ 0.18 (3.03%)
FLYNG 6.15 Decreased By ▼ -0.03 (-0.49%)
GGL 12.10 Increased By ▲ 0.21 (1.77%)
HUBC 68.79 Increased By ▲ 0.29 (0.42%)
HUMNL 5.75 Increased By ▲ 0.03 (0.52%)
KAPCO 25.15 Decreased By ▼ -0.10 (-0.4%)
KEL 2.16 Increased By ▲ 0.02 (0.93%)
LOTCHEM 25.37 Increased By ▲ 0.01 (0.04%)
MLCF 25.50 Decreased By ▼ -0.20 (-0.78%)
NETSOL 78.10 Increased By ▲ 0.30 (0.39%)
OGDC 87.70 Decreased By ▼ -0.42 (-0.48%)
PAEL 11.54 Decreased By ▼ -0.11 (-0.94%)
PIBTL 4.11 Decreased By ▼ -0.01 (-0.24%)
PPL 67.53 Decreased By ▼ -1.18 (-1.72%)
PRL 13.18 Decreased By ▼ -0.07 (-0.53%)
SILK 0.90 Increased By ▲ 0.02 (2.27%)
SNGP 41.22 Decreased By ▼ -0.48 (-1.15%)
TELE 7.94 Decreased By ▼ -0.03 (-0.38%)
TPLP 15.40 Decreased By ▼ -0.02 (-0.13%)
TRG 112.78 Increased By ▲ 0.22 (0.2%)
UNITY 13.95 Decreased By ▼ -0.15 (-1.06%)
WTL 1.24 Increased By ▲ 0.01 (0.81%)
BR100 4,143 Increased By 1.1 (0.03%)
BR30 14,930 Decreased By -8.1 (-0.05%)
KSE100 40,852 Decreased By -26.1 (-0.06%)
KSE30 15,086 Decreased By -1.8 (-0.01%)
Follow us

ISLAMABAD: The World Bank has projected Pakistan’s GDP growth rate at two percent in the fiscal year 2022-23, half the pace that was anticipated last June, while saying that the country faces challenging economic conditions, including the repercussions of the recent flooding and continued policy and political uncertainty.

The bank in its latest report, “Global Economic Prospects” stated that Pakistan, with low foreign exchange reserves and rising sovereign risk, saw its currency depreciate by 14 percent between June and December and its country risk premium rise by 15 percentage points over this same period.

It further stated that as the country implements policy measures to stabilize macroeconomic conditions, inflationary pressures dissipate, and rebuilding begins following the floods, growth is expected to pick up to 3.2 percent in the fiscal year 2023-24, still below previous projections.

The report noted that the recent floods in Pakistan are estimated to have caused damage equivalent to about 4.8 percent of GDP. Extreme weather events can exacerbate food deprivation, cut the region off from essential supplies, destroy infrastructure, and directly impede agricultural production.

World Bank puts country’s external debt stock by end-2021 at $130.433bn

Pakistan faces mounting economic difficulties and Sri Lanka remains in crisis. In all regions, improvements in living standards over the half-decade to 2024 are expected to be slower than from 2010-19, the report noted.

The East Asia and Pacific (EAP) and the South Asia (SAR) are the only regions where real effective exchange rates did not strengthen significantly in 2022, due to the weakening Chinese renminbi and sharp nominal currency depreciations in Pakistan and Sri Lanka, respectively. Some areas of SAR also face particularly elevated risks, as illustrated by the damage wrought by recent flooding in Pakistan.

The report further stated that floods in Pakistan have inundated one-third of the country, while droughts in South America threaten agricultural production and larger ecosystems. Such extreme events are become increasingly likely as global warming heightens the expected losses and damages related to climate change.

In some economies, the deterioration in economic conditions has led to a substantial rise in poverty (Afghanistan, Pakistan and Sri Lanka). Many households are consuming less nutritious food, and rolling electricity blackouts have become common as fuel has been rationed.

The combination of limited foreign exchange buffers and widening external current account deficits encouraged several countries (Bangladesh, Pakistan) to approach the International Monetary Fund (IMF) for help in bolstering foreign exchange reserves and mitigating external financing pressures. In parallel, governments have tightened fiscal policies and, in some cases, imposed import controls and food export bans.

Copyright Business Recorder, 2023


Comments are closed.

World Bank projects 2pc growth

Intra-day update: rupee sees marginal improvement against US dollar

Exchange losses: ECC approves Rs27bn TSG for Kuwait Petroleum

Rs5bn PM’s ‘Ramazan Relief Package’ announced

15 mega initiatives included: Rs150bn ‘PM’s Youth Package’ announced

Joint sitting of parliament today: Anti-army chief smear campaign tops the agenda

IK agrees to one-point APC agenda proposal

Russia wants Chinese businesses to replace Western firms

Strong quake jolts parts of Afghanistan, Pakistan, India

Results of GDMP/GDMO: EPQL advised to submit detailed assumptions

Kuwait Petroleum receivables: PD seeks Rs27bn from MoF