Pakistan's GDP to rebound to 1.7% in FY23-24: World Bank

ISLAMABAD: Pakistan’s GDP growth is projected to rebound to 1.7% in FY2023-24, according to the World Bank’s latest Pakistan development update.

According to details, the World Bank said in this year’s development report that inflation in Pakistan is likely to remain at 26.5% in FY2023-24, while it is expected to ease in the next fiscal year.

The World Bank report has called on the Pakistan government to reduce tax exemptions and increase revenue. Reforms should be made for tax collection in the agricultural and property sector, the report further added۔

The World Bank has also suggested raising the federal excise duty on cigarettes and demanded income tax reform and a reduction in import duty exemptions on various items.

The report has also urged to control the increasing losses in the energy sector and recommended a reduction in subsidies in the sector۔

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The World Bank called the inclusion of the private sector important in its report for improvement in various government agencies، The World Bank has said that discounted tax rates should be abolished and zero rate taxes should be limited in various fields۔

According to the report, poverty has risen to 39.4pc from 34.2pc in a year, due to unfavorable economic conditions in Pakistan. Over 11 million more people in Pakistan have fallen into poverty over the past year, largely due to inflation, rising fiscal deficits and the rupee’s devaluation.

The World Bank has called for spending control and sustainable economic reform and urged to make the Council of Common Interests (CCI) more active and effective.