Pakistan's growth rate insufficient for poverty alleviation: WB report

ISLAMABAD: The World Bank has projected Pakistan’s GDP growth at 3% in FY 2025-26 in its “Pakistan Development Update 2025.

The lender in its report said that it expects the country’s GDP growth in current year to remain at 3%. “The growth is projected to pick up to 3.4% in the next year but will likely remain constrained amid tight fiscal policies aimed at rebuilding buffers amid global policy uncertainty and vulnerability to natural disasters and climate shocks.”

The report said that existing economic growth rate has been insufficient for the poverty alleviation.

“Each year 1.6 million youth join the job market in Pakistan. The country’s poverty rate likely to remain 21.5 percent this year,” according to the report.

The bank’s report stressed for enhanced economic growth rate for poverty alleviation and improvement in standards of life.

WB’s Country Director Bolormaa Amgaabazar stressed that “staying the course on reforms and accelerating job creation is critical to maintaining growth along with strengthening social safety nets and infrastructure that protects the most vulnerable citizens, and that will help ensure sustainable development and economic resilience for all”.

The World Bank has projected 7.2 % inflation in current year, which could drop to 6.8 percent in the next financial year.

The report also stressed for enhanced exports to create job opportunities.

“Pakistan’s export sector faces several challenges and hurdles,” according to the report.