Inflation, trust-deficit main reasons for slow economic growth: WB reports
Business
WB has released Pakistan Development Update report
Islamabad: (Dunya News) The World Bank has released Pakistan Development Update report, in which it has emphasized on sustainable reforms to control the economic crisis in Pakistan.
The World Bank stated in the report that Pakistan is facing slow economic growth and high inflation. The current fiscal year is expected to have a GDP growth rate of only 0.4%, and inflation is expected to remain at a high level of 29.5% until June.
The report highlights that the reason for inflation is the increase in energy and food prices, economic activities are slow mainly because of trust deficit , restrictions on income, and the devastation caused by floods. The report also mentioned that the strict financial policy was adopted late.
According to the World Bank report, Pakistan faced a shortage of foreign exchange reserves due to unofficial exchange rate limit and harsh global conditions.
The report further mentioned that Pakistan is facing delays in completing of IMF program evaluation, an increase in debt and a rapid decline in forex reserves.
