World Bank sees Pakistan FY17 growth at 5.2 pct, highest in nine years | Reuters

By Kay Johnson
| ISLAMABAD

ISLAMABAD May 20 The World Bank on Saturday
forecast Pakistan’s GDP growth in fiscal year 2017 to climb to
5.2 percent, the highest expansion rate in nine years, boosted
by consumer confidence and fiscal reforms.

Growth is expected to accelerate to 5.5 percent in FY18 and
5.8 percent in FY19, according to a World Bank report released
on Saturday.

But it warned that weakening trade and fiscal balances made
it crucial to continue reform efforts and to develop skills to
find jobs for the country’s growing youth population.

“Pakistan’s accelerating growth is good news and reflects
the country’s success in building confidence. But the pace of
reforms has slowed and it is important for the structural
reforms to accelerate,” said Illango Patchamuthu, World Bank
country director for Pakistan.

The World Bank forecast came the same day as Pakistan’s
central bank estimated slightly higher real GDP growth in FY17
of 5.3 percent, which would represent a 10-year high.

Private sector credit showed a net expansion of 503 billion
rupees ($4.81 billion) during the nine months through April,
well above the 334 billion-rupee expansion recorded in the
corresponding period of last year, the central bank said in a
statement.

The World Bank’s twice-yearly report was released in Lahore
on Saturday in collaboration with Lahore School of Economics.

It said a moderate increase in investment was expected to
supplement growth, driven primarily by public and private
consumption.

The report said there need to be more technical and
vocational training programme to boost job prospects for the
“youth bulge”. Sixty percent of Pakistan’s estimated population
of 190 million is under the age of 30.

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It emphasized that federal and provincial governments must
work together on reforms, since many policies are handled at the
province level.

“Effective collaboration between federal and provincial
governments will be crucial if Pakistan has to deliver on its
growth potential” said Muhammad Waheed, World Bank senior
economist for Pakistan.
(Editing by Andrew Roche)

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