World Bank Forecasts Pakistan’s GDP Growth at 2.8% for FY 2024-25

Islamabad:The World Bank has forecasted Pakistan’s GDP growth to remain at 2.8% for the fiscal year 2024-25. This comes after the International Monetary Fund (IMF) predicted a 3% GDP growth for the same period.

The World Bank’s “Global Economic Prospects Report 2025” reflects a 0.5% improvement compared to June 2024. The IMF’s forecast stands at 3%, while the government estimates a 3.6% growth rate for the economy.

According to the report, Pakistan is expected to grow at a rate of 3.2% in the next fiscal year. However, the country is projected to have the lowest growth rate in the region. In comparison, India is expected to grow at 6.7%, Bhutan at 7.2%, Maldives at 4.7%, Nepal at 5.1%, Bangladesh at 4.1%, and Sri Lanka at 3.5%.

The report also mentions that uncertainty has reduced somewhat after the February elections. Inflation has dropped to a single-digit figure for the first time since 2021, and Pakistan’s foreign exchange reserves have increased due to the implementation of strict fiscal and monetary policies. The report suggests that moderate inflation will boost business and investor confidence. However, it warns that Pakistan’s per capita income is likely to remain weak until 2026.

Furthermore, the report forecasts that Pakistan, Bangladesh, and Sri Lanka will continue to experience weak per capita income growth. However, both Pakistan and Bangladesh will see an increase in interest payments on their debts. It also predicts a gradual decline in the debt-to-GDP ratio. Pakistan must remain fully committed to the IMF loan program; failure to adhere to the program could negatively affect economic activities.