ISLAMABAD -- Pakistan's economy is expected to grow in the short- and medium-term, according to the Global Economic Prospects report published by The World Bank Wednesday (January 10).
Economic growth in Pakistan is forecast to increase by 5.5% in the fiscal year 2017-2018. The report cites "strong activity in construction and services, a recovery in agricultural production, and robust domestic demand supported by strong credit growth and investment projects" as reasons for the positive outlook.
Over the medium term, that figure is expected to reach an average of 5.9%, according to the report.
Risks to Pakistan's growth, and the South Asian region, are mainly domestic. Potential issues include fiscal slippages, liabilities from infrastructure projects, general elections-linked slippages and weak tax revenues that could hinder fiscal consolidation.
Pakistan's growth accelerated in the fiscal year 2016-17 to 5.3%, slightly below the government's target of 5.7% due to slower than expected growth in the industrial sector.