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Govt needs to do much more to put Pakistan on solid footing

Govt needs to do much more to  put Pakistan on solid footing

KARACHI: Pakistan continues its modest growth recovery and the growth rate is expected to rise to 4.8 percent in 2017, says the World Bank.
In its biannual Pakistan Development Update, the World Bank has praised the government for restoring economic stability, but noted that much of the country’s economic growth is underpinned by external influences such as low oil prices and strong remittances, while private and public investments continue to remain low.
“Pakistan has made great progress in restoring macroeconomic stability, but much more needs to be done to put Pakistan on a solid, economic growth footing,” said Illango Patchamuthu, World Bank country director for Pakistan. “Persistent, steady progress on the structural reform agenda will be necessary if Pakistan is to accelerate its growth recovery and lift millions more out of poverty.”
The latest Pakistan Development Update sets out recent developments across the economy and identifies risks and next steps facing Pakistan’s near-term future before focusing in on a handful of key development challenges.
The report highlights that the pace of Pakistan’s economic growth will accelerate modestly through 2019. However, significant risks remain and the country should guard against global slowdown by continuing to make key reforms, including expanding the electricity supply, boosting tax revenues, strengthening the business environment and encouraging private sector to invest.
The report identifies services and large-scale manufacturing as the key supply-side drivers of growth. Services are expected to grow over 5 percent in FY2016 while large-scale manufacturing, benefiting from low global commodity prices, is expected to grow between 4 and 4.5 percent. 

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