World Bank projects 5.8 % growth

The World Bank has projected GDP growth for Pakistan to reach 5.8% in FY18, but warned that macroeconomic imbalances are widening as macroeconomic and political risks have increased. The WB report titled “South Asia Economic Focus, Jobless Growth?” states balance of payments position is particularly vulnerable at the current level of reserves. Upcoming elections may delay decisive policy adjustment, such as increased exchange rate flexibility and fiscal consolidation, until after the elections. The WB maintained that every month, the working age population increases by 250,000 people and Pakistan must create 1.4Mn jobs a year to maintain its employment rate.