Pakistan Development Update, May 2017 : Growth - A Shared Responsibility
Pakistan's economy continues to grow strongly, emerging as one of the top performers in South Asia. Beneath the surface, however, a number of warning signs are emerging. Revenue growth is slowing, with the fiscal deficit growing for the first...
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| Format: | Report |
| Language: | English en_US |
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World Bank, Islamabad
2017
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| Online Access: | http://documents.worldbank.org/curated/en/536431495225444544/Pakistan-Development-Update-Spring-2017 http://hdl.handle.net/10986/27544 |
| Summary: | Pakistan's economy continues to
grow strongly, emerging as one of the top performers in
South Asia. Beneath the surface, however, a number of
warning signs are emerging. Revenue growth is slowing, with
the fiscal deficit growing for the first time in three
years. Exports continue to fall as imports grow,
substantially increasing the current account deficit.
Investment rates - already low - fell further in FY16 (the
latest data available). Finally, the energy sector circular
debt has resurfaced. These emerging concerns suggest that
renewed policy emphasis is required on macroeconomic
stability - to prevent the country from losing the
impressive gains achieved over the past four years - and
other structural reforms such as those required in the
energy sector. While the federal government necessarily
carries the majority of this burden, provincial governments
also have a part to play. The special sections of this
update analyze some of the specific challenges facing
Pakistan's most populous province, Punjab, including
increasing own-source revenue, equipping youth with
employable skills and ensuring the poor share in the
benefits of growth. Punjab, along with federal and other
provincial governments, is also confronted with the urgent
task of lifting agricultural productivity and addressing
distortive subsidies, which are impeding growth. |
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