Pakistan's economy likely to grow by 2% in next fiscal year: World Bank

The World Bank has projected Pakistan's economy to grow by two per cent in the next fiscal year, much lower than the 3.5 per cent target set by the country's top economic body, saying the lasting effects of the August 2022 floods, along with policy uncertainty and limited foreign exchange resources have depressed activity in the country.

The conflicting estimates by the World Bank and the National Economic Council came on Tuesday, reported the Dawn newspaper.

In Pakistan, the lasting effects of the August 2022 floods, along with policy uncertainty and limited foreign exchange resources to pay for imports of food, energy, and intermediate inputs, have depressed activity, with industrial production contracting by about 25 per cent in the year to March 2023, the bank said in its latest Global Economic Prospects report.

It said that the continuing effect of last year's floods in Pakistan, compounded by worsening social tensions, high inflation, and policy uncertainty, is estimated to ha