Bullhead
BANNED
- Joined
- Oct 29, 2009
- Messages
- 171
- Reaction score
- 0
Pakistan's macroeconomic medium term outlook is uncertain and remains fragile, the World Bank said late on Thursday, due to the uneven implementation of reforms, fiscal instability and a volatile political and security environment.
"The fiscal year 2009/10 looks difficult," the World Bank said in Economic Update for Pakistan in September.
(To view report see link.reuters.com/num76f )
The Bank said fiscal instability is likely to continue due to poor revenue collection, and the target for the budget deficit in the first quarter ending Sept. 30 is likely to be missed.
"Failure to raise revenues going forward would further heighten Pakistan's vulnerability to shocks, and jeopardise country's development efforts by limiting resources available for planned investments in human and physical infrastructure," the Bank said.
The International Monetary Fund came to the rescue with a $7.6 billion bail-out last November to help Pakistan avert a balance of payments crisis.
In July, the IMF boosted the the package to $11.3 billion, of which just over $5 billion has already been disbursed. Pakistan officials are due to meet IMF officials in Dubai from Nov. 2 to Nov. 12 for a third review of the country's economic performance.
In addition to the IMF cash, Pakistan has secured loans from multi-lateral donors such as the World Bank and Asian Development Bank.
Pakistan achieved high economic growth earlier this decade partly due to heavy reliance on external finances, but failed to raise revenue and savings, which left the economy vulnerable to external shocks, the bank said.
The World Bank is projecting GDP growth for fiscal year 2009/10 at 3.0 percent, lower than the government's target of 3.3 percent but higher from 2.0 percent achieved in the previous fiscal year.
The current account deficit and fiscal deficit for the fiscal year ending June 30 is projected at 4.7 percent of GDP and 4.9 percent of GDP respectively.
Next year looks tough for Pakistan - World Bank | Reuters
"The fiscal year 2009/10 looks difficult," the World Bank said in Economic Update for Pakistan in September.
(To view report see link.reuters.com/num76f )
The Bank said fiscal instability is likely to continue due to poor revenue collection, and the target for the budget deficit in the first quarter ending Sept. 30 is likely to be missed.
"Failure to raise revenues going forward would further heighten Pakistan's vulnerability to shocks, and jeopardise country's development efforts by limiting resources available for planned investments in human and physical infrastructure," the Bank said.
The International Monetary Fund came to the rescue with a $7.6 billion bail-out last November to help Pakistan avert a balance of payments crisis.
In July, the IMF boosted the the package to $11.3 billion, of which just over $5 billion has already been disbursed. Pakistan officials are due to meet IMF officials in Dubai from Nov. 2 to Nov. 12 for a third review of the country's economic performance.
In addition to the IMF cash, Pakistan has secured loans from multi-lateral donors such as the World Bank and Asian Development Bank.
Pakistan achieved high economic growth earlier this decade partly due to heavy reliance on external finances, but failed to raise revenue and savings, which left the economy vulnerable to external shocks, the bank said.
The World Bank is projecting GDP growth for fiscal year 2009/10 at 3.0 percent, lower than the government's target of 3.3 percent but higher from 2.0 percent achieved in the previous fiscal year.
The current account deficit and fiscal deficit for the fiscal year ending June 30 is projected at 4.7 percent of GDP and 4.9 percent of GDP respectively.
Next year looks tough for Pakistan - World Bank | Reuters
