Uncertainty and war mar Pakistan’s progress: WB
By Anwar Iqbal
Monday, 26 Apr, 2010 | 02:40 PM PST |
WASHINGTON: Political uncertainty and fighting continue to disrupt economic activity in Pakistan while other South Asian nations are expected to emerge stronger from the current global crisis, says a World Bank report.
In its Global Monitoring Report for 2010, the bank places Pakistan among the conflict-affected countries where “political uncertainty and fighting continue to disrupt economic activity”.
The only two other South Asian nations in this category are Afghanistan and Nepal. While the situation in Afghanistan is worse than in Pakistan, the bank observes that Nepal is beginning to show signs of improvement.
Compared to other nations in South Asia, these three are expected to face more moderate growth outturns.
India, Bangladesh and Bhutan are expected to emerge from the global crisis with stronger growth performances, backed by generally sound economic policies and greater resilience of trade, investment and remittances.
Sri Lanka is also forecast to post a relatively firm recovery, supported by the recent surge in capital inflows and improvement in investor confidence following the cessation of fighting after over three decades of civil war.
The report also places Pakistan among the countries where the growth has been weakest because they entered the global crisis with large internal and external imbalances.
In Pakistan, it severely constrained domestic demand. Sri Lanka and Maldives faced similar conditions.
Countries that entered the crisis with stronger fundamentals, such as Bangladesh, Bhutan and India, weathered the crisis better.