Pakistan’s 2020 economic growth to slow to 2.7%: World Bank

[Talwar e Pakistan]

From 6% to 2.7%, it really is a naya Pakistan.

 

[Rusty]

Where where you keyboard ecconomists in the last 40 years when Sharif and zardari were putting us in this situation?
Now that we have to pay the price for decades of mismanagement it's all 6 month old PTI fault.

All that stunted growth is the reason we are in this mess.

 

[That Guy]

From 6% to 2.7%, it really is a naya Pakistan.

That 6% was built on loans, so it was a lie

 

[Chhatrapati]

IMF and WB are not conspiring against poor countries. They do want you guys to pay off their debts and not write it off. Yes, IMF do write off debts at times. It is pointless to blame IMF and WB for your situation, these are your own making. IMF expect you to abide by their policies when they give loans, India have done that and it was proven beneficial in the 90's. IMF is reluctant now because you didn't adhere to the conditions of last loan. Now IMF put stiff condition before giving loan.

BTW, stopping imports is a stupid move, it'll only lead to more inflation and black market.

 

[danger007]

Am sorry to ask, i am not reading much on pak economy... but i come across plenty CPEC threads and projected growth rates .... what happened suddenly?..

 

[Chhatrapati]

That 6% was built on loans, so it was a lie

Only partly true, growth is calculated on infrastructure spending as an indicator. India had this growth mainly due to more spending in infra, just like China did. It is not bad, if it provides a greater benefit.

Pakistan did the right thing by spending more in infrastructure, but failed to do the same in some critical economic policies, like cutting subsidies and relieve the pressure on Fiscal deficit, taking advantage of low oil prices in 2014 increasing tax on it to maintain gas prices at the same level. Giving more subsidies put pressure on fiscal health. Which is what IMF have pressed on, demanding some cuts in the subsidies. Also, increases the tax net of citizens.

Like it or not : Otoh implementation of note ban was not ideal, it helped our GoI to increase tax net. Amnesty schemes for those who are ready to pay tax etc... proven to be important.

 

[Pakistani Fighter]

Pakistan’s economic growth will decelerate or slow to 3.4% in the 2019 financial year and 2.7% in the 2020 financial year.

The World Bank released a report in which it said this was the result of fiscal and monetary policies being tightened to address macroeconomic imbalances.

Domestic demand is expected to contract while at the same time export growth will be gradual, stated the report, adding that the agriculture and industrial sectors will grow less in these fiscal Year
Growth is expected to recover to 4% in the 2021 fiscal year as structural reforms take effect and macroeconomic conditions improve.

Remittances flows are likely to support the current account balance next year, according to the report. A more stable external environment will also support a pickup in economic activity starting from 2021.

Related: Dollar crosses Rs143 mark in the open market

According to the World Bank, the trade deficit is projected to remain high in 2019 but will narrow in the 2020 2021 fiscal years as the impacts of currency depreciation and other regulatory measures to curb imports set in.
Pakistan’s growth must be driven by investment and productivity, said Illango Patchamuthu, the World Bank’s country director for Pakistan.

The report noted that it is “entirely possible for Pakistan to transform its regulatory environment and reduce the cost of doing business”.

But it said that reforms to improve tax administration and widen the tax base are critical on the revenue front.

Over the adjustment period and beyond, actions outlined in the recently announced Ehsaas Program can protect the poor and vulnerable through social safety nets and safeguarding public spending on health and education, it added.

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https://www.samaa.tv/money/2019/04/pakistans-2020-economic-growth-to-slow-to-2-7-world-bank/

Time to kick Niazi out

 

[CrazyZ]

Am sorry to ask, i am not reading much on pak economy... but i come across plenty CPEC threads and projected growth rates .... what happened suddenly?..

Cpec is not a bad thing...but we need to reform our financial system as well to partially invest in infrastructure as well.

Boosting exports has been discussed but nothing has actually been done. I recall seeing a documentary on Japan and there government treated forex as a precious thing. The same tinking is not been present in Pakistan.

If India and Bangladesh does it then I suggest you make yours 10% but pray tell me does India and Bangladesh ask for bail out packages or have you seen their PM driving car for foreign delegations to churn out money

India and Bangladesh have received plenty of assistance from overseas. I've been to numerous presentation by GOI asking for investment (hand out as well) from western interests.

 

[hussain0216]

Time to kick Niazi out

Who the hell is going to fix this mess then?

Our whole problem is inept policies of past governments who made no structural reforms or changes

 

[Crusher]

That should not be a problem, Pakistan is in an economic reset mode. Also the growth rates in the past years were inflated and restricted only to mostly unproductive sectors like real estate, the growth wasn't taking place in agricultural or manufacturing sectors.

 

[CrazyZ]

Investment and bail out packages are two different things.hope you understand the difference.

GOI was pleading for the money. You weren't at the meetings. I can assure you.

 

[Ali Tariq]

Time to kick Niazi out

Yup, and it's time to bring Ishaq Dollar back. Then all of this mess will be cleaned. Noonies logic....!

 

[Śakra]

This is only the beginning. We warned you that taking on huge debt without increasing underlying productivity with come back to bite you hard! 2012 could very well be a contraction

 

[FOOLS_NIGHTMARE]

Guys who dont believe in world bank,ADB,IMF,Standards and Poors,Moodys and Fitch should just watch propaganda clips on whatsapp and social media and be happy.With the current financial management the things are actually very gloomy. I will not bet on a puncture specialist to fix a jet engine even if he does it for free.Reality of the fact is Asad Umar is just hot air with abundant cheap talk the sooner he is replaced the better it is for our future.

 

[danger007]

GOI was pleading for the money. You weren't at the meetings. I can assure you.

There you go started nonsense...