The World Bank lowered its growth forecast.
According to the World Bank, GDP growth is expected to decline to 4.3 per cent in the current financial year from 5.6 per cent last year and is expected to be just four per cent next year.
Pakistan is going through a political crisis at the moment. Imran Khan (Imran Khan) have been removed from power prematurely and Shahbaz Sharif has been elected as the new Prime Minister in his place. Here the economy of Pakistan (Pakistan Economy) is in very bad shape. world Bank (World Bank) lowered Pakistan’s economic growth forecast for the current fiscal to 4.3 percent, which is more than one percent lower than the previous year. He said that the energy subsidy by the outgoing government (energy subsidiesThe decision taken at the last minute to give an additional burden on the budget and the International Monetary Fund (IMF).International Monetary Fund) created exposure to the program.
Hans Timmer, chief economist for the South Asia region at the World Bank, released a report on Wednesday titled Rules Reshaping Economic Focus in South Asia: The New Way Forward. He said that Pakistan first followed its agreement with the IMF to remove tax exemptions and increase taxes on fuel. But due to rising domestic energy prices and opposition pressure in politics, the Pakistan government had to give relief on electricity and fuel prices in February, he said.
The burden on the government’s budget has increased
Timer was quoted as saying in the Dawn newspaper that these steps of the Pakistan government may have reduced the volatility in domestic prices, but it increased the burden of the government’s budget. “Gross domestic product growth is expected to decelerate to 4.3 per cent in the current fiscal from 5.6 per cent last year and is expected to be just 4 per cent next year,” said Timmer.
Inflation may reach double digits
The World Bank said in its report that in the year 2022, there will be inflationary pressure on the whole world. It is believed that in Asian countries, the figure of inflation in Pakistan and Sri Lanka will cross double digital, after which it will decline next year.
India’s growth forecast downgraded
Here the World Bank has reduced the growth forecast for India. The World Bank has lowered its growth forecast for the current financial year from 8.7 per cent to 8 per cent. 8.7 per cent was estimated in January. After the Ukraine Crisis, the challenge of India’s economy has increased.
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Source: www.tv9hindi.com
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