Pakistan development update : managing risks for sustained growth (English)

Pakistan's economic performance remained robust during the fiscal year 2017 (FY17) as growth continued to accelerate, reaching its highest level in the last decade, while inflation stayed well below target. Growing fiscal and external imbalances, however... See More + Pakistan's economic performance remained robust during the fiscal year 2017 (FY17) as growth continued to accelerate, reaching its highest level in the last decade, while inflation stayed well below target. Growing fiscal and external imbalances, however, have eroded the hard-earned gains in restoring macroeconomic stability in the last three years and they could affect the country's growth prospects if not addressed. The fiscal deficit expanded to its highest level during the last three years as revenue mobilization weakened and expenditures rose at both the provincial and federal levels. Simultaneously, the external account deteriorated sharply due to a widening trade deficit and a fall in international remittances. The objective of this report is to apprise the government of Pakistan, think-tanks and researchers, the public and The World Bank's senior management of the state of Pakistan's economy, outlook, structural reforms and development challenges. The report begins with a chapter on economic developments, with sections on growth, fiscal policy, public debt, the external sector, and inflation and monetary developments. The second chapter provides a medium-term macroeconomic outlook and describes upcoming challenges, and structural reform needs. The third chapter focuses on progress against social indicators. The final chapter addresses entrepreneurship in Pakistan from the perspectives of jobs, enabling new startup businesses, women's entrepreneurship and export competitiveness.  See Less -