World Bank for the current financial year Pakistan Lowered the estimate for the country’s economic growth rate to 4.3 percent, which is about one percent less than the year before. He said the last-minute decision to provide energy subsidies from the outgoing government placed an additional burden on the budget and International Monetary Fund (IMF) a risk arose for the program. Hans Timmer, chief economist for the South Asian region at the World Bank, published the report on Wednesday entitled ‘Rules Reshaping Economic Focus in South Asia: The New Way Forward’. He said 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 Pakistani government had to provide relief on electricity and fuel prices in February, he said.
Hours were quoted as saying in the Dawn newspaper news: “These steps by the Pakistani government may have reduced the volatility of domestic prices, but it increased the burden on the government budget.”
“GDP growth is expected to slow to 4.3 percent in current fiscal policy from 5.6 percent last year and is expected to be only four percent next year,” Timmer said.