The World Bank’s Global Economic Prospects Report indicates that Pakistan’s GDP growth rate is projected to be 2.8% in 2025, marking the lowest in South Asia. Although this marks a modest 0.5% improvement from June 2024, it still trails behind the IMF’s projection of 3% and the government’s goal of 3.6%.

Regional Comparison

While Pakistan's growth rate lags, other South Asian countries like India, Bhutan, and the Maldives are expected to perform better. The World Bank anticipates Pakistan’s growth rate will edge up to 3.2% in the coming fiscal year.

Signs of Recovery

Encouragingly, Pakistan’s current account surplus has shown positive signs, reaching $1.21 billion between July and December 2024. This indicates a partial recovery in the country's external financial position.

Ongoing Challenges

Despite these improvements, Pakistan continues to face significant economic hurdles. Factors such as inflation, policy uncertainty, and external debt pressures remain persistent challenges, contributing to slower growth compared to regional peers.

Path Forward

To close the economic gap with its neighbors, Pakistan will need to implement structural reforms and focus on long-term economic stability. While the modest growth and current account surplus suggest some recovery, substantial efforts are required to enhance economic growth and maintain financial stability.

Conclusion

This World Bank report signals minor progress but underscores the need for significant reforms and sustained efforts to improve economic growth and stability in Pakistan amidst regional competition.
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