ISLAMABAD: The World Bank on Tuesday said Pakistan’s economy enjoyed a strong recovery and grew 5.6 percent in Fiscal Year 2021 (FY21) due to the government’s measures to mitigate the adverse socio-economic impacts of the COVID-19 pandemic.
Prime Minister Shehbaz Sharif’s new administration of in Pakistan has decided to start engaging the International Monetary Fund (IMF) for the completion of a seventh review of the $6 billion loan program signed between the two sides in July 2019 to overcome economic hardships.
Sharif, who was elected on April 1, faces the daunting task of managing a stuttering economy with huge deficits.
But the World Bank, in its Pakistan Development Update on Tuesday, said the economic activity maintained its momentum during July-December 2021 in Pakistan.
“Pakistan’s economic recovery after the COVID-19 crisis indicates that the country has enormous potential to overcome challenging economic situations,” said Najy Benhassine, the World Bank country director for Pakistan.
“However, sustaining the economic recovery requires addressing long-standing structural weaknesses of the economy and boosting private sector investment, exports and productivity.”
The World Bank report highlighted with “economic recovery and improved labor market conditions, poverty — measured at the lower middle-income class poverty line of $3.20 Purchasing Power Parity 2011 per day — declined from 37 percent in FY20 to 34 percent in FY21.”
It said macroeconomic risks remain very high for the South Asian country. These include tighter global financing conditions, potential further increases in world energy prices, and the possible risk of a return of stringent COVID-19-related mobility restrictions.
Domestically, the report said, political uncertainty and policy reform slippages could also lead to protracted macroeconomic imbalances.
“To mitigate immediate macroeconomic risks, the government should focus on containing the fiscal deficit at a level which ensures debt sustainability, closely coordinate fiscal and monetary policy, and retain exchange rate flexibility,” said Zehra Aslam, the lead author of the report.
Pakistan economy enjoys strong recovery after COVID-19 crisis – World Bank
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Pakistan economy enjoys strong recovery after COVID-19 crisis – World Bank
- The recovery indicates Pakistan has enormous potential to overcome economic situations, says World Bank report
- Government should focus on containing the fiscal deficit to mitigate immediate macroeconomic risks, it suggests
Pakistan says 13 militants killed in counterterror operations in northwest
- Security forces kill 13 militants in northwestern Bannu and Mohmand districts, says military’s media wing
- Military vows to continue action against militants at “full pace” to eliminate “foreign-sponsored terrorism“
PESHAWAR: Security forces killed 13 militants affiliated with the Tehreek-e-Taliban Pakistan (TTP) or Pakistani Taliban this week in the country’s northwestern Khyber Pakhtunkhwa (KP) province during two counterterror operations, the military’s media wing said on Sunday.
The first of the two operations, which took place on Dec. 12-13, was carried out in KP’s Mohmand district. Seven militants belonging to the TTP were killed during the operation, the Inter-Services Public Relations (ISPR) said in a statement.
The second operation took place in Bannu district where six militants were killed. The ISPR said security forces were carrying out sanitization operations in the area to eliminate any more “Indian-sponsored kharji” in the area.
“Security Forces and Law Enforcement Agencies of Pakistan will continue at full pace to wipe out the menace of foreign-sponsored and supported terrorism from the country,” the ISPR vowed.
Pakistan’s military frequently uses the term “khawarij” to describe the TTP. It accuses India of arming and funding militant groups in KP and Balochistan provinces, charges that New Delhi has denied.
Islamabad alleges that TTP militants and other outfits plan militant attacks on Pakistan from Afghanistan and enjoy sanctuary in the country.
Kabul rejects these allegations and says it cannot be held responsible for Pakistan’s security, which it says is Islamabad’s internal matter.
These allegations have triggered tensions between Pakistan and Afghanistan, resulting in deadly border clashes in October that killed dozens of soldiers.
