Islamabad: Pakistan’s economy continues to stabilize and is expected to grow by 2.7% in the current fiscal year compared to 2.5% in the previous year.

According to Radio Pakistan, the World Bank’s latest Pakistan Development Update indicates that real GDP growth will be supported by recovering private consumption and investment, driven by subdued inflation, lower interest rates, and recovering business confidence.

The World Bank report highlights that Pakistan’s economy is stabilizing with easing inflation, improving financial conditions, and achieving current account and primary fiscal surpluses.

This edition of the Pakistan Development Update emphasizes the need for structural reforms to unlock opportunities for private capital mobilization aimed at improving Pakistan’s digital infrastructure and creating an enabling environment for the digital economy.

The Pakistan Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyzes policy challenges countries face.

Meanwhile, the Country Director of the World Bank for Pakistan, Najy Benhassine, stated that Pakistan’s key challenge is to transform recent gains from stabilization into economic growth that is sustainable and adequate for poverty reduction.