ISLAMABAD: The World Bank on Saturdayforecast Pakistan´s GDP growth in fiscal year 2017 to climb to5.2 percent, the highest expansion rate in nine years, boosted
by consumer confidence and fiscal reforms.
Growth is expected to accelerate to 5.5 percent in FY18 and5.8 percent in FY19, according to a World Bank report releasedon Saturday.
But it warned that weakening trade and fiscal balances madeit crucial to continue reform efforts and to develop skills tofind jobs for the country´s growing youth population.
"Pakistan´s accelerating growth is good news and reflectsthe country´s success in building confidence.
But the pace ofreforms has slowed and it is important for the structuralreforms to accelerate," said Illango Patchamuthu, World Bankcountry director for Pakistan.
The World Bank forecast came the same day as Pakistan´scentral bank estimated slightly higher real GDP growth in FY17of 5.3 percent, which would represent a 10-year high.
Private sector credit showed a net expansion of 503 billionrupees ($4.81 billion) during the nine months through April,well above the 334 billion-rupee expansion recorded in thecorresponding period of last year, the central bank said in astatement.
The World Bank´s twice-yearly report was released in Lahoreon Saturday in collaboration with Lahore School of Economics.
It said a moderate increase in investment was expected tosupplement growth, driven primarily by public and privateconsumption.
The report said there need to be more technical andvocational training programme to boost job prospects for the"youth bulge".
Sixty percent of Pakistan´s estimated populationof 190 million is under the age of 30.It emphasized that federal and provincial governments mustwork together on reforms, since many policies are handled at theprovince level.
"Effective collaboration between federal and provincialgovernments will be crucial if Pakistan has to deliver on itsgrowth potential" said Muhammad Waheed, World Bank senioreconomist for Pakistan.