The World Bank in a recent report, “Global Economic Prospects; Weak Investment in Uncertain Times,” has revised Pakistan’s growth rate upwards to 5.2 per cent for FY 2017, and 5.5 per cent for FY 2018. Previously, the growth forecast for the GDP of Pakistan was at 5 per cent for FY 2017 and 5.4 per cent for FY 2018. The report states that the improvement is due to a combination of low commodity prices, rising infrastructure spending, and reforms that lifted domestic demand and improved the business climate. The forecast is growth that will increase to 5.8 per cent in FY 2019-20, with improvements in agriculture, infrastructure, energy, and external demand.
The report stated that the successful conclusion of Special Drawing Rights (SDR) of US $4.393 Billion International Monetary Fund’s Extended Fund Facility (EFF) program, was aimed at supporting reforms and reducing fiscal and external sector vulnerabilities, and it helped lift consumer and investor confidence. The China-Pakistan Economic Corridor (CPEC) initiative is expected to increase investment further in the medium-term and help resolve some of the issues in the transportation and power sectors. The recent election was a democratic win for the country, and this reflects the positive changes Pakistan is experiencing.
New business startups are an important contributor to the economy in Pakistan. The emergence of small-scale enterprises is critical for growth and organizations are playing an essential role in identifying new opportunities through their incubator programs; resulting in employment opportunities and providing a growth impetus for the economy.