Pakistan’s growth to be lowest in region

Pakistan's economic growth would be lowest in the region as it was expected to remain at 3.8 per cent in fiscal year 2012-2013 that would be lower than that of India, Sri Lanka, Bangladesh and even Nepal. rhe World Bank said in a new report.

The report, Global Economic Prospects January 2013, revealed that Pakistan's economic growth was estimated at 3.8 per cent, which was lower than the government's target of 4.2 per cent, during the ongoing financial year as against the region's largest economy, India, which was projected to growh 5.4 per cent.

The growth of Bangladesh has been projected at 5.8 per cent, Sri Lanka's GDP growth is estimated at 6.1 per cent while Nepal's growth has been pegged at 3.8 per cent in 2012-2013. Growth in Afghanistan's economy was around 11 per cent.

According to the report, the growth in the GDP of Pakistan was projected to remain broadly stable at 3.8 per cent in the 2012-13 fiscal year after remaining 3.7 per cent in 2011-12. Growth is projected to remain close to 4 per cent during 2014 and 2015, a rather sluggish pace as against regional peers.

Weak investment climate, infrastructure gaps, sovereign creditworthiness concerns, as also large fiscal deficits continued to pose obstacles to a sustained improvement in investment activity and economic performance. Electricity and gas shortages for the industrial and agricultural sectors, macroeconomic challenges including fiscal deficits and high inflation, and security uncertainties, had hurt productive business activities.

Meanwhile, in a new forecast earlier this week, the World Bank projected another year of slow global growth with the US budget showdown joining Europe's recession restraining the world economy.