WB changes its mind on Pakistan’s critical economic indicators

In an unusual development, the World Bank on Tuesday improved Pakistan’s two critical economic indicators within a short gap – revised upward the current year’s economic growth projection to 3pc from 2.6pc and reduced poverty estimates to 22.5pc compared to 25.3pc last year, without taking into account the latest household integrated economic survey (HIES). As part of the regional development outlook released on October 7, the World Bank had forecast Pakistan’s growth rate for the current year at 2.6pc, citing flood-related losses, down from its previous estimate of 3pc increase in gross domestic product (GDP). On Tuesday, at the launch of the Pakistan Development Update 2025 – usually a part of the regional economic outlook – the World Bank improved the GDP growth forecast to 3pc again, citing lower than estimated flood losses but also asserting that it did not have flood loss estimates as of yet.