LAHORE: World Bank (WB), in its latest report, has warned Pakistan over the rising macroeconomic risks in 2017, discussing that the removal of ex-PM Nawaz Sharif has created policy uncertainty and increased political threat.
It was highlighted that the general election next year would divert attention from economic instability which will discourage private investment and economic reforms due to the rise of political uncertainty in the country.
WB has warned that the country’s reserves will be severely affected if current account deficit continued to haunt the economy. The report titled “The South Asia Economic Focus Fall 2017” was released on Sunday and highlighted Pakistan’s deteriorating economy after the end of IMF programme almost one year ago.
The report warned that the concerns regarding imbalance of international reserves, current account deficit and service of external debt should be addressed as soon as possible. Under recommendations, WB suggested the revival of exports, decreasing imports, and ensuring stable remittance flow.
Pakistan could face large-scale macroeconomic deterioration during 2018 general elections and the amount of debt will reach a high level.
