ISLAMABAD, Oct. 9 (Xinhua) -- The World Bank forecast a rise in economic uncertainties for Pakistan in the backdrop of political turmoil and inflating fiscal deficits, according to local reports Monday.
The World Bank's report on South Asian economies presented the outlook on economies like Pakistan, India, Sri Lanka, Bangladesh and the Maldives.
In its biannual South Asia Economic Focus report issued Monday, the World Bank said that it expected Pakistani economy to consolidate its upward growth momentum and economy at above 5 percent if Islamabad managed to arrest fiscal deficits and ensure external stability.
It further argued that Pakistan will have to reverse the trade and the fiscal imbalances and ensure continuation of reforms program for sustainable growth.
The report said that South Asian growth has stalled after leading the global growth for over two years. As per the findings, South Asia has slipped to the second place after East Asia and the Pacific region, largely due to temporary shocks and longer-term challenges.
The World Bank's report stated India was on the forefront of the regional slowdown due to internal factors such as fall in private investment, increase in exports and government spending.
World Bank's South Asia Region Vice President Annette Dixon said that "while growth rates in South Asia largely remain robust given the economic shocks that some countries in the region have faced, countries should continue to actively address their growing trade and fiscal deficits. With the right mix of policies to respond to challenges, we remain confident that South Asian countries can accelerate their growth to create more opportunities and prosperity for their people."
The World Bank highlighted Indian government's withdrawal of banknotes as the core reason behind the disruption in economic momentum. It said that uncertainties around the general sales tax also added to the woes. Growth is expected to slow from 8.6 percent in 2015 to 7.0 percent in 2017, it mentioned.
