ISLAMABAD, Oct 22 (APP):Advisor to the Finance Minister Khurram Schehzad on Thursday said the World Bank (WB) had acknowledged Pakistan’s progress in restoring macroeconomic stability, strengthening fiscal discipline and advancing structural reforms, while highlighting the country’s potential to significantly increase per capita incomes by 2050.
In a post on social media platform X, the advisor while highlighting the key findings of the World Bank’s latest Pakistan Development Update, titled Attaining Escape Velocity, released in October 2026, said the report recognized the improvement in Pakistan’s economic indicators and outlined opportunities for achieving higher and sustainable growth through continued reforms.
According to the report, Pakistan’s gross domestic product (GDP) growth increased to 3.7 percent in fiscal year 2026, compared with 3.2 percent in FY2025, despite global and regional challenges.
The report also highlighted an improvement in fiscal performance, with the primary fiscal surplus reaching 2.9 percent of GDP, supported by higher revenues and expenditure discipline.
It further noted that strong workers’ remittances had supported the rebuilding of foreign exchange reserves, while sovereign credit rating upgrades by international agencies S&P and Moody’s reflected improved confidence in Pakistan’s economic outlook.
Pakistan’s return to international debt markets through a $3 billion Eurobond issuance was also cited as a sign of renewed access to international financing.
Highlighting structural reforms, the report pointed to measures in the energy sector, trade liberalization and privatization. Energy subsidies declined from 1.1 percent of GDP in FY2025 to 0.8 percent in FY2026, while implementation of the National Tariff Policy continued.
The report also referred to the privatization of Pakistan International Airlines (PIA) and broader efforts to reduce the state’s footprint in the economy, identifying these measures as important steps towards encouraging investment and promoting private-sector-led growth.
The World Bank said Pakistan could unlock sustained annual economic growth of between 6.2 and 6.9 percent through accelerated structural reforms.
It further indicated that ambitious and sustained reforms could enable Pakistan to substantially increase per capita incomes, potentially reaching the current income level of Viet Nam by 2050.
World Bank Country Director Bolormaa Amgaabazar said Pakistan had made real progress in restoring stability and that markets had taken notice.
The update underscores the importance of sustaining reform momentum to accelerate per capita income growth, attract private investment and create jobs.
Source: APP (Associated Press of Pakistan)
