From Sajjad Hussain Islamabad, Apr 15 (PTI) Pakistan's economy is set to grow by 4.4 per cent in current fiscal year ending on June 30, as the country stand at the bottom of eight economies in South Asia, according to a World Bank report.
The Spring 2015 edition of the World Bank's South Asia Economic Focus, titled 'Making the most of cheap oil', states that the growth recovery is underway in Pakistan but this year it will only show moderate growth.
The WB prediction is in line with that of International Monetary Fund and the Asian Development Bank that are also seeing around 4.3 per cent growth, the Express Tribune said.
The international projection is significantly lower than the official Finance Ministry target of 5.1 per cent. WB said that South Asia is expected to grow at a fastest pace in the world, with India spearheading regional growth with a 7.5 per cent growth rate.
Pakistan is only above the worst performing regional economy, Afghanistan, projected to grow at a rate of 2.5 per cent.
Next year, Afghanistan will surpass Pakistan with 5 per cent expected growth while Pakistan is projected to grow only at 4.6 per cent.
The WB said Pakistan is helped by cheap international oil prices and steady implementation of its reforms programme.
The agency has again highlighted power load-shedding, a cumbersome business environment, and low access to finance as obstacles to the growth.
The circular debt remains a major obstacle that the Bank estimated at Rs 245 billion.