World Bank predicts a 1.7% growth in Pakistan's GDP in FY23–24.

 ISLAMABAD: In FY2023–24, Pakistan's GDP growth is anticipated to return to 1.7%, according to the most recent Pakistan development update from the World Bank.

Details indicate that the World Bank predicted that Pakistan's inflation will likely continue at 26.5% in FY2023–24 while decreasing in the following fiscal year.

The Pakistani government has been urged by the World Bank study to remove tax exemptions and boost income. The study also stated that changes should be made to improve tax collection in the agriculture and real estate sectors.

The World Bank has also advocated income tax reform, a rise in the federal excise tax on cigarettes, and a reduction in the import duty exemptions on a variety of goods.

Additionally, the study pushed for a decrease in sector subsidies and called for a stop to the energy industry's rising losses.

The World Bank deemed the private sector's involvement in its study on government agency improvement to be crucial. According to the World Bank, zero percent tax rates should be restricted in some industries and reduced tax rates should be eliminated.

In Pakistan, negative economic conditions have caused poverty to increase from 34.2 percent to 39.4 percent in a year, according to the research. Due mostly to inflation, escalating budget deficits, and the depreciation of the rupee, more than 11 million additional individuals in Pakistan have slipped into poverty during the previous year.

The Council of Common Interests (CCI) should be made more active and effective, the World Bank suggested, along with sustainable economic change.