Devastated by flood, Pakistan's economy South Asia's weakest: World Bank

Devastated by floods, Pakistan’s economy is the weakest in South Asia, said the World Bank, forecasting Pakistan’s economic growth will slow further to 2 per cent during the current year.

Amid economic slowdown, growing inflation and poverty in Pakistan, World Bank noted “Policy uncertainty further complicates the economic outlook” of the neighbouring country.

According to World Bank’s Global Economic Prospects report, Pakistan’s economic output is not just declining itself but bringing down the regional growth rate as well.

Meanwhile, a Pakistan newspaper reported that the World Bank has also delayed approval of two loans worth $1.1 billions, until next fiscal year.

The World Bank’s report said that a herculean effort would be required to pull Pakistan out of poverty.

“This pace reflects still robust growth in India, Maldives, and Nepal, offsetting the effects of the floods in Pakistan and the economic and political crises in Afghanistan and Sri Lanka,” the report reads. "The deteriorating global environment, however, will weigh on investment in the region."

The unprecedented floods in Pakistan in July last year were cited as the main reason for the faltering economic situation by the World Bank.

It is worth recalling that almost one-third of Pakistan was devastated by the floods which directly impacted about 15 per cent of the country’s population.