After almost 22 years of political struggle, Imran Khan and his party, the Pakistan Tehreek-e-Insaf PTIhave finally emerged victorious in what appears to be, despite allegationsone of the most civil electoral exercises the country has witnessed in the last few decades.
Oil prices have softened recently, despite the extension of the production cuts led by the Organization of the Petroleum Exporting Countries OPEC and the strengthening global recovery. Non-oil growth is generally recovering, but the muted medium-term growth prospects highlight the need for countries to push ahead with diversification and private sector development.
Most countries have outlined ambitious diversification strategies and are developing detailed reform plans, but implementation should be accelerated, particularly to exploit the stronger global growth momentum. Oil exporters should continue pursuing deficit-reduction plans to maintain fiscal sustainability and, where relevant, to support exchange rate pegs.
Some countries will need to identify additional fiscal consolidation measures, while protecting social and growth-oriented expenditures.
Financial stability risks appear low, although pockets of vulnerabilities remain. The outlook for countries in conflict remains highly uncertain, with growth dependent on security conditions.
This positive momentum is expected to persist into the medium term, lifting growth further to 4. However, even at this pace, growth will remain below what is needed to effectively tackle the unemployment challenge facing the region.
The balance of risks to the regional outlook remains tilted to the downside. To leverage the global upswing and secure resilience, policy priorities continue to include growth-friendly fiscal consolidation and stronger monetary policy frameworks in countries transitioning to more flexible exchange rates.
Structural reforms need to accelerate to improve the business environment, create jobs, fully take advantage of the global growth momentum, and boost inclusive growth. No Room for Complacency Growth in the Caucasus and Central Asia CCA started to pick up during the second half ofand is projected to accelerate further in and beyond.
However, medium-term growth is forecast to remain below historical norms. Reforms promoting diversification away from remittances and commodities should therefore be accelerated to secure strong, sustainable, and inclusive growth.
Fiscal consolidation should continue to ensure that buffers are rebuilt, public expenditure channeled efficiently, tax collection improved, and social safety nets protected. Monetary policy frameworks should be strengthened further, including by establishing clear objectives, safeguarding central bank independence, and enhancing communication.
Deep-rooted weaknesses in highly dollarized banking sectors— which are not in a position to support growth in some countries—should be addressed promptly. Illustrative calculations suggest that achieving greater trade openness, coupled with increased global value chain GVC participation, export diversification, or product quality could raise the level of income by some 5—10 percent within the following five to ten years.
Oil importers are better placed than other countries in the region to take advantage of the improved outlook for global trade, given their better integration into GVCs and more diversified export bases.
However, oil importers could still improve the quality of their exports. In contrast, oil exporters should focus on economic diversification to produce and export a broader range of goods and services.
Structural reforms to foster investment and job creation, as well as targeted fiscal policies to mitigate adjustment costs, may be needed to relieve any negative consequences of increased openness and to ensure the resulting boost to growth is as inclusive as possible.
Back to Top Chapter 5 Fintech: For both regions, fintech has the ability to address the critical challenges of enhancing financial inclusion, inclusive growth, and economic diversification through innovations that help extend financial services to the large unbanked populations, and facilitate alternative funding sources for small and medium-sized enterprises SMEs.
Fintech could also make an important contribution to financial stability by harnessing technology for regulatory compliance and risk management, and can facilitate trade and remittances by providing efficient and cost-effective mechanisms for cross-border payments, while the use of electronic payments can improve the efficiency of government operations.
To unlock this potential, further reforms are needed to close gaps in the regulatory, consumer protection, and cybersecurity frameworks as well as improve the business environment, information communication technology ICT infrastructure, and financial literacy.The Sixteenth Annual International Conference on Policy Challenges for the Financial Sector, co-hosted by the World Bank Group, the International Monetary Fund, and the Board of Governors of the Federal Reserve System, took place on June , in Washington, D.C..
The central theme of this year’s conference was “Finance in Flux: The Technological Transformation of the Financial Sector”.
Nearly 6 million Afghans fled after violence erupted in the late s, primarily to Iran and Pakistan. While millions returned after the collapse of the Taliban in , the security situation has since deteriorated and the government struggles to meet the needs of vulnerable populations, particularly the internally displaced. This country profile explores Afghanistan’s complex migration. Pakistan is facing 'serious economic challenges' and it needs to carry out a set of comprehensive economic reforms, the International Monetary Fund said hours after it approved financial. Watch video · Pakistan, the IMF and China: Imran Khan's economic challenges Why Pakistan's new leader, Imran Khan, is facing some tough financial and economic questions. 04 Aug GMT Business & Economy.
The Central Asia Regional Economic Cooperation (CAREC) Program aims to secure energy through the balanced development of the region's energy infrastructure, stronger integration of energy markets, and economic growth through energy trade.
Two of the three wars fought by India and Pakistan have been over Kashmir ( and ). It’s bad when a collective population of billion goes to war repeatedly over a sliver of land; it. Oct 12, Hammad assures support to marble industry: A delegation of the office-bearers and members of the All Pakistan Marble Association met Minister of State for Revenue Hammad Azhar here at FBR House and briefed him on the issues and problems facing the marble industry.
On completion of half a decade of the governance, the rulers have started a meticulous campaign in the media, inter alia, issuing special supplements in .
Middle East and Central Asia Regional Economic Outlook: Middle East and Central Asia, October October Economic prospects for the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions are diverging.