World Bank warns Pakistan to take urgent action to avert impending economic crisisMarch 28th, 2008 - 1:10 pm ICT by admin
Islamabad, Mar 28 (ANI): The World Bank has warned Pakistan that it might miss key economic targets for the budget and current account deficits, as well as for foreign exchange reserves, and urged its new government to take urgent action to prevent the countrys strong economic expansion from tipping into crisis.
In a statement issued after his three-day visit to Pakistan, Banks vice-president Praful Patel said that the country needed to make painful adjustments to higher global prices for oil, commodities and foodstuffs or risk a slowdown.
During his Pakistan visit, Patel talked with leaders of the new government on the prevailing economic conditions in the country.
There is not yet a crisis, but the economic picture for Pakistan is not good. There is a good economic foundation, but the growth can only continue if Pakistan adjusts to the new global reality, the Daily Times quoted Patel as saying.
If action is not taken, the economy will start to falter, but with the right policies and strong support from multilateral and bilateral partners, we believe the high growth and poverty reduction path can be maintained in Pakistan, he added.
Tags: account deficits, commodities, current account, economic crisis, economic expansion, economic foundation, economic targets, foodstuffs, foreign exchange reserves, global prices, global reality, painful adjustments, pakistan visit, poverty reduction, praful patel, prevailing economic conditions, slowdown, urgent action, vice president, world bank