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Pakistan's economy faces renewed deficit pressures, with a projected $0.6B current account gap and inflation rising due to external debt and weak reforms.
Pakistan's economy is slipping back into deficit, with the Lahore School of Economics projecting 2.4% GDP growth for FY 2025-26 and a current account deficit reaching $0.6 billion in the first quarter—reversing last year’s $2 billion surplus.
The report cites reliance on external financing, poor import management, and structural weaknesses as key causes, warning that inflation could hit 7.1% due to high energy costs and exchange rate instability.
Despite modest gains in agriculture and manufacturing, growth is unlikely to exceed 2.9%, falling short of targets.
The LSE urges urgent reforms, including liberalizing investment goods imports and restricting luxury imports, to stabilize the economy and restore confidence.
La economía de Pakistán enfrenta nuevas presiones de déficit, con una brecha de cuenta corriente proyectada de $0.6B y una inflación en aumento debido a la deuda externa y las débiles reformas.