ISLAMABAD: Pakistan could triple its income levels by 2050 through faster structural reforms, according to the World Bank’s latest Pakistan Development Update, released on October 22.
The report, titled Attaining Escape Velocity, estimates that improvements in economic policies and institutions could support sustained annual growth of 6.2% to 6.9%, creating opportunities for higher incomes, private investment and employment.
The World Bank said Pakistan’s economy grew by 3.7% in FY2026, compared with 3.2% in the previous fiscal year. Strong remittances helped rebuild foreign exchange reserves, while higher revenues and spending controls supported a primary fiscal surplus of 2.9% of GDP.
Pakistan also returned to international debt markets through a $3 billion Eurobond issuance, following sovereign credit rating upgrades by S&P and Moody’s.
Despite these improvements, average real income growth per person remains around 1.6%, limiting improvements in living standards.
The World Bank identified reforms in taxation, business regulation, access to finance and state-owned enterprises as priorities for faster growth. It also highlighted progress in reducing energy subsidies and implementing trade liberalisation measures.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said the country had made progress in restoring economic stability, while faster growth was needed to raise incomes.