The World Bank has said that Pakistan economy is facing difficulties in the face of further delay in the loan programme agreement with the International Monetary Fund, reported 24NewsHD TV channel.

The World Bank released its Pakistan Development Report on Friday warning against any delays in reaching the IMF loan programme agreement. 

According to the report, Pakistan is facing pressure of external debt retirement. Owing to a surge in local demand, pressure on external payments is rising. 

The Bank has observed that the national and regional security threats are mounting. The Afghan situation is vitiating the security scenario. Taking in view all these things, the process of economic reforms could face derailment.

The Bank predicted that Pakistan’s GDP would remain 3.4% in 2022 and the budget deficit is expected to hover around 7.1%. In the election year, the budget deficit might hit 7.2%. 

According to the WB, inflation is rising due to hike in electricity prices. This year, inflation could reach 8.9 %.