Pakistan will see its annual economic growth rate surge to 7 percent in two years as it reaps the benefits from China and others investing more than $40 billion in infrastructure, according to the Finance Ministry’s top bureaucrat.
Prime Minister Nawaz Sharif’s government is showing investors he’s serious about implementing economic reforms by heading toward completion of an International Monetary Fund loan program, Finance Secretary Waqar Masood Khan said in an interview in Islamabad on Wednesday.
“We still face challenges in achieving a higher growth,” Khan said. “Compared to our potential, our growth rate is significantly low.”
Sharif is targeting growth of 5 percent for the current fiscal year ending in June, an eight-year high, as he works with the IMF to turn around an economy hindered by energy shortages and terrorism. China’s plans to invest $46 billion in an economic corridor are fueling optimism that growth is set to reach new heights.