Pakistan’s growth accelerated in FY16,driven by consumption while investment remained low. Exportscontinued to fall when soft global demand exacerbated theeffects of Pakistan’s long-term decline in competitiveness.After achieving macroeconomic stability, the governmentcontinued to deliver on its structural reform agenda inFY16, but much remains to be done if growth is tobestrengthened and sustained. The report begins with achapter on economic developments, withsections on growth,fiscal policy, the external sector and monetarydevelopments. The second chapter provides an outlook anddescribes upcoming challenges, including structural reformneeds and progress in social indicators. The final chapteridentifies several topical issues for detailed analysis,including sections on poverty, nutrition, Karachi urbanplanning and infrastructure, and the FY17 federal budget.
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