World Bank: Pakistan Incomes Could Triple by 2050 With Faster Reforms

The World Bank says Pakistan's average incomes could triple by 2050 if the country speeds up structural reforms, in a new Pakistan Development Update titled "Attaining Escape Velocity" released in Islamabad on October 22.

The report says Pakistan has stabilized its economy after years of crisis: real GDP growth reached 3.7 percent in fiscal year 2026, up from 3.2 percent in FY25, and the country posted a record primary fiscal surplus of 2.9 percent of GDP. Strong remittances helped rebuild foreign exchange reserves, rating agencies S&P and Moody's upgraded Pakistan, and the country returned to international debt markets with a $3 billion Eurobond.

But per capita income growth is stuck at just 1.6 percent, World Bank Country Director Bolormaa Amgaabazar said, warning that reforms are "urgently needed." Ambitious reforms could lift growth to 6.2–6.9 percent a year — enough for Pakistan to reach Vietnam's current income level by 2050.

The report points to progress already made: energy subsidies were cut from 1.1 to 0.8 percent of GDP, trade barriers are being lowered under the National Tariff Policy, and Pakistan International Airlines has been privatized. Next steps, it says, include a better business environment, tax reform, a smaller state footprint in the economy, and wider access to finance.

Source: Pakistan News — read more