Pakistan’s incomes could triple by 2050 with faster structural reforms, World Bank says

Pakistan’s incomes could reach three times their current level by 2050 if the country accelerates structural reforms, the World Bank Group said in its latest Pakistan Development Update. The report says annual growth of 6.2% to 6.9% could be achievable through reforms that bring policies and institutions closer to the average middle-income country. It also notes that real per capita growth remains around 1.6%.

The update records real GDP growth of 3.7% in FY26, up from 3.2% in FY25, and a primary fiscal surplus equal to 2.9% of GDP. Strong remittances helped rebuild foreign exchange reserves, while Pakistan returned to international debt markets with a US$3 billion Eurobond. The World Bank says future progress requires measures to improve the business environment, tax system and access to finance, alongside reducing the state’s economic role. It also points to power tariff adjustments, trade liberalisation and Pakistan International Airlines’ privatisation as steps already taken.