Pakistan's economy continues to stabilize and is expected to grow by two point seven percent in the current fiscal year as compared to two point five percent in the previous year.

According to World Bank's latest Pakistan Development Update, the real GDP growth will be supported by recovering private consumption and investment driven by subdued inflation, lower interest rates, and recovering business confidence.

The World Bank report says Pakistan's economy is stabilizing with easing inflation, improving financial conditions, and current account and primary fiscal surpluses.

This edition of the Pakistan Development Update also underscores the need for structural reforms to unlock opportunities of private capital mobilization for improving Pakistan's digital infrastructure and enabling environment for the digital economy.

The Pakistan Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyzes policy challenges countries face.

Meanwhile, the Country Director of the World Bank for Pakistan Najy Benhassine said that Pakistan's key challenge is to transform recent gains from stabilization into economic growth that is sustainable and adequate for poverty reduction.