Pakistan, a country with a population of 165 million, experienced impressive economic growth in the first half of the decade. From the beginning of 2000 to the first half of 2007, the economy grew at an average rate of about 7.3 percent annually, with moderate inflation. This was in stark contrast to the slow progress made during the 1990s, when economic slowdown led to sharp increases in poverty and stagnation in social indicators. This turnaround, in line with robust growth trends in the region, resulted partly from the wide-ranging reform program articulated in Pakistan’s Poverty Reduction Strategy Paper.

More recently, however, major external shocks, political turmoil and severe security challenges, have caused slower economic growth, renewed inflation and unsustainable external balances. The International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, has had to modify its support for Pakistan in these changing circumstances.

Download 11-page brief:
Consolidating Gains in the Face of New Challenges - July 2009 (PDF)

Meet the survivors of the October 2005 earthquake and view panorama of the town of Bagh:
IDA in Pakistan: earthquake recovery and reconstruction