Pakistan could triple its average income by 2050 if the government speeds up economic reforms, according to a new report by the World Bank released on October 22, 2026.
The report, titled Pakistan Development Update: Attaining Escape Velocity, says the country could achieve annual economic growth of 6.2% to 6.9% if it improves its policies and institutions to match the standards of an average middle-income country.
Pakistan’s economy grew by 3.7% in the fiscal year 2025-26, compared with 3.2% in the previous year. However, growth in income per person remains slow at around 1.6%.
The World Bank says Pakistan needs to improve its business environment, reform its tax system, reduce the government’s role in the economy and make financing easier for businesses.
The report also highlights the need for more private investment to create jobs and raise living standards. If these reforms continue, Pakistan could reach Vietnam’s current income level by 2050.
