According to the State Bank of Pakistan, the GDP growth rate in the current financial year is likely to be reduced than the 7 percent target set.
Pakistan can ill afford to disrupt its macroeconomic constancy, which has been the lynchpin in restoring domestic and foreign investor confidence due to fast growing globalization and increasing regional competition according to a report by the State Bank of Pakistan.
GDP growth will fall in the range of 6.3 to 6.8 percent as estimated by the Central Bank.
The comparative decelerate to the goal owes chiefly due to limitation in the commodity producing sectors of the economy, the impact of which will be partially offset by an anticipated higher-target performance by the service-sector, says the report.
The descending tendency is disturbing and inflation remains comparatively high due to the inflationary pressures showing a welcome decline.
Due to marginal development in the accessibility of water and agriculture credit, wheat yields might surpass the record of 2586kg/hectare along with minor crops which might also do better than targeted during Rabi season, but due to deficit in two major Kharif crops - cotton and sugarcane the overall increase of the crops in sub-sector may remain below target.
In large-scale sector, only automobile industry posted encouraging growth of 28.2 percent whereas the largest industrial group, textiles, grew only by 7.7 percent, and the chemical and fertilizer recorded only 4.4 and16.4 percent respectively.
Because of the tight monetary policy there was a sturdy increase in tax revenues, but the government's fiscal position witnessed moderate deterioration.
Due to augmented foreign private investment by FDI, including a substantial $255 million received as privatization earnings, financial condition improved substantially.
marketing@alchempro.com
