Pakistan's central bank forecasts upbeat 4pc growth

Published January 15, 2014
- File Photo
- File Photo

KARACHI: Pakistan's central bank on Wednesday estimated economic growth to surge up to four per cent for the current fiscal year, surpassing forecasts by international agencies.

The State Bank of Pakistan (SBP) announced its forecast in its belated annual report reviewing the fiscal year ended June 30, 2013.

“SBP projects GDP growth in the range of three to four per cent for FY14 which is higher than the IMF's growth forecast of 2.5 to three per cent,” the bank said.

The International Monetary Fund (IMF) approved a $6.7 billion loan package for Pakistan in September last year, subject to strict economic reforms, particularly in its troubled energy sector and tax system.

The central bank forecast that the three-year deal should bring stability to the domestic foreign exchange market during the current fiscal year.

In the last fiscal year Pakistan's economy grew at 3.6 per cent, the bank said, and inflation fell to single digits.

But it warned inflation could rise as high as 11 per cent in the current fiscal.

Cash-strapped Pakistan, plagued by a bloody home-grown Taliban insurgency, is battling to get its shaky economy back on track and solve a chronic energy crisis that cripples industry.

Economists say growth needs to be seven per cent to absorb the country's booming population.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Worsening hunger
Updated 08 Dec, 2022

Worsening hunger

THAT the dollar liquidity crunch has started hurting the import of essential items such as vegetables and raw...
Bannu beheading
Updated 08 Dec, 2022

Bannu beheading

The state must take up the cudgels and neutralise barbarism before it spreads.
Smog misery
08 Dec, 2022

Smog misery

IF 2022 has taught us anything, it is that generations of reckless disregard for Mother Nature has accrued very ...
Disquiet on the western front
Updated 07 Dec, 2022

Disquiet on the western front

IT is very difficult for Pakistan to be delinked from Afghanistan, because of reasons of geography and history.
Fuel from Russia
07 Dec, 2022

Fuel from Russia

THE apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a...
More women SHOs
07 Dec, 2022

More women SHOs

IT is encouraging to see more employment avenues opening up for women in Pakistan, with an increasing number of...