ISLAMABAD, May 10: The Fiscal Monetary Board (FMB) was informed on Wednesday that the economy was likely to grow at 6.5-7 per cent during the current fiscal year.

The board in its meeting, chaired by Prime Minister Shaukat Aziz, reviewed the recent development in the external sector and asked the concerned authorities to remain vigilant.

According to a press release the premier expressed his satisfaction over the economic situation in the country and the growing strength of the economy during the current fiscal year.

The board was informed that the declining trend in inflation was likely to continue as it was expected to be around 6.0 per cent on year-on-year basis. The average inflation for the year was likely to be slightly less than 8.0 per cent.

It was also informed that the trade deficit rose to $8.62 billion during the first nine months of the current fiscal as against $4.26 billion the same period last year.

The meeting was further informed that almost 75 per cent contribution to the rising trade deficit came from Petroleum group (41.5 per cent), Machinery group (21.5pc) and Iron, steel and scrap group (11.9pc). Consumer durable including road motor vehicles accounted for only 9.2 per cent to the rise in trade deficit.

The overall fiscal deficit during the period had remained at 3.0 per cent of the GDP.

The meeting was attended by commerce minister, adviser to the prime minister on finance, secretary general ministry of finance, governor State Bank of Pakistan, deputy chairman Planning Commission, principal secretary to the prime minister, secretary finance and economic adviser to the ministry of finance.