Signs of Recovery in Some Sectors The Economy
by According to IMF while the risk to Pakistan economy remained,the sign of recovery in some sectors of economy were very encouraging. State Bank of Pakistan anticipates GDP growth at 2.5 to 3.5 percent for the current financial year 2009-10.
Signs of gradual revival of the economy
By Mohammed Arifeen
The State Bank of Pakistan has projected GDP growth at the rate 2.5 to 3.5 percent for the current fiscal year 2009-10. It envisions the rate of inflation to be to be at the rate of 10 to 12 percent, half of previous year. The government has established terthe GDP growth rate growth rate for the current financial year at the rate of 3.3 percent while IMF has anticipated at 2 percent growth. According to IMF while the risks to Pakistan’s economy remained, the early signs of recovery in some sectors were encouraging.
In the financial year 2008-09 the budget deficit reduced by 2.4 percent to 5.2 percent of GDP. The tough macro- economic stabilization with the support of IMF was partially responsible for the reduction in the fiscal deficit.
Agriculture the main stay of the economy performed well in the fiscal year 2008-09 and attained a growth of 4.7 percent against the target of 3.5 percent principally due to the higher supply price. During this period both the major agricultural crops and the livestock sub sector displayed above target growth. Significant feature of the growth this year was the record harvest of the crops like wheat, rice and maize that collectively accounts for 59 percent of value addition by major crops and in this fiscal year this share achieved 63 percent. The government believes that this year bumper crop of wheat would surpass the wheat crop produced in the past year.
During 2008-09 Pakistan received $7. 811 billion as workers remittances. This facilitated the government to build a foreign exchange reserve of $14.75 billion the highest level registered since 2006-07. It is expected by the end of the year 2009 and 2010 the workers remittances would be up to $ 9 and 12 billion respectively. Trade deficit stood at $2.75 billion in the first quarter of the fiscal year 2009-10 as compared with $4.51 billion in the same period of the past year. Current account deficit dropped by 3.796 billion during the July- September of financial year 2009-10. It is projected that current account deficit would be around $2.25 billion in the current financial year.
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