Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 14 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
WB projects Pakistan’s GDP growth at 5.5 per cent
November 11, 2017
 Print    Send to Friend

KARACHI: The World Bank projects that Pakistan’s GDP growth rate will be 5.5 per cent and 5.8 per cent for 2017-18 and 2018-19, respectively, “despite an increase in macroeconomic imbalances” in the last financial year.

In its Pakistan Development Update, a biannual publication shedding light on the state of the economy and its future prospects, the global lender said the economic growth rate projection assumes that oil prices would increase slightly and that “political and security risks will be managed”.

Speaking at the official launch of the report on Friday, llango Patchamuthu, the World Bank’s country director, said: “Pakistan will need to continue with economic reforms and pursue policies that make the country compete better in global markets.”

The bank believes that aggregate consumption, one of the key determinants of GDP, will grow because of a marginal recovery in remittances and higher government expenditure due to the election cycle.

It expects that the services sector will grow 5.8% in 2017-18 against 6% in the preceding year due to healthy contribution from the sub-sectors of wholesale and retail trade and transport, storage and communications.

The industrial sector is likely to post a growth of 7% against 5% in 2016-17, thanks to improved power supplies and the China-Pakistan Economic Corridor (CPEC). The bank estimates that the agriculture sector will expand 2.9% in 2017-18 against 3.5% a year ago.

Pakistan’s current account balance is already under pressure and the World Bank believes the imbalance can become unsustainable “in the absence of timely corrective policy measures”.

It projects that the current account deficit will be 4pc of GDP in 2017-18 against 4.1% in the last fiscal year.

The current account deficit jumped 112% year-on-year in the first quarter of the current fiscal year to $3.5 billion.

Although the bank anticipates a rise in foreign direct investment in view of the CPEC, it notes that capital and financial flows will not fully finance the current account deficit, resulting in a drawdown of foreign exchange reserves.

Internews

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Pakistan raises gas prices to trim subsidies amid budget woes
ISLAMABAD: Pakistan on Monday increased natural gas prices by up to 20 per cent, Petroleum Minister Chaudhry Mohammad Sarwar said, in effect slashing consumer subsidies t..
All eyes on Pakistan Property Show in Dubai
DUABI: Pakistan’s top property portal Zameen.com is set to take the country’s real estate market international again with the latest edition of its highly successful Paki..
Pakistan’s central bank tightens currency movement
ISLAMABAD: The State Bank of Pakistan (SBP) has taken stringent measures to tighten currency movement within the country amid depreciation of the national currency follow..
China lends $1b to Pakistan to boost FX reserves
ISLAMABAD: China has lent Pakistan $1 billion to boost the South Asian country’s plummeting foreign currency reserves, two sources in Pakistan’s finance ministry told Reu..
Tax amnesty scheme to stimulate foreign inflows
ISLAMABAD: The tax amnesty scheme, unveiled by Prime Minister Shahid Khakan Abbasi on Thursday, is expected to augur well with the stocks market, which has been rallying ..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright