Pakistan Economic growth to hit a decade low, reveals international report
KARACHI - Pakistan’s economic growth in the current fiscal year is likely to hit a decade bottom point, it has been revealed.
Economy would likely to touch nine year low dipping to almost 2.9 percent as the looming balance payment of position, cut in development expenses, monetary tightening and depreciation in the local currency to slow down domestic consumption and investment, a report of Economic Intelligence Unit said.
“We believe that the government’s efforts to address the country’s looming balance-of-payments crisis will have a dampening effect on economic expansion”, the report said.
“We expect real GDP growth to average 2.9% a year in 2018/19 - 2022/23. The IMF will prompt the government to cut planned development and social spending significantly, exerting a drag on GDP growth.”
Against this background, we expect growth in both private and government consumption to slow. The introduction of tight government controls on imports will curb investment growth in 2018/19-2020/21, as it becomes harder to import goods into the country, although growth should pick up after 2022 as Pakistan’s IMF program comes to an end.