KARACHI – State Bank of Pakistan (SBP) has raised alarm bells for thePakistan economy.
SBP said in its Annual Report released on the State of Pakistan’s Economyfor the fiscal year 2017-18 on Friday that the inflation would surpass thetarget.
According to the report, Political and economic uncertainties have cast ashadow over the growth in recent months and the central bank said itsprojection of 6.2 percent growth for 2019 “appears ambitious” and pulled itdown to 4.7 from 5.2 percent.
The central bank said measures included in the supplementary budget by theincumbent government meant the country would miss its growth target of 6.2percent this fiscal year.
The report said, the growth momentum gained further strength as the economyachieved its 13-year highest real GDP growth of 5.8 percent in FY18. Thereport also highlights the GDP growth was also broad-based, as all thethree sectors–agriculture, industry and services–contributed positively tothis acceleration.
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The report stated that the acceleration in GDP growth was supported by hostof factors, including low cost of financing, improved energy supplies,favorable business sentiments, fiscal incentives through subsidies, andincreased access to credit.
At the same time, higher public spending and progress on CPEC-relatedprojects stimulated economic activities besides inducing firms to enhancetheir production capacities.
