ADB reveals the economic challenges and prospects for Pakistan
*ISLAMABAD: *The robust economic growth of 5.8 per cent in Pakistan, the highest in 13 years, is credited to an uptick in industry, better agricultural crops and an expanding services sector.
However, with the new government considering policy options to implement its economic and social agenda, twin deficits widened by a rising import bill while higher spending continues to pose a challenge, according to the Asian Development Outlook (ADO) Update 2018.
The update of the Asian Development Bank’s (ADB) flagship annual economic publication noted that agriculture grew to 3.8 per cent, nearly double that of a year earlier, boosted by favourable weather and a marked increase in food crops, cotton, and livestock. Industry growth climbed to 5.8 per cent from 5.4 per cent, underpinned by improvements in wholesale and retail businesses, faster expansion in manufacturing and mining, and sharp growth of over 9 per cent in construction.
On the demand side, private consumption in FY2018 slowed slightly from a year earlier to 6.3 per cent but, with an 81.1 per cent share of gross domestic product (GDP), remained the largest contributor to growth.