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