Home / Knowledge / News / Textiles / Pak economy maintains growth momentum
Pak economy maintains growth momentum
04
Jul '16
Pakistan's economy has maintained its growth momentum during FY16, despite suffering heavy losses in the agriculture sector, according to the State Bank of Pakistan's Third Quarterly Report for FY16 on the state of Pakistan's Economy.

The report, released on July 1, highlighted the acceleration in industrial and services sectors' growth on the back of better energy supply and improvement in security situation in the country.

Other key macro-economic indicators also improved during FY16. Average CPI inflation was almost half the level seen last year. In the meanwhile, inflationary expectations also subdued. This ease in inflation primarily came on the back of continued low commodity prices in the global markets (and its swift pass through to domestic consumers, particularly for POL products), comfortable supplies of key food items, and stable exchange rate, the report said.

The SBP report further said that another positive factor for the economy was the surplus in the external account during first nine months of the year, which was largely led by contained oil payments, a modest rise in worker remittances and foreign currency loans.

Hence, SBP's reserves (aggregate reserves including banks) reached $16.1 billion by end-March 2016. This amount was sufficient to finance four months of the country's import bill, and more than twice the short-term payments, the report said.

Fiscal indicators also witnessed broad improvement. The budget deficit reduced to 3.4 per cent of GDP in Jul-Mar FY16, from 3.8 per cent in the same period last year. More importantly, the country recorded a primary surplus during this period. Higher revenues, contained expenses and larger surplus from provinces led to this improvement in the fiscal account.

According to the report, besides subdued commodity prices (particularly oil) in the global market, the policy support also played a key role in improving macro fundamentals. An expansionary monetary policy for the last one and a half year, development focus of fiscal spending (particularly on infrastructure projects which also encouraged construction and related activities), better energy management, and CPEC related initiatives, are case in point.

The report also identified low investment rate, continued weakness in exports, slowdown in remittances, and narrow tax base despite stop-gap measures by the government to increase tax collection as some of the key challenges for the economy, which needs to be tackled through structural reforms so that the recent improvement in macro fundamentals can be sustained. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Top executives
Textile & apparel bodies

The decision is transformational

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search