Home / Knowledge / News / Textiles / Pakistan's economy set to surpass last year's growth: SBP
Pakistan's economy set to surpass last year's growth: SBP
10
Apr '18
Pakistan
With continued strong performances by agriculture and services sectors, and a four-year record high large-scale manufacturing growth during the first half of FY18, Pakistan’s economy is set to surpass last year’s growth rate, the State Bank of Pakistan (SBP) has said in its second quarterly report for FY18 on the ‘State of Pakistan’s Economy’.

Inflation and the fiscal deficit were both contained during July-December 2017, whereas revenue growth has outpaced last year’s level, the central bank report said.

The report pointed out that increased consumer spending has led to a strong growth in durables such as automobile and electronics, while the ongoing infrastructure and construction activities have stimulated the allied sectors of cement and steel. “Encouragingly, various industrial players across different sectors are investing in capacity expansions and product diversification. The private sector also continued its borrowing from scheduled banks for long-term projects. On the agriculture front, while all major kharif crops performed well, wheat production came under pressure due to lower area under cultivation,” SBP said.

Meanwhile, core inflation remained higher on average in H1 FY18 due to continuously rising education and healthcare costs. However, its pace has stabilised in recent months.

The report highlighted that the growth in revenue collection outpaced the increase in expenditures in H1 FY18, which led to a broad-based improvement in fiscal indicators. The overall fiscal deficit was contained at 2.2 per cent of GDP, down from last year’s 2.5 per cent. Revenue growth gained impetus from greater real economic activity, rising imports (both quantum and prices), and higher sales volumes of petroleum, oil and lubricants (POL) products. Non-tax revenues also rose over last year, led by higher SBP profit and a surge in receipts from property and enterprise, civil administration and other miscellaneous receipts.

On a cautionary note, the report added that while the real sector of the economy was performing well, the external account presented challenges. The 8-month-long consecutive export growth and a rebound in workers’ remittances were welcome developments, but they were overshadowed by rising imports. Resultantly, the current account deficit increased to $7.4 billion in H1 FY18, from $4.7 billion last year. Even though financial inflows were higher this year, they were insufficient to offset the rise in the current account deficit. Consequently, SBP’s liquid reserves came under pressure, and the PKR/USD parity depreciated by 5.0 per cent in H1 FY18.

Pakistan’s economy has reached a familiar juncture, where Balance of Payments challenges warrant concerted and timely measures to preserve the macroeconomic stability and growth momentum. If the external challenges are addressed, other fundamentals are strong enough to put it on a sustainably high growth path, the report concluded. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

C Dhandayuthapani

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Urmil Arya

Sushila International, a well established textile organisation established ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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