Home / Knowledge / News / Announcement / 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

Pic: Better Work

Apparel/Garments | On 24th Oct 2020

Positive change in Cambodian garment sector due to ILO BWP

Cambodian factories receiving the full package of services by Better...

Pic: Awaj Foundation

Apparel/Garments | On 24th Oct 2020

COVID erodes income of a third of Bangla apparel workers

Nearly a third of Bangladeshi garment workers suffered loss of...

Pic: Ralph Lauren

Fashion | On 24th Oct 2020

Ralph Lauren, Parity.org convene group to close gender gap

Ralph Lauren, which designs and markets premium lifestyle products,...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Laxmikant Rathi,

Laxmikant Rathi

With more than 60 years of experience in the textile industry, Ideal...

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

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


October 2020

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


Advanced Search