The Report says that the impact of oil price decline was felt directly on CPI inflation, which was pulled down to only 2.5 per cent during the period. Initial estimates suggest that timely rains and better input availability have reportedly improved per - acre harvest, increasing hopes for a bumper crop for the third straight year.
The encouraging aspect, the Report noted, is that the higher development spending did not impede the government's fiscal consolidation efforts, as the overall budget deficit dropped appreciably to 1.7 per cent of GDP in H1 - FY16 from 2.4 per cent of GDP in H1 - FY15.
The Report also stated that these official FX inflows helped in financing the current account deficit during the period, and compensated for insufficient private investment inflows. The overall current account deficit reached $1.4 billion during H1 - FY16, significantly lower than the $2.5 billion deficit recorded in the same period last year.
Pakistan's public external debt servicing obligations are not more than $6 billion per annum until 2020. This amount appears manageable, especially keeping in view the existing level of country's FX reserves and expected continuation of FX inflows.
To make Pakistan's growth more sustainable, the Report suggests that the cost of production and doing business has to be brought down; energy supplies must be smoothened further especially via investing in more broad-based and sustainable sources of generation and export-friendly industrial policies should be laid out. (MCJ)
State Bank of Pakistan
Textiles | On 15th Aug 2018
A group of US retailing, e-commerce and logistics firms recently...
Apparel/Garments | On 15th Aug 2018
IndustriALL Global Union recently signed a global framework agreement ...
Textiles | On 15th Aug 2018
Indian commerce and industry minister Suresh Prabhu has asked for...
Vidhyaa Shankar. S
A Ganapathi Chettiar
'The usage of knits is getting into the boundaries of woven fabrics'
‘Indian footwear market is nascent and largely a trend follower’
Textile & apparel bodies
The mid-term review of FTP is progressive, growth oriented
Aizome, Asia's first Fairtrade denim brand, is all set to launch next...
Describing itself as the best body shape and garment fit company in the...
Reckon Industries is into manufacturing of textile process house machines, ...
INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...
Mr Hartmann Huth
Trevira GmbH is an innovative European manufacturer of high-value branded...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
Coming from a family that ran a business of jute and linen mills since...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
She has carved a niche for herself as the national brand of Turkey. Her...