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

Azerbaijan's Gilan Textile Park raises exports by 40%

Apparel/Garments | On 18th Aug 2018

Azerbaijan's Gilan Textile Park raises exports by 40%

Azerbaijan's Gilan Textile Park has raised its exports by 40 per cent ...

CPD studies living cost of Bangladesh RMG workers

Apparel/Garments | On 18th Aug 2018

CPD studies living cost of Bangladesh RMG workers

The living cost of readymade garment (RMG) workers in Bangladesh...

Brazilian cotton price index returns to April 2018 level

Textiles | On 18th Aug 2018

Brazilian cotton price index returns to April 2018 level

Cotton prices dropped in Brazil in the first fortnight of August as...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Hardik Sanghvi

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

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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


August 2018

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

news category


Related Categories:

Advanced Search