Some good news, which is greatly appreciated. Expected economic growth is 4.5% for the year, with 3.8% being a more conservative estimate. This is the news from Businessweek, and international business newspaper.
Pakistan’s economy may expand 4.5 percent next fiscal year, the fastest pace in three years, as manufacturing output increases and farmers grow more cotton and wheat, according to Planning Commission estimates.
Prime Minister Yousuf Raza Gilani’s government needs faster expansion to rebuild an economy hurt by inflation, terrorism and falling foreign investment. The growth projection comes as the government considers a second loan from the International Monetary Fund to help bridge the budget deficit.
“The growth target seems overstated,” said Sarah Hadi, an economist at Elixir Securities Ltd. in Karachi. “It is more likely to be around 3.8 percent but a lot depends on agriculture.”
The top items that threaten the economy continue to be attacks by Taliban and political opposition on the government, which makes investors hesitant to build business in Pakistan.