Global Economy
Pakistan economy may expand more than 7 pc
BLOOMBERG
Posted online: Wednesday, March 23, 2005 at 1514 hours IST
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ISLAMABAD, MARCH 23: Pakistan’s economy may expand more than 7 per cent this fiscal year to June 30, on higher farm production and industrial output, the government said, matching an earlier forecast.
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Pakistan’s economic policies “have not only made the economy healthier, but also set the stage for taking the economy at a 7 per cent to 8 per cent growth path on a sustained basis,” said a report posted to the finance ministry, carrying a six-month review of Pakistan’s economy.
Large-scale manufacturing, or factories that employ more than 100 people, grew at 16.1 per cent in the July-Dec. Period, from 15.4 per cent a year earlier, it said.
Pakistan needs economic growth to reduce poverty in a nation of more than 150 million people where half live on less than 2 dollar a day. The economy, which grew at an average pace of 4 per cent in 1990s, expanded 6.4 per cent last year.
On March 3, Pakistan raised its economic growth forecast for this year to more than 7 per cent from 6.6 per cent. State Bank of Pakistan, the central bank, forecast on March 21 Pakistan’s 95 billion dollar gross domestic product may expand as much as 7.8 per cent this year.
Farm production may grow 4 per cent this fiscal year on higher cotton production, which will probably be a record 2.4 million tons from 1.7 million tons in 2004.
Inflation, as measured by the consumer prices index, may accelerate at an average annual pace of 7 per cent, which is more than the original target of 5 per cent, report said. The central bank estimated annual consumer prices may rise as much as 8.8 per cent.
