I am sure the new government will continue to build of the massive and unpecedented economic achivements of the last 8 years.
UN report: Pakistan’s economy to remain strong
ISLAMABAD, March 27 (Xinhua) – Pakistan’s economy is expected to remain strong growth of 6.5 percent supported by all sectors during the current year despite many challenges, according to a United Nations report released Thursday. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its economic and social survey appreciated Pakistan’s macroeconomic policies of the last six years, saying that these helped increase the inflow of domestic and foreign investments and sustain a strong economic growth.
The survey said that sound policies have transformed Pakistan’s consumption-led growth impetus to the one in which investment-led growth can assume a more important role. According to the survey, Paksitan’s agriculture sector grew by 5 percent last year while the manufacturing sector’s growth continued at 8.4 percent. The inflow of foreign direct investment amounted to 8.4 billion U.S. dollars last year, which boosted performance of the economy. A credible debt reduction strategy and fast economic growth drastically cut the public debt burden, besides successful reduction of its external debt burden, through rescheduling, debt cancellation and prepayment of expensive debt, the survey said.
Referring to the higher inflation level in Pakistan, the survey said global increases in some commodity prices, higher utility tariffs and some other factors fueled the inflation level in Pakistan. However, the government has made efforts to stem price rises through extension of public sector utility store network and extending subsidies on essential edibles. The survey also highlighted the government’s expansionary fiscal stance to promote investment for growth and increase pro-poor spending. However it expressed concern over sharp slowing in the growth of Pakistan’s exports and imports during the last year. The ESCAP survey predicted that like many other South Asian countries, the current account deficit is to remain an issue for Pakistan due to higher oil prices and the impact on the garment and textiles trade. The report suggested export diversification besides reducing the risk of depending too much on a single sector to meet the challenge.
Re: UN report: Pakistan's economy to remain strong - 6.5% GDP growth
^ We all hope so. As the reports indicate the growth has had two important (but not the only) factors behind it: consumption, remittances. Remittance will probably continue and may even grow but how far can consumption-led growth go? Newer generation is probably more into spending the money while older generations "saved" the money. Also new loans-made-easy money is also playing some role.
My question is: How has export been doing all this time (in relation with imports)?
Re: UN report: Pakistan's economy to remain strong - 6.5% GDP growth
its good thing, cause musharraf has build the strong foundations for the economy and it will not go down now.
Yup, as the report states:-
Paksitan's agriculture sector grew by 5 percent last year while the manufacturing sector's growth continued at 8.4 percent. The inflow of foreign direct investment amounted to 8.4 billion U.S. dollars last year, which boosted performance of the economy.
If this level of domestic growth across the main economic sectors and foreign investment is continued, then Pakistan will continue to flourish. The new govt needs to pick able economic people to carry on the fantastic foundations that have been built over the last 8.5 years.
Re: UN report: Pakistan's economy to remain strong - 6.5% GDP growth
Pakistan's economy has always been "just there" just at the threshold. However our leftist policies have not let it grow to the point where we can become a "developed" country.
For balance of payments to import oil and other necessities, we are dependent on remittances and the money from USA.
The day either of these money supplies slow down or stop, our economy goes south as well.