Pakistan is again in the news for all the good reasons. Gross Domestic Product (GDP) growth of the country in the current fiscal year is expected to hike by 5.2%, highest in the past nine years. The projection was made by the World Bank recently in its report titled ‘Pakistan Development Update’.
The growth rate is expected to climb 5.5% during FY18 and 5.8% in FY19, as per the report released by the World Bank.
BizUpdates recently reported that Finance Minister, Ishaq Dar, said that Pakistan is targeting to generate 6% growth in Gross Domestic Product (GDP). Dar in an interview with Japanese Nikkei Asian Review said that they are looking out at their international partners to invest which will help out in developing the infrastructure along with promoting small businesses.
Earlier, State Bank of Pakistan (SBP) also made same prediction about GDP growth by Pakistan. In FY16, Pakistan recorded the highest GDP growth in the past eight years, as reported by the World Bank.
The growth in GDP will constantly benefit from the investor confidence and growing consumer during the first half of the current fiscal year, following the successful efforts to restore macroeconomic stability during the past 4 years.
The prediction made by World Bank is positive, provided that Pakistan can avoid some of the potential hazards such as corruption and market manipulators. GDP growth is expected to continue its hike, reaching 5.8% in FY19. The growth is primarily driven by private and public consumption, and let’s not forget the moderate increase in the investment.
Despite the fact that remittances have been declined, the country is making progress on the back of cheap oil prices. The sudden increase in oil prices internationally would worsen the trade deficit and present fiscal risks as a result of hike in energy subsidies.
In any case, Pakistan’s economy is improving rapidly and the country is emerging as one of the top performers in South Asia after Bangladesh and India.