Pakistan’s economy to remain strong: UN reportMarch 27th, 2008 - 11:03 pm ICT by admin
Islamabad, March 27 (Xinhua) Pakistan’s economy is expected to remain strong with a growth rate of 6.5 percent, despite many challenges, a UN report said 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 to 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, Pakistan’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 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 fuelled the inflation level in Pakistan
However it expressed concern over slowing down of the growth of 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.
Tags: agriculture sector, commodity prices, current account deficit, debt burden, debt cancellation, debt reduction strategy, escap, exports and imports, external debt, foreign direct investment, foreign investments, inflow, macroeconomic policies, manufacturing sector, public debt, social survey, sound policies, south asian countries, utility tariffs, xinhua