Pakistan’s Economic Growth Likely to Fall to Nine Year Low

Pakistan’s economic growth in the current fiscal year is likely to dip to a nine-year low, a report said.

The Economist Intelligence Unit (EIU) in its report predicted that the country GDP growth may slow down by 2.9 per cent during the current fiscal year.

The report said that the looming balance of payments crisis, cut in development expenses, monetary tightening and depreciation in the local currency would slow down domestic consumption and investment.

“We believe that the government’s efforts to address the country’s looming balance-of-payments crisis will have a dampening effect on economic expansion,” states the EIU, which is the research and analysis division of The Economist Group.

We expect real GDP growth to average around 2.9pc in 2018/19 – 2022/23. The IMF will prompt the government to cut planned development and social spending significantly, exerting a drag on GDP growth.

It said that due to the development and social funding cuts, growth in both private and government consumption is expected to slow down.

The introduction of tight government controls on imports would curb investment growth in 2018/19-2020/21, as it would become harder to import goods into the country. However, growth should pick up after 2022 as Pakistan’s IMF program would come to an end.

The report predicts that inflation would pick up due to the anticipated weakening of the local currency.

    • or you can say nawaz government ky kartooty samny ane lg pri hain. PTI government pchlipgovernmnet ka damage reverse krny men zror fail hoe hhai.Pr economy is halat men last 2 gov ki wja sy phnchi hai

        • Kuch kasoor is government ka bhi hai. inhy election sy phly apni policies etc bnani chahye thi taa ky damage km hota aur kuch positive steps lety. Pr lgta hai inhy election jitny ki umeed nhi thi is lye koi tyari nhi ki hoe thi. Ye government bhi pchli government ki trh ethanol sy energy production ko ignore kr rhi hai. Brazil ky ambassador ny bhi kha wo help krny ko tyar hai pr inhy murgiyon sy fursat mily to thora idhr bhi dehan dy lyn.

          • Unho Ne Policies Banaye : 100 Days Target Plan Banaya tha U-turn Q Liya ?
            Is Liye K Jab Mulk Hath Aya Tab Pata Chala Nawaz Walo Ne Kuch Chora Nahi Hai : Ghar Chalane K Liye Normal Faimly Ko Bhi 25000 Chahyeh Hota hai :
            Yaha Mulk Daily 5 Arab IMF Ko Intrest Pya Kar Raha hai
            2000 Arab Liye Gaye Dollar to Stable Rkhne K LIye
            Koi Info Nahi Dia tha Nawaz Walo Ne Jab Aye Audit Howi to Pta Chla K Ye KARNAMA Kiya Gaya hai
            Ab Imran K Pas Do He Option hai
            Ya to IMF Se / Kisi Se Loan Le Ya Awam Pe Tax Lagye Q?K Funds Chahyeh

  • All this is bakwas. These economists have always come up with wrong predictions. They don’t know the inside reality of Pakistan. Maybe this year growth will be lower but not lower than 4% for sure and then things will pace up from next year if the current policies are effectively implemented.

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