SBP data for the early months of the financial year began in July, 2013 said GDP grew by 5.0 percent, compared with only 2.9 percent in the first quarter of the last fiscal year. DESIGN: JAHANZAIB HAQUE
Pakistan recorded five per cent growth in the first quarter of the current fiscal year, the central bank said Friday, beating its target and almost doubling the figure for the same period last year.
The State Bank of Pakistan data for the early months of the financial year began in July, 2013 said GDP grew by 5.0 per cent, compared with only 2.9 per cent in the first quarter of the last fiscal year.
Nuclear-armed Pakistan, plagued by insurgency and chronic power shortages, has struggled to energise its economy in recent years.
Growth has bumped along well below the level experts say is needed to absorb new entrants to the workforce from Pakistan's growing, youthful population.
"Since the macroeconomic indicators were favourable at the start of the year, the increase in real GDP growth in fiscal year 2014 was discernible," the bank said.
Pakistan's economists had set a growth target for the current financial year of 4.4 per cent, and the central bank in earlier reports had forecast growth of four per cent.
The upbeat first quarter performance came on the back of good performances by the industrial and services sectors, the report said.
However the bank warned that inflation swelled to 8.1 per cent in the first quarter compared with 5.6 per cent in the corresponding period last year.
The IMF approved a $6.7 billion bailout loan package for Pakistan in September last year to help the country achieve economic reforms, particularly in its troubled energy sector.
The fund also observed that Pakistan's economy was picking up.
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Currency appreciation and so called economic growth is of no value unless we don't get to buy petrol for 65 rupees per liter and Roti for 3 rupees. Its Loan packages that are increasing foreign reserves for time being thus currency appreciation. For long run all this will be just an addition to our misery as money borrowed today will have to be paid back with interest tomorrow.
@Salman: I think you are the one who need an economic class my friend. GDP growth isn’t a positive factor when it comes with high rate of inflation. Increasing GDP at this point of stage means inviting more inflation in the economy where prices are already inflated. Ever heard of a "real gdp" or price adjusted GDP? Are you implying that Pakistan should not post any GDP growth just because prices are high? Lastly, you would also have to consider what kind of inflation prevails in Pakistan and to what extent inflation in Pakistan is a monetary phenomenon. But seriously your argument was very interesting indeed....
@Xnain: I think you are the one who need an economic class my friend. GDP growth isn't a positive factor when it comes with high rate of inflation. Increasing GDP at this point of stage means inviting more inflation in the economy where prices are already inflated. It's not long before the government would end up printing more currency notes and thus increasing the price level.
Whose numbers are these? I don't believe this one bit.
@Unknown: No one disputes that things are getting better in Pakistan. Regardless, we need to give credit where it is due. The new government has done agood job so far.
What about the Rs. 8000 billion loans zardari party government burdened this country with? where did that money go? Why nawaz government not try to find out?
LOL @ All the PMLN voters saying they voted for PTI and are disappointed. Grow up guys. Take a trip down to lahore once in a while and check out the markets. Then come and tell me whether " 5% Growth" translates to "better economic conditions for the common man" ?
Even though this story is heartbreaking for some people, things are looking good. I personally look at film industry (and media) of a country to see if it is growing or not. Film industry is growing like it was in 1995 to 1998 (films like Jeeva etc). . As far corruption, even UK specialists/advisors are asking China to follow chief minister of Punjab example (I wish ET could give coverage to that article in a separate news). This was published in biggest newspaper of China: ...................................To fight corruption, Beijing should look to Pakistan Dan Hough suggests empowering citizens to report bribery, as Lahore has
http://www.scmp.com/comment/insight-opinion/article/1430177/fight-corruption-beijing-should-look-pakistan
in PML N last govt they give wrong calculation to IMF and we pay the fine... thrz nthng good happen in last 8 month hw we grew by 5%.. oh got it now.. fire State Bank governor and make report according to ur will... well done DAR
cant beleive this because i dont know what pmln have done in the past eight months to double the growth rate in order to double the growth rate it take time no one can double the growth rate in just few months .for industries the loadsheding (gas n electricity) is gone from bad to worst the foreign investment is on the decline even furthur there will be a little improvement in export of textile due to gsp+ but it have doing nothing with current government i think two most important thing for economy is 1.export 2. foreign investment and i dont think any dramatical change in both export n foreign investment due to loadsheding n law n order note:can someone explain on which basis the growth of the country doubled in few months
Congratulations,best wishes for the future to all Pakistanis !!!!!!
No mega scandal of corruption during present goverment. Its very good. Bravo Nawaz Sharif.
I am shocked to read comments against present federal government. Opponents should provide support to the government for the sake of Pakistan. All my prayers for Pakistan and Nawaz Sharif. Present government is working with full dedication.
Nawaz Sharif and his team is working hard. I appreciate them. Insha Allah every thing will be ok within few years. Allah bless Pakistan.
although, i am PTI voter, but i appreciate what PMLN is doing. Media is continuing their negative work again! But, we are happy with you PMLN.