Pakistan’s GDP growth expected at 4.9%: Moody’s

Ratings agency says CPEC-related activities will boost economy


APP February 23, 2017
Report said the banking strength of the country would result in further progress in next fiscal year 2017-18 PHOTO: REUTERS

ISLAMABAD: The China-Pakistan Economic Corridor (CPEC) will boost economic activities in Pakistan and the economic growth is expected to be 4.9% during the current year, says a report issued by international ratings agency Moody's Corporation.

Pakistan’s annual economic progress has not touched 5% in more than a decade, but chances of achieving this reading are high this year owing to CPEC, a news channel reported.

Fitch affirms Pakistan at 'B'; outlook deemed stable

According to Moody’s, CPEC will boost economic activities, increase industrial production and push development work.

The report also praised the banking system of Pakistan, saying that banking strength of the country would result in further progress in next fiscal year 2017-18.

However, it cautioned that poor security situation and political instability may harm the economic progress.

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COMMENTS (4)

Manu | 4 years ago | Reply Yes there will be positive growth for Pakistan.But thinking of sustainable growth. According to SBP Pakistan growth was supposed to grow above 5% starting 2011 itself.However don't get fooled about the growth percentage. Just like dollar to currency comparison the growth rate only matters when there is stability not fluctuations.When the debt repayments starts kicking in this growth rate might not be relevant because servicing debt might bring down GDP significantly.Currently IMG calculates estimated growth based on its own debt servicing,The lending done by China is not taken into picture because it's in between nations.As far as we know Chinese they won't let Pakistan go off the hook without paying their debts.
Shahrukh | 4 years ago | Reply To imply only China alone will benefit from CPEC is grossly incorrect. Yes they will benefit but so to will Pak. What the central government needs to ensure is that it is an symbiotic relationship whereby both parties "win". The aim is to have a multiplier effect in the economy. In theory it may sound as pragmatic, however, in practice it requires good central institutions, structural reform and maintenance, and adapting when needs be, areas where the central government may not be up to the full task.
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