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

Published: February 23, 2017

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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Reader Comments (4)

  • Lumdheeng
    Feb 23, 2017 - 6:10PM

    Question is how Pakistan is going to make economic progress,its China as per prediction, will make best use of Gawadar port, saving time and money with shipments from middle east, African nations and South American countries. Pakistan already had Karachi port, not far from Gawadar port, what is the difference. Recommend

  • Solat
    Feb 23, 2017 - 7:12PM

    @Lumdheeng You don’t need to worry on this. Try spending your time on some productive work.Recommend

  • Shahrukh
    Feb 23, 2017 - 7:28PM

    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.Recommend

  • Manu
    Feb 24, 2017 - 2:36AM

    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.Recommend

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