Pakistan’s success in reviving economy praised by Forbes

Leading American business magazine Forbes has praised the Pakistan government for its success in reviving the country’s economy which is expected to grow at 4 percent despite the Covid 19 pandemic

Jun 07, 2021
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Pakistan

Leading American business magazine Forbes has praised the Pakistan government for its success in reviving the country’s economy which is expected to grow at 4 percent despite the Covid 19 pandemic.

The magazine lauded Islamabad for its prudent policies to stabilize and grow Pakistan's economy and said the efficient management of the pandemic and the success of the International Monetary  Fund (IMF) program was a testament to Pakistan's growth potential and good investment opportunities.

It said when countries like the United States and India have had difficulties in dealing with the coronavirus pandemic, Pakistan has succeeded in reviving its economy, with the growth forecast exceeding initial estimates in 2021.

The State Bank of Pakistan (SBP) initially forecast a 3 percent increase in the Gross Domestic Product (GDP), while the IMF and the World Bank forecast an increase of 1.5 percent and 1.3 percent respectively.

According to the report, quoted by Tribune, the services sector, which is projected to grow at a rate of 4.43 percent in 2020-2021, contributes significantly to the overall growth. The growth rate of the agricultural sector is estimated at 2.77 percent while that of the industrial sector is 3.57 percent.

On May 26 and 27, the Pakistan Stock Exchange (PSX) had witnessed the highest ever buying and selling of 1.56 billion shares and 2.21 billion shares, respectively.

Pakistani investors and traders are optimistic and enthusiastic about the public budget and proposals for further growth.

According to State Bank of Pakistan (SBP) Governor Reza Baqir, flexible monetary and monetary policy has led to unprecedented growth in Pakistan's GDP. The SBP hastily reduced the policy rate by 625 basis points to 7 percent. An aid package equal to 5 percent of GDP was provided.

The SBP governor said the government has also controlled the coronavirus situation as the rate of new Coronavirus cases is 12 out of 1 million people in Pakistan while the rate is 62 cases per 1 million people in the rest of the world.

According to the report, inflation is expected to remain between 7 percent and 9 percent in Pakistan.

(SAM)

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