ADB forecasts lower economic growth for Pakistan
ADB forecasts lower economic growth
ISLAMABAD, Jan 3: A sharp decline in the growth of large-scale manufacturing, textile, food and two major crops coupled with constant inflation and increase in international oil prices is expected to bring down the growth of Pakistan’s economy to 6.5 per cent in the current financial year compared to 8.4 per cent last year.
The latest economic update of the Asian Development Bank (ADB) for the first three months of financial year (FY) 2005-06 predicts a GDP growth of 6.5 per cent only.
The country’s foreign exchange reserves have also declined by $1 billion to $8.8 billion in the first five months of the ongoing financial year, as the balance of payments position weakened.
“Cotton output is estimated to be 13 per cent lower than its record level of last year. Sugarcane crop is also expected to be smaller,” the bank observes.
Growth on large-scale manufacturing, the largest sub-sector in the industrial sector, declined sharply to 8.7 per cent in the first three months of FY2005-06 compared with a growth of 24.9 per cent in the corresponding period last year.
Growth in textile and food, the two largest industries, slowed down to 7.2 per cent and 10 per cent, respectively, from 29.6 per cent and 13.5 per cent recorded last year. However, construction continued to expand at a rapid pace, and generation and distribution of electricity also remained better.
ISLAMABAD, Jan 3: A sharp decline in the growth of large-scale manufacturing, textile, food and two major crops coupled with constant inflation and increase in international oil prices is expected to bring down the growth of Pakistan’s economy to 6.5 per cent in the current financial year compared to 8.4 per cent last year.
The latest economic update of the Asian Development Bank (ADB) for the first three months of financial year (FY) 2005-06 predicts a GDP growth of 6.5 per cent only.
The country’s foreign exchange reserves have also declined by $1 billion to $8.8 billion in the first five months of the ongoing financial year, as the balance of payments position weakened.
“Cotton output is estimated to be 13 per cent lower than its record level of last year. Sugarcane crop is also expected to be smaller,” the bank observes.
Growth on large-scale manufacturing, the largest sub-sector in the industrial sector, declined sharply to 8.7 per cent in the first three months of FY2005-06 compared with a growth of 24.9 per cent in the corresponding period last year.
Growth in textile and food, the two largest industries, slowed down to 7.2 per cent and 10 per cent, respectively, from 29.6 per cent and 13.5 per cent recorded last year. However, construction continued to expand at a rapid pace, and generation and distribution of electricity also remained better.
posted by India News Watch at 5:39 AM
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