KARACHI: Pakistan’s central bank on Tuesday projected the country’s economic growth rate to remain between four and five percent during the current fiscal year, as it revised its earlier forecast of 3.9 percent due to domestic economic recovery and improved inflation outlook.
The central bank also decided to keep the key policy rate at seven percent, a stance it has been maintaining since June 2020.
“The Monetary Policy Committee [MPC] was encouraged by the continued domestic recovery and improved inflation outlook following the recent decline in food prices and core inflation to keep the policy rate unchanged,” said Governor State Bank of Pakistan (SBP) Dr. Reza Baqir while addressing a virtual news conference in Karachi.
“Besides, the consumer and business confidence have risen to multi-year highs and inflation expectations have fallen,” he said, adding: “Due to these positive developments, growth is projected to rise from 3.9 percent in FY21 to 4-5 percent this year.”
The SBP governor maintained the key risk to economic growth could come from the spike in COVID-19 cases amid a low vaccination rate.
“The MPC felt that the uncertainty created by the ongoing fourth COVID-19 wave in Pakistan and the global spread of new variants warranted continued emphasis on supporting the recovery through accommodative monetary policy,” he added.
Discussing the country’s current account deficit, he said the imports were expected to grow on the back of the domestic economic recovery.
“The MPC noted that the market-based flexible exchange rate system, resilience in remittances, an improving outlook for exports, and appropriate macroeconomic policy settings should help contain the current account deficit in a sustainable range of two to three percent of the GDP in FY22,” he added.
Baqir said that Pakistan’s economic recovery was primarily driven by large-scale manufacturing, construction and service sectors.
He added that growth was further expected to pick up during the current fiscal year due to several measures announced in the budget.
Such measures include increased development spending along with reduced regulatory duties and sales tax on the import of raw materials and capital goods.
“These measures will directly benefit the construction and allied industries, as well as export-oriented industries. Agricultural growth is also expected to contribute favorably [to the economy] despite reported water shortages at the start of the sowing period of Kharif crops,” the SBP governor said.
The governor said that Pakistan’s external position was at its strongest in the last several years.
“This is the lowest current account deficit in 10 years, supported by all-time high exports and remittances. The SBP’s forex reserves rose by $5.2 billion during FY21 to end at over $17 billion or around three months of imports,” he added.
Pakistan’s central bank raises GDP forecast to 4-5% amid domestic economic recovery
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Pakistan’s central bank raises GDP forecast to 4-5% amid domestic economic recovery
- The State Bank of Pakistan decides to retain the key policy rate at seven percent, a stance it has been maintaining since June 2020
- The central bank governor says the risk to economic growth could stem from a surge in COVID-19 cases amid a low vaccination rate
Sri Lanka seal gritty T20 win over Pakistan to level series
- In a contest trimmed to 12 overs a side, Sri Lanka scored 160 runs before choking Pakistan to 146-8
- The series saw the visitors clinch the opener by six wickets before rain washed out the second game
Dambulla: Sri Lanka eked out a hard fought 14-run victory over Pakistan in the third T20 at rain-hit Dambulla on Sunday, easing their batting jitters and squaring the three-match series 1-1.
The series, a warm-up for the T20 World Cup with Pakistan set to play all their matches in Sri Lanka due to political tensions with nuclear-armed neighbors India, saw the visitors clinch the opener by six wickets before rain washed out the second game.
“We were a bit worried about our batting and I’m glad we addressed that today,” said Wanindu Hasaranga, who walked away with both Player of the Match and Player of the Series honors.
“The bowlers did a good job too. The ball was wet and it wasn’t easy. We tried to bowl wide and slow and asked them to take risks.”
Hasaranga took four wickets in the game and in the process completed 150 wickets in T20Is.
In a contest trimmed to 12 overs a side, Sri Lanka muscled their way to a competitive 160 before choking Pakistan to 146-8.
Having been bowled out inside 20 overs in the series opener, Sri Lanka needed a statement with the bat and duly ticked every box after being put in.
The top order laid the platform and the middle order applied the finishing touches.
Wicket-keeper Kusal Mendis made hay under the Power Play, blasting 30 off 16 balls while Dhananjaya de Silva (22 off 15) and Charith Asalanka (21 off 13) kept the scoreboard ticking.
Skipper Dasun Shanaka then swung the momentum decisively, clubbing 34 off just nine deliveries, peppered with five towering sixes.
The sixth-wicket stand between Shanaka and Janith Liyanage produced 52 runs in just 15 balls and proved the turning point, shifting the game firmly Sri Lanka’s way.
Pakistan came out swinging in reply, racing to 50 in just 19 balls with captain Salman Agha hammering 45 off 12 balls, including five fours and three sixes.
But once the field spread, Sri Lanka tightened the screws, applied the choke and forced the asking rate to spiral.
“It was a good game of cricket,” Agha said.
“We conceded too many runs, but our batting effort was good. Unfortunately, we fell short. We know we are going to play all our World Cup games in Sri Lanka and it’s important that we played in similar conditions,” he added.
