News
Friday, April 08, 2011
Economy to grow by 4 pc in new fiscal year: official* Finance Ministry official says economy picking up steam again after floods pushed back growth to around 3% this year
ISLAMABAD: Pakistan’s economy is expected to grow 4 percent in the coming financial year starting July 1, picking up steam again after devastating floods pushed back growth to around 3 percent this year, officials said on Thursday.
“We are looking at a growth rate of 4 percent for the next year because of a good services sector and on hopes of better farm output,” said a Finance Ministry official who did not want to be identified.
The figure compares with a 3.7 percent growth forecast by the Asian Development Bank (ADB) in its “Outlook 2011” report released on Wednesday.
The ADB expects persistent energy problems and security issues will continue to check Pakistan’s growth in 2011-12, with surging inflation posing a further major risk.
Nuclear-armed Pakistan, a critical US ally in the fight against terrorism, has struggled to revive its sluggish economy even after securing an $11 billion loan from the International Monetary Fund (IMF) in November 2008 after a balance of payments crisis.
Last year, the worst-ever floods to hit the country inflicted $10 billion in losses, forcing officials to slash growth estimates to between 2.5-3 percent for the current year, down from an expected 4.5 percent. The services sector, however, is likely to grow by 4 percent in the current year to June, and there are signs that the farm sector is recovering from the flooding.
The National Economic Council, a top economic-decision making body, will meet next month to firm up yearly targets. Higher cotton, rice and sugar output is expected in the coming year, analysts said.
“We expect that 2011-12 will be much better than this year ... Our own (growth) forecast is close to 4.5 percent,” said Sayem Ali, an economist.
An official at the Planning Commission, which prepares growth targets, also spoke of likely 4 percent growth next year. reuters
Courtesy www.dailytimes.com.pk