State Bank Governor: Pakistan economic growth projected at 3% for FY21
In an interview with Khaleej Times on Friday, Dr. Baqir said that Pakistan's economy could proliferate.
Pakistan’s economic growth rate is expected to be 3% this fiscal year.
This was stated by the State Bank of Pakistan (SBP) Governor, Dr. Reza Baqir.
In an interview with Khaleej Times on Friday, Dr. Baqir said that Pakistan’s economy could proliferate.
“Yes, we have the potential to grow at a much higher rate in coming years. The State Bank of Pakistan projects 3% GDP growth in the financial year 2020-21 and 4% in 2021-22,” he said.
“We’ve strong economic indicators this year despite the Covid-19 pandemic challenges, and this is a good omen for the economy.”
“The government ensures more than ₨. 2 trillion stimuli to steer the economy out of the Covid-19 crisis by supporting the businesses via much-needed liquidity and funds distribution at the grass-root level,” Dr. Baqir said.
He informed that the central bank offered ₨. 450 billion liquidity under its Temporary Economic Refinance Facility (TERF) to the private sector to absorb the coronavirus shock.
Another ₨. 240 billion was provided as working capital to avoid layoffs and job losses.
“The central bank also offered a ₨. 900 billion cushion to banks to ensure relief to distress businesses in deferment and restructuring of a principal payment and mark-up charges.”
“These are some of the measures which aided the economy to bounce back quickly to meet international demand after the lockdown period,” he said.
It is pertinent to note that the IMF has projected 4% GDP growth for Pakistan during the fiscal year 2021-22, which starts in July.
The South Asian country is expected to post a 1.5% expansion during the current fiscal year ending on the 30th of June after an irregular contraction of -0.4% last year.
Moreover, the newly-appointed Finance Minister, Shaukat Tarin, said Pakistan would go for an ambitious 6% economic growth target in the next two years.
This comes in the light of the IMF’s willingness to renegotiate harsh conditions for $6 billion loan in the wake of rising Covid-19 cases.
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