SBP Governor Dr. Reza Baqir expects the economy to ”grow by 3.5%”

The target of the government is to increase economic output by 2.4% whereas multilateral lenders anticipate the GDP to grow at 2.8%.

  • ”The tough part of stabilization program is over and we are out of the crisis”, Reza Baqir
  • The government is optimistic about economic stabilization due to fiscal and monetary reforms.
  • “Low saving rate is the reason why we have borrowed heavily to invest and this recurring balance of payment crises,” Reza Baqir.

SBP

Despite of an unprecedented slowdown, governor of State Bank of Pakistan (SBP) said that the economy will grow up to 3.5%. However, there has been a sharp decrease in manufacturing output and private investment dry up has been witnessed at the cost of substantial job losses.

The target of the government is to increase economic output by 2.4%. However, multilateral lenders anticipate the GDP to grow at 2.8%.

Economic Stabilization:

The government is optimistic about economic stabilization due to fiscal and monetary reforms.

While talking to a gathering organized by the American Business Forum (ABF) Baqir said, “The tough part of stabilization program is over and we are out of the crisis. Now, we have space to execute structural reforms to support long-term growth.”

“We have managed to fix the economy and our foreign currency reserves are increasing; we no longer need to worry about the balance of payments crisis.”

Reza Baqir further said the government had already implemented tough and unpopular decisions. Moreover, the increase in foreign exchange reserves has helped SBP to focus on structural reforms. An increase in exports and a decrease in imports played a significant role to stabilize the economy.

Other than, the traditional ways our top priority is to support exports and find new sectors for exports.  Saving is the topmost priority of Pakistan as the country has faced a chronic problem of balance of payments, says Baqir.

“Low saving rate is the reason why we have borrowed heavily to invest and this recurring balance of payment crises,” Reza Baqir.


Also See:

Situation Of Economy Is Better Than What It Was Six Months Ago: SBP Governor Reza Baqir

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