State Bank and IMF revise Pakistan’s GDP growth projection upward to 4-5% and 3.9%, respectively
The revised predictions are an increase from the earlier projections of 3.9% and 1.5%.
Both the International Monetary Fund (IMF) and the State Bank of Pakistan (SBP) have revised their predictions about Pakistan’s GDP due to domestic economic recovery and robust economic activity.
State Bank of Pakistan (SBP)
The State Bank of Pakistan (SBP) projected Pakistan’s economic growth rate to remain between 4%–5% during the current fiscal year.
This was revealed by the SBP Governor, Dr. Reza Baqir, while addressing a virtual news conference in Karachi on Tuesday.
The SBP’s revised projection is an increase from an earlier forecast of 3.9%.
The SBP changed its GDP prediction due to domestic economic improvement and a recovered inflation outlook.
Moreover, the rise in consumer and business confidence was also a critical factor in the SBP’s decision to revise the GDP growth.
The SBP governor reiterated that the main critical risk to economic growth could stem from the spike in the coronavirus cases amid a low vaccination rate.
Baqir also disclosed that Pakistan’s economic recovery was primarily driven by large-scale manufacturing (LSM), construction, and service sectors.
International Monetary Fund (IMF)
The IMF (International Monetary Fund) revised Pakistan’s GDP growth to 3.9% for 2021.
This was revealed in the IMF’s “World Economic Outlook, Fault Lines Widen in the Global Recovery” report published on Tuesday.
The SBP’s revised projection is an increase from an earlier forecast of 1.5%.
On the other hand, the IMF has projected Pakistan’s GDP at 4% for 2022.
According to the IMF, the projections have been revised up for the Middle East and Central Asia due to robust activity in some countries (such as Morocco and Pakistan).
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