GDP records impressive 5pc growth in July-Sep. quarter: SBP

KARACHI: The economic policy of the new government has started giving positive results, as the gross domestic product (GDP) grew by an impressive 5 percent during the first quarter of the current financial year (2013-14) exceeding the previous year’s 4.4 percent in same period, the State Bank of Pakistan released in a report said today.

The report said that the 1st Qr. CFY growth rate of 5 percent when compared with the overall growth of mere 2.9 percent during the entire financial year 2012-13 appears quite impressive.

The government should step up it reforms and developments in the financial and energy sectors for further improvement in the economy, said the SBP report.

The report said that industry and services sectors have played an important role in the growth of the economy, while agriculture lagged behind the target.

The government borrowing increased during the period under review and it could not meet the International Monetary Fund (IMF) condition in this regard, said the report.
Besides, the forex reserves were seen under pressure due to repayments of foreign loans, which saw the rupee against dollar devalued by 6 percent.

The report said that the volume of remittances from the expatriate Pakistanis remained quite encouraging, while the foreign investment disappointing.