PM Nawaz expects economy to grow by over 5pc in 2015-16

COLOMBO: Pakistan’s economy is expected to grow at more than 5 per cent in the current fiscal year due to some bold economic reforms, Prime Minister Nawaz Sharif said on Tuesday, faster than a 4.2 per cent growth in the previous year.

Speaking at a forum during an official visit to Sri Lanka, Sharif said the economy has progressed well despite fighting against extremism and terrorism.

"Democracy creates far better opportunities for both economic growth and cultural progress than the authoritarian regimes. My government has placed strong emphasis on bold economic reforms to achieve significant improvement in all sectors of the economy," Sharif said.

"It (GDP) is expected to be over 5 per cent this year."

Pakistan’s economy grew 4.2 per cent in fiscal 2015, but investors remain wary of systemic weaknesses, the central bank said last month, urging the government to adopt clearer, more consistent policies on industry and trade.

The growth was below the 5.1 per cent target in the last year, but still better than the 4.0 per cent achieved in 2014.

Pakistan benefited from lower global prices of oil and commodities, which helped bring inflation down and that has helped to mitigate disappointing exports and a lack of investment, two factors that would have spurred greater growth.

Sharif on Tuesday at a different forum said Sri Lanka and Pakistan have agreed to include services in a bilateral free trade agreement (FTA).