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Article

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Pakistanhas been one of the fastest growing economies inAsiafor last five years. Economic growth rates have risen from 1.8 percent in 2000/01 to average 6-7 percent a year. ForPakistanthese rates are not spectacular but a reversion to mean. It may be recalled that the average annual growth rate of GDP over 60 year period ofPakistanhas been 5.2 percent. Manufacturing sector output growth was over 15 percent, exports have doubled in US dollar terms in 5 years and an open trade regime has allowed imports to triple. Tax revenues have risen by 14 percent a year reducing fiscal deficit which used to average 7 percent a year in the 1990s to average 4 percent. External debt burden has been halved from 52% of GDP to 26% GDP and is projected to be on a declining path. The country’s capacity to service its debt has considerably improved as debt servicing ratio which used to preempt almost 60 percent of public revenues is now down to 28 percent. Poverty incidence has fallen from 34 percent to 24 percent according to official estimates while 29 percent according to the World Bank. Unemployment rate is down to 6.5 percent from 8.4 percent.

Publication Source

Blue chip : the business people's magazine

Publication Date

11-2008

Pages

1-10

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