Pakistan’s economy grows beyond targets

Updated 11 March 2014

Pakistan’s economy grows beyond targets

KARACHI: Pakistan recorded five percent growth in the first quarter of the current fiscal year, the central bank said, beating its target and almost doubling the figure for the same period last year.
The State Bank of Pakistan data for the early months of the financial year began in July, 2013 said GDP grew by 5.0 percent, compared with only 2.9 percent in the first quarter of the last fiscal year.
Pakistan has struggled to energize its economy in recent years.
Growth has bumped along well below the level experts say is needed to absorb new entrants to the workforce from Pakistan's growing, youthful population.
"Since the macroeconomic indicators were favorable at the start of the year, the increase in real GDP growth in fiscal year 2014 was discernible," the bank said.
Pakistan's economists had set a growth target for the current financial year of 4.4 percent, and the central bank in earlier reports had forecast growth of four percent.
The upbeat first quarter performance came on the back of good performances by the industrial and services sectors, the report said.
The bank however warned that inflation swelled to 8.1 percent in the first quarter compared with 5.6 percent in the corresponding period last year.
The IMF approved a $6.7 billion bailout loan package for Pakistan in September last year to help the country achieve economic reforms, particularly in its troubled energy sector.
The fund also observed that Pakistan's economy was picking up.


Saudi Arabia, Iraq confirm full commitment to OPEC+ agreement- statement

Updated 48 min 12 sec ago

Saudi Arabia, Iraq confirm full commitment to OPEC+ agreement- statement

  • Both countries ministers said efforts by OPEC+ to meet their output cuts will enhance market stability

RIYADH: Saudi Arabia and Iraq on Monday confirmed their full commitment to the OPEC+ agreement.
Saudi Minister of Energy Prince Abdulaziz bin Salman, and Iraqi Oil Minister Ihsan Abdul Jabbar Ismail held discussions on developments in the oil markets, the improved global demand for oil, and progress in implementing the current OPEC+ agreement to reduce production.
OPEC and its allies led by Russia, a group known as OPEC+, agreed to cut oil output from May by a record 9.7 million barrels per day (bpd) after the coronavirus crisis destroyed a third of global demand.
The record cuts are now due to run to the end of July, before tapering to 7.7 million bpd until December.
But some OPEC members have not fully delivered on their agreed production cuts since May.
During a phone call, the Saudi minister commended Iraq’s performance within the framework of the agreement, as the country’s level of commitment in June reached nearly 90 percent.
Prince Abdulaziz thanked the Iraqi minister for his efforts in reaching the target, and expressed his confidence that Iraq will continue to improve its level of compliance with the oil cuts.
Ismail said Iraq would continue to improve compliance with the cuts to reach 100 percent by the start of August, pledging to compensate from July to September for the overproduction in May and June.
Both ministers also said that efforts by OPEC+, and the participating countries in the agreement, to meet their output cuts would enhance market stability and speed up their balanced recovery.

  • With Reuters