The State Bank of Pakistan (SBP) has improved its growth outlook for the country, predicting that the national GDP will grow between 1.5pc-2.5pc in fiscal year (FY21), compared to FY20 where Pakistan’s GDP growth contracted by 0.4 percent, said the annual State of the Economy report for 2019-20 issued on Wednesday.
Total foreign exchange reserves have exceeded to $20 billion. Last week, there was the addition of $191 million in the foreign exchange reserves of Pakistan. On 13 November, the total value of foreign exchange was $20.086 billion. $12.93 billion are lying with the government treasury while $7.15 million are lying in commercial banks.
According to a report of State bank, during the first four months of this financial year, there was witnessed a reasonable increase in the current accounts. In September, the current account was $59 million whereas it was $382 million surplus in October. As such, during the first four months of this financial year, there was a surplus balance of $1200 million. In the last year during the same period, there was a deficit of $1.4 billion.
In the report, released by State Bank, it is mentioned that the economy is moving in the right direction. In the current fiscal year, SBP forecasts GDP between 1.5 to 2.5 percent. There has been an increase in the foreign investment, the current account is in control, large scale manufacturing is on increase, remittences are on rise, money transactions are also on the increasing side and there have been positive signs in the business confidence.
Undoubtedly, the textile sector showed a better response in this regard but things could have been far better. This is also a fact that the cement industry also showed good performance in export but here too, the things could have been far better. This is the most appropriate time to make the economy of Pakistan on strong footings.