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August 3, 2020

Pakistan’s Economy is Now Worth $300 Billions

Pakistan’s economy has reached a record size of $300 billion and the future forecast is favorable. The South Asia’s second biggest economy grew by 5.3 percent in the fiscal year that ended June 30, 2017 and is on course to even high growth rate according to international financial institutions, including the IMF.

A recent country report by the IMF praised the efforts by the authorities for committing to the reforms and achieving macroeconomic stability. IMF has forecast 6 percent growth over the medium-term.

According to official statistics, the current per capita income stands at $1,629 today, compared to $1,334, four years ago, a 22% increase. Inflation is expected to be 4.38% in FY 2017 compared to annual average of 12% between FYs 2008-13.

The fiscal deficit has been reduced from 8.2% in FY 2013 to 4.6% in FY 2016.Tax collection increased by around 73% in the last 4 years as compared to growth of 3.38% only in FY 2013.

Our Foreign Exchange reserves are sufficient for import cover of over 4 months, as compared to only a few weeks of import cover in 2013. Pakistan also completed all 12 reform steps of the IMF Extended Fund Facility program in September 2016, for the first time in our history.

Reputable international institutions such as Price Waterhouse Coopers (PwC) have projected Pakistan to be amongst the 20 largest economies of the world by the year 2030. A  recent Harvard study has indicated that Pakistan will have 6% GDP growth in next 10 years, second highest in South Asia, according to the country’s finance minister.

 

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