According to economic survey released by the Ministry of Finance, Pakistan’s growth rate has reached 5.28 percent which is not only the nine-year high, but also more than the estimated rate of 5.2 percent projected by the Asian Development Bank for 2016-17. In a report earlier appeared in April, the Asian Development Outlook had projected the growth rate at 5.2 percent, but increase in the gross domestic product more than expectation is being seen as promising in the given situation of the country. The bank attributes the economic growth to the revival of agriculture and services sectors and steady expansion in the construction industry where as the private sector has come as the largest investor. The bank has now projected growth rate at 5.5 percent for the current fiscal year. Overall, the bank predicts that the economic outlook for South Asia will remains robust and the regional economies will gain a high growth rate during the current fiscal year. The bank has upgraded the regional growth outlook from 5.7 percent to 5.9 percent for the current fiscal year and from 5.7 percent to 5.8 percent for 2018-19. However, the bank takes a cautious view on the sustainability of the possible export push.
The report also predicts that the economic growth prospects have improved in Asia on the basis of stronger-than-expected export demand during the first quarter of this year. The Developing Asia has taken a good start where exports have improved, and have pushed the growth prospects for the rest of the current fiscal year. As a matter of fact, various world economies are facing recession and the lingering uncertainties are casting doubts on the economies. However, the bank deems the regional economies are well placed to face the challenges of any potential shock any time during the year.
The world outlook of the economy is changing as the developing nations have started showing signs of recovery in this region. South Asia is the most populous region and it is hoped the human resources will have leading role in the development of various sectors of the respective economies. The bank puts the combined growth for the major industrial economies at 1.9 percent for the next two years. In Pakistan’s perspectives, the policymakers only need to monitor the economic situation in the region and facilitate the local economy to grow on its own without the government interference.
