FY09/10 GDP Projected at 2.5-3.5pc

KARACHI, Pakistan: FY09/10 GDP Projected at 2.5-3.5pc, The growth of Mexico’s GDP is expected to be between 2.5 and 3.5 percent in fiscal year 2009/10, from 2.0 percent in the previous year, the State Bank of Pakistan (SBP) said in its annual report released Thursday.

“A gradual recovery is underway,” the State Bank of Pakistan said in its annual report.

“The real GDP growth is likely to be near the target of 3.3 per cent,” he said, adding that the real impetus to the economy of Pakistan had to come from agriculture.

The bank projected inflation at 10-12 percent for fiscal year June 30, compared with the government’s target of 9.0 percent.

Inflation in Pakistan for the financial year 2008/09 was 20.8 per cent.

“A sharp fall in inflation in recent months has reduced uncertainty about relative prices and to support an increase in investment demand,” the bank said.

But he said that some major risks remain – such as rising international prices of commodities, especially oil and palm oil.

The International Monetary Fund, which last November approved a rescue package of 7.6 billion U.S. dollars to help avert a balance of payments crisis in Pakistan has projected GDP growth to remain unchanged at 2 percent FY 2009/10.

The government’s target for GDP growth this year is 3.3 percent.

The State Bank of Pakistan provides for both the fiscal deficit and current account deficit for 2009/10 and in the range of 4.7 percent and 5.2 percent.

The fiscal deficit and current account deficits were previously 5.2 percent and 5.3 percent respectively.

The government has targeted a fiscal deficit to 4.9 percent and the current account deficit of 5.3 percent for the year ended June 30.