Pak's economic growth rate will go down: UN report
The decline in 2006 was caused due to surge in oil prices and the devastation caused by the October 2005 earthquake, the report said.
By PTI |
ISLAMABAD: The United Nations Economic and Social Survey Report for Asia and Pacific predicts that Pakistan's economic growth rate will decline during 2007. The report, which was released here yesterday, said that Pakistan's economy has grown at an average rate of more than 7.5 per cent over the last three years and has slowed down to 6.6 per cent in 2006.
The decline in 2006 was caused due to surge in oil prices and the devastation caused by the October 2005 earthquake, the report said.
It said the low agriculture growth of 2.5 per cent in 2006 from 6.7 per cent in 2005 with negative downstream impacts on the textile and sugar industries and decline in large scale manufacturing from 15.6 per cent in 2005 to 8.9 per cent have also contributed to the declining trend.
In 2006, Pakistan's fiscal deficit was estimated at 4.2 per cent of GDP, up from 3.3 per cent of GDP in 2005. The prices for food items in Pakistan rose by 7.9 per cent, the report said, adding shortfall in cereal production contributed to inflation in neighbouring Afghanistan.
It stated that reforms were needed to sustain high growth and poverty reduction. With fiscal adjustment a challenge more progress is needed in tax collection and resource mobilisation to reduce large budget deficits, it added.
The decline in 2006 was caused due to surge in oil prices and the devastation caused by the October 2005 earthquake, the report said.
It said the low agriculture growth of 2.5 per cent in 2006 from 6.7 per cent in 2005 with negative downstream impacts on the textile and sugar industries and decline in large scale manufacturing from 15.6 per cent in 2005 to 8.9 per cent have also contributed to the declining trend.
In 2006, Pakistan's fiscal deficit was estimated at 4.2 per cent of GDP, up from 3.3 per cent of GDP in 2005. The prices for food items in Pakistan rose by 7.9 per cent, the report said, adding shortfall in cereal production contributed to inflation in neighbouring Afghanistan.
It stated that reforms were needed to sustain high growth and poverty reduction. With fiscal adjustment a challenge more progress is needed in tax collection and resource mobilisation to reduce large budget deficits, it added.
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