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Pak central bank disputes govt claim on growth rate
Karachi, June 26: Central State Bank of Pakistan has disputed a government claim that the country has emerged the fastest growing economy in South Asia with a 5.1 per cent growth rate, saying that the GDP might not exceed 4.6 per cent during the current fiscal year.
Karachi, June 26: Central State Bank of Pakistan has disputed a government claim that the country has emerged the fastest growing economy in South Asia with a 5.1 per cent growth rate, saying that the GDP might not exceed 4.6 per cent during the current fiscal year.
The bank agreed that performance of the country's economy was "impressive" during the fiscal year ending June 30, but pointed out discrepancies in the data gathered by the government in predicting a 5.1 per cent gross domestic product.
"Not withstanding the impressive performance of the economy, the estimated 5.1 per cent growth in real GDP (against the 4.5 per cent annual growth target) requires some explanation", the bank report said.
Finance Minister Shaukat Aziz, while presenting the national budget at the parliament on June 7, said that the positive macro economic data for the first 11 months of the current year showed the GDP growth of 0.6 per cent higher than the targeted 4.5 per cent.
After adjustments "the estimated growth for the fiscal 2003 comes down to approximately 4.6 per cent," the bank observed.
The central bank, however, said the economy performed well "despite negative shock" due to the conflict in Iraq that pushed up Pakistan's oil bill and increased energy and transportation charges.
Bureau Report
"Not withstanding the impressive performance of the economy, the estimated 5.1 per cent growth in real GDP (against the 4.5 per cent annual growth target) requires some explanation", the bank report said.
Finance Minister Shaukat Aziz, while presenting the national budget at the parliament on June 7, said that the positive macro economic data for the first 11 months of the current year showed the GDP growth of 0.6 per cent higher than the targeted 4.5 per cent.
After adjustments "the estimated growth for the fiscal 2003 comes down to approximately 4.6 per cent," the bank observed.
The central bank, however, said the economy performed well "despite negative shock" due to the conflict in Iraq that pushed up Pakistan's oil bill and increased energy and transportation charges.
Bureau Report