Pakistan economy to grow above 6pc
AFP, Karachi
Pakistan's economy is likely to expand at over 6.0 percent this fiscal year but high world oil prices and water shortages threaten growth, the central bank said in its annual report released over the weekend. Inflation is also expected to be a concern with the goal of bringing it down to below 5.0 percent from the current 9.0 percent unlikely to be achieved, the State Bank said. Releasing its annual report for the 2003-2004 financial year that ended on June 30, the central bank did not specifically say whether the government's official target of 6.6 percent for the current year would be met. But it said growth momentum from the previous 12 months, in which the economy expanded by 6.4 percent, would generally continue and the forecast for the current financial year was an expansion of "over 6.0 percent". "The risks to the fiscal year 2005 prospects emanate mainly from an exceptionally high escalation in oil prices that can adversely affect the current account and fiscal balance, putting pressure on exchange and interest rates," said the report, released on Saturday.
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