KARACHI : Pakistan’s central bank said Thursday it expected economic growth to remain below the target and forecasted an increase in the inflation rate.
In its economic review report, the State Bank of Pakistan (SBP) noted that Pakistan would be unable to achieve its gross domestic product (GDP) target of 6.2 percent in the ongoing fiscal year.
The growth rate will remain between 4.7 and 5.2 percent, it added.
The report also indicated that the industrial sector was expected to experience sluggishness, whereas the agricultural sector would perform worse than the previous year.
Both sectors’ hampered growth, in turn, will trickle down into the tertiary, or services, sector, the central bank mentioned.
While the inflation rate limit was initially set at 6.0 percent, three factors — namely electricity, gas, and higher dollar rates — are likely to bump up the prices, which would translate into a hike between 6.5-7.5 percent.