Staff Report
ISLAMABAD: With significant signs of economic recovery, the government would continue to follow the positive reform momentum to boost the competitiveness of country’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery.
“Pakistan economy has shown significant signs of economic recovery with fast resumption of economic dynamism,” says the monthly Economic Update and Outlook for June 2021. According to the report, the government had introduced comprehensive measures to ensure sustainable growth.
“In recent budget 2021-22, government has taken growth-oriented initiatives and will continue to follow the positive reform momentum which will help to boost the competitiveness of Pakistan’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery,” it adds.
According to the report, the rebound in economic activity is expected to continue in coming months on account of reopening of economic activities and acceleration in vaccination process. It says, the recent economic recovery (real GDP growth 3.94 percent in FY 2021) and government measures for inclusive and sustainable growth has built investor confidence.
“It is expected that economy will keep its trajectory of higher growth without any macroeconomic imbalances,” it adds.
Meanwhile giving details about the performance of various sectors of economy, the reports adds, the large scale manufacturing has surpassed its pre-COVID level during July-April FY 2021 and clocked its fifteen-year high growth rate of 12.8 percent as compared to 8.7 percent slump last year. In April FY 2021, LSM witnessed 68 percent growth on YoY basis.
On the other hand, the CPI inflation decelerated to 10.9 percent in May 2021 compared to 11.1 percent in the previous month due to a fall in fuel, electricity and food prices.
During July-May FY 2021, consumer inflation was recorded at 8.8 percent compared to 10.9 percent in the corresponding period a year earlier.
