SBP holds firm on growth forecast

Pakistan’s central bank has projected that the country’s economic growth would remain moderate, sticking to its original forecast of 2-3% growth in the ongoing fiscal year 2023-24. It says that achieving a higher growth trajectory over the medium to long run depends on reforms addressing lingering structural issues. In its report on the ‘State of Pakistan’s Economy for the First Half of Fiscal Year 2023-24’, the State Bank of Pakistan (SBP) said, “Despite some improvement in macroeconomic indicators, Pakistan’s economy continues to grapple with structural bottlenecks that hamper the achievement of low and stable inflation with sustainable growth. The major issues include limited savings, low investments in physical and human capital, weak productivity, stagnant exports, a narrow tax base, and inefficiencies in public sector enterprises (PSEs).”