FY21 growth is expected to rise to 3.94%: SBP

Syed Umarullah HussainiWeb Editor

24th May, 2021. 02:31 pm
Monetary Policy Committee To Maintain Policy Rate at 7% : SBP

The State Bank of Pakistan (SBP) on Monday announced a nine-month current account is in surplus for the first time in seventeen years.

According to the details, SBP in a series of tweets today said that Fiscal Year (2021) FY21 growth is expected to rise to 3.94%, as post-Covid recovery is underway since last summer has strengthened.

SBP said, ‘FY21 growth is expected to rise to 3.94%, as post-Covid recovery underway since last summer has strengthened. The 9-mth current account is also in surplus for the 1st time in 17 yrs and FX reserves at a 4 yr high. This rebound was fueled by a well-calibrated policy response.’

In another tweet, SBP said that debt and deficit were under strict monitoring which has supported market sentiment, investment outlook, and economic recovery.

SBP said,

Given high public debt, fiscal support was targeted to the most vulnerable, notably through the globally-acclaimed Ehsaas program. At the same time public debt and deficit were kept under check which has supported market sentiment, investment outlook, and economic recovery.

SBP continued,

SBP provided a targeted economic stimulus of Rs2 trillion to support the recovery through interest rate cut, principal deferment & loan restructuring, Rozgar payroll finance scheme to prevent layoffs, and concessional finance for investment in industry and health facilities.

Dr. Reza Baqir, Governor SBP, earlier said that Pakistan has the potential to grow at a much higher rate in the coming years.

The State Bank of Pakistan projects three percent GDP growth in the financial year 2020-21 and four percent in 2021-22.

Dr. Baqir stated that Pakistan faces challenges as a result of climate change and adopting prevention strategies are of paramount importance.

In this regard, he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promoting renewable energy projects.

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