SBP quarterly reports show improvement in economy

ISLAMABAD: Two quarterly reports of the State Bank on country’s economy presented in the Senate on Thursday have shown improvement in economic indicators and country on way to betterment.

The government laid before the Senate two quarterly reports of the State Bank of Pakistan on the state of country’s economy and the Biannual Monitoring on Implementation of National Finance Commission Award.

The reports were presented to the House by Minister of State for Parliamentary Affairs, Aftab Sheikh on behalf of Minister for Finance, Revenue, Economic Affairs and Statistical Division.

The State Bank reports included first quarterly report 2013-14 and second quarterly report 2013-14, as required to be presented before the House under section 9A (f) of the State Bank of Pakistan Act 1956.

A report on Media Manual on Climate Change and Reducing Emissions from Deforestation and Forest Degradation (REDD+) prepared by the Sub-Committee on Environment of the Senate Functional Committee was presented to the House by Convener of Committee Mushahid Hussain Sayed.

According to the first quarterly report of the State Bank, since macroeconomic indicators were favorable at the start of the year, the increase in real GDP growth in financial year 2014 was discernible.

The report states, estimates for first quarter growth exceeded expectations showing GDP growth by five percent as compared to 2.9 percent in 2013 and a target of 4.4 percent for the full year.

As anticipated, industry and services were the major drivers of growth, as agriculture performed below target.

The second quarterly report of the State Bank stated that by the end of first half of 2013-14, there was a perceptible improvement in the country’s macroeconomics indicators.

Inflationary pressures have softened in post November period while pressure on foreign exchange reserves and the Pak rupee parity had eased in December 2013.

The report says that LSM is showing improvement, which is supported by an increase in credit to private sector and as reported by Finance Ministry, the fiscal deficit as a percentage to GDP had declined in first half of financial year.