Size of Pakistan’s economy is $313.13 billion, says SBP

Karachi: Pakistan's economy reached 3131.33 billion dollars, according to the interim data until the end of June 2018 announced by the central bank on Thursday. This is because the gross domestic product (GDP) was calculated in US dollars as the currency declined.

As of the end of June 2017, Pakistan's GDP was $ 304.97 billion, but the economic GDP growth rate in FY 2006 was 13 to 8%. In other words, since December 2017, the rupee fell against the US dollar in the fourth round, so the economy declined on a dollar basis and the 8% growth actually fell to 7%.

The National Bank of Pakistan (SBP) calculates GDP using the monthly average exchange rate for one month, and the calculated exchange rate is about 108 rupees against the US dollar. As the rupee further weakens, the size of the economy may even be displayed in dollars. The depletion of foreign exchange reserves and the expansion of the current account deficit can not save the country from the current account crisis, so the currency is currently around 128 rupees because it causes problems for economic managers.

Since January, SBP raised the main interest rate by 175 basis points and reduced it to 5% to respond to the inflationary pressures increase over the next five months.

Furthermore, the 8% increase registered in FY 2018 is not enough to absorb the number of candidates that developing economies like Pakistan accumulate every year. According to experts and global financial institutions, Pakistan needs at least 7% growth to create adequate employment and control the increase in unemployment. However, due to the adverse effects of more stringent policies to improve macroeconomic stability, there is the possibility of a deceleration in growth during the year.

Rating agencies Moody's and Fitch lowered forecasts of GDP growth in Pakistan, suggesting that the World Bank will slow down to nearly 5% in FY 2006.

According to other data released by the SBP, Pakistan's current account deficit in 2014 was $ 17.99 billion, equivalent to 7% of GDP, more than double the government's forecast.

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According to the National Bank of Pakistan (SBP), the bank's bad debt (NPL) reached 45.6 billion rupees in March this year due to the economic downturn. Careful supervision is necessary in preparation for bad loans, so the increase in nonperforming loans is squeezing the interests of banks. Bank director Syed Ali Raza said in an interview with Mr. Karachi, "There will surely be some impact on bad debts, the impact is controllable, but it will exist." "The flood of the agricultural sector caused a direct loss, but as the country updates the agricultural land, the disaster has a positive side.The production of these farms improved in better, fertile soil It may be done.

As of the end of June 2017, Pakistan's GDP was $ 304.97 billion, but the economic GDP growth rate in FY 2006 was 13 to 8%. In other words, since the Rupee has weakened against the US dollar in the fourth round since December 2017, the economic scale has been shrunk by US dollars and the growth rate of 8% has been substantially reduced to 7%. The National Bank of Pakistan (SBP) calculates GDP using the monthly average exchange rate for one month, and the calculated exchange rate is about 108 rupees against the US dollar. As the rupee further weakens, the size of the economy may even be displayed in dollars. The depletion of foreign exchange reserves and the expansion of the current account deficit can not save the country from the current account crisis, so the currency is currently around 128 rupees because it causes problems for economic managers.