GDP of Pakistan to hit 9 years high in current fiscal year
GDP of Pakistan is expected to rise to 5.2 percent in the current fiscal year, that would mark the highest GDP growth of the country in last nine years. The growth rate of GDP would rise to 5.8 percent in 2019 fiscal year. Growth in the GDP of Pakistan was reported by World Bank.
Before World Bank, the State Bank of Pakistan earlier also reported the same growth rate of country’s GDP.
Here are the reasons why GDP is rising
Increase in economic growth
One of the main reasons why the GDP of the country is increasing is due to the increase in Economic activity in the country. Due to government’s focus on building the infrastructure, many investors from China and Turkey are investing in the country. Moreover, CPEC is the driving force for the Chinese investors to invest more in the country. Not only the government of China but public investors of the country are willing to invest in Pakistan. The economy of the country is $300 billion large now.
Low oil price
The decline in the price of oil globally is favorable for the country’s local investors and owners of small enterprises as their business heavily depends on the consumption of oil.
One of the main issues the country is facing right now is Energy crises. And the government is trying to tackle this burning issue. Due to the efforts of the government World bank under its Green Fund project has assured Pakistan that it will finance solar power projects in the country to improve its energy mix. Due to this project by World Bank and other power projects being built by the government; are attracting the international and local investors to invest more in Pakistan.
Increase in per capita income
Pakistan’s per capita income rises to $1,629 from $1,531, as reported by THE NEWS. Furthermore, another reason why country’s GDP is increasing is because Rupee is being exchanged at better rates against the US Dollar.
Apart from the boom in country’s GDP, the decline in remittances is a big issue which Pakistan is facing right now. Also, the circular debt is rising which might harm the country’s GDP growth projection.