LAHORE Oct 10 (APP): Economic growth rate of Pakistan
picked up modestly in 2015 16.

This was stated in the annual review of the economy
2015 16, released by the Institute for Policy Reforms (IPR), here on Monday.

The report recognised that some economic indicators have
visibly improved. These include the fiscal deficit, inflation, and the current account deficit.

“For the first time in many years, the government achieved
and exceeded its FBR tax collection target, which grew by 20%.

“The current expenditure remained within budget. Low mark up rates increased demand for private credit,” the report said.

According to the report, the economy’s future prospects
depend on much needed policy changes. There are fundamental issues that prevent the economy to achieve sustained economic growth.

It said that economic growth must be based on two
pillars: improved long term fundamentals, and higher level of productivity.

The report was of the view that Foreign Direct Investment
(FDI) is low despite inflows from China; however, workers remittance is presently in modest growth.

It further said that industry grew by 3.21%. It is encouraging to see private sector credit increase by 105%, it added.