Pakistan’s economy set to grow further in 2017: Report


ISLAMABAD, Jan 17 (APP): Pakistan economy is all set to grow further during current year due to government’s pro-growth policies as indicated in the bulking of its economic indicators.
According to a report carried by a section of press, it said as Pakistan continued its march from being a frontier economy to becoming an emerging market, 2017 may be the best year in the country’s 70-year-long history.
These changes are likely to take place from increase in foreign investment to the auto industry.
Although gross domestic product (GDP) growth forecasts by International Monetary Fund, World Bank and others may vary but Pakistan’s GDP is likely to grow by 4.7 per cent this year.
The annual GDP may increase from $270 billion to around $300 billion and for the first time, the Purchasing Power Parity may cross the $1 trillion mark, it added.
It said Pakistan is currently 40th largest economy in the world and its ranking may improve by a point or two.
The report further said Pakistan would enter MSCI’s Emerging Markets category in May, meaning larger amounts would inflow.
The MSCI is a leading provider of international investment decision support tools.
In 2016, Pakistan Stock Exchange (PSX) provided 46 per cent returns. KSE-100 benchmark index is also likely to cross 55,000 points from current nearly 48,000 points.
Forty per cent stakes in PSX will go to Chinese consortium and this is likely to bring large institutional investors from other countries.
The report further said more large shopping malls would be built or become operational across major urban centres. Superstore chains will open new stores in unprecedented three-digit numbers.
The Foreign Direct Investment in the current year might cross the $1-billion mark. The remittances may pick up to reach $20billion mark.
Inflation may remain between four and five per cent as low oil prices are expected to stay stable whereas finance sector will increase focus on financial inclusion, generating opportunities for micro-finance and commercial banks.
Pakistan, at 144 out of 190 countries, was among top 10 global improves in World Bank’s 2017 Doing Business rankings. In the 2018 ranking, it will improve further.
The report said Pakistan may need additional 100,000 trucks to meet the China Pakistan Economic Corridor (CPEC) related material and freight transport needs.
Demand for locally manufactured new and imported used cars will continue to rise with interest from Volkswagen, Kia, Renault and Nissan for manufacturing plants in Pakistan, it added.