December 31, 2024 (MLN): The initial dip in GDP growth masks the strong foundations being laid for an economic rebound, with large-scale manufacturing expected to recover as key drivers aligned.
Commenting on the recently published growth numbers by the Pakistan Bureau of Statistics (PBS), Advisor to the Finance Minister, Khurram Schezad, in a series of Tweets termed the GDP growth for 1QFY25 at 0.92% a 'modest start' primarily constrained by a 1.03% contraction in the industrial sector.
In contrast, the agriculture sector grew by 1.15% and the services sector by 1.43% providing positive contributions, and showcasing resilience.
The policy rate cut, implemented on June 24, will gradually have a positive impact on industrial growth, Khurram Schehzad added.
Lower borrowing costs gradually encourage investments, new credit disbursements, and capacity expansion, which will likely gain momentum in the quarters ahead, he noted.
The historic decline in inflation and stabilization of the PKR/USD parity are set to improve aggregate demand, said Khurram Schehzad
