The country’s economy appears to have turned the corner. The State Bank says that after several years of low growth, sentiments about the economy seem to have improved during the third quarter of the outgoing fiscal year (FY14).
“Manifestations can be seen in the rebound in real GDP growth; a rise in private sector credit, a contained fiscal deficit, the subdued inflation outlook, a sharp increase in foreign exchange reserves and appreciation and subsequent stability in the exchange rate,” the SBP said in its 3rd quarterly report issued on Thursday.
The bank praised the government for steps taken to improve the economy For example, the government’s resolve to address the energy shortage, a growing perception of business-friendly policies and external inflows that have been anticipated for many years, have recently been realised.
More specifically, the report said, auction of 3G/4G licences, a larger than projected inflow via Eurobond, programme loans from the international financial institutions and SBP’s efforts to support the foreign exchange reserves have sharply improved the outlook of the country’s external sector and, to some extent, its fiscal position.
