KARACHI: Pakistan’s gross domestic product (GDP) is likely to be significantly lower than a target of 5.5 per cent in the 2008/09 (July-June) fiscal year, the central bank said on Monday. The State Bank of Pakistan said in a report on the first quarter that ended on Sept 30% inflation would also exceed a target of 12 per cent by a wide margin.
The central bank projected GDP growth to range from 3.5 per cent to 4.5 per cent and inflation from 20 per cent to 22 per cent this fiscal year. The fiscal and current account deficits were expected to improve in the year to June 30, it said.
The central bank estimated that the current account deficit would fall to between 6.2 per cent and 6.8 per cent of GDP, compared with 8.4 per cent in the fiscal year of 2007/08. The fiscal deficit was projected to be 4.7 per cent of GDP, compared with 7.4 per cent in the previous year, it said.-SANA