KARACHI: The State Bank of Pakistan (SBP) on Friday released its first quarterly report on the economy of Pakistan.
According to the report, SBP has projected growth in the manufacturing sector in the remaining part of the fiscal year due to supporting policies and encouraging outlook.
A good response is expected from the automobile, sugar, pharmaceuticals and construction sectors.
The report states that fiscal deficit rose because of lower than expected tax collection in the first quarter. SBP expects fiscal deficit to rise to 5 per cent of GDP in FY17 as against the target of 3.8 per cent.
SBP is also expecting export targets for FY17 to be missed by $2.2 billion from the target of $24.7 billion.
The GDP growth rate is projected to be between 5 to 6 per cent in FY17 against the target of 5.7 per cent.
Remittances will also remain stagnant in FY17 around last year’s level of $20.5 billion.
According to SBP, inflation will range between 4.5 per cent to 5.5 per cent in FY17 against the target of 6 per cent.