IMF says CPEC rise in private sector lending boosting Pakistan’s economic growth

[Salman]

Lahore: International Monetary Fund (IMF) on Tuesday released its World Economic Outlook (WEO) report and said Pakistan’s economic prospects had shown improvement and economy’s growth rate was forecast to touch 5.3pc during 2017.

It added, that due to benefits accrued from China-Pakistan Economic Corridor (CPEC) and growth in lending to private sector had contributed to these improved economic prospects for the country.

It also predicted that Pakistan’s economy will grow at a rate of 5.6pc in 2017, as stated in IMF’s latest World Economic Outlook (WEO) report.

WEO report said Pakistan, North Africa, Afghanistan and Commonwealth of Independent States were experiencing turbulence due to ongoing inflationary pressures, exchange-rate depreciations, increases in value added taxes and also removal of subsidies.

It further cited that Middle East, Pakistan, North Africa and Afghanistan’s growth collectively will contract significantly during 2017 to 2.6pc from 5pc during 2016. This has been attributed to a slowdown in Iran’s economy, after a sharp spike in growth during 2016, due to cuts in oil production in oil exports as per a extended OPEC agreement till March 2018.

Unemployment ratio is forecast to rise to 6.1pc for 2017 compared to 6pc in 2017. IMF’s WEO report has further predicted consumer prices to clock at 4.1 for 2017 and 4.8pc in 2018, respectively.

The report further outlined that global economic output would rise to 3.6pc for 2017 and 3.7pc in 2017, but well above the growth experienced during 2016, said IMF.