Open AccessKey Challenges in Economic Management of Pakistan
Author(s) -
Taufiq A. Hussain
Publication year - 2006
Publication title -
the lahore journal of economics
Language(s) - English
Resource type - Journals
eISSN - 1811-5446
pISSN - 1811-5438
DOI - 10.35536/lje.2006.v11.isp.a1
Subject(s) - economics , current account , commodity , unemployment , offset (computer science) , investment (military) , real gross domestic product , economic slowdown , macroeconomics , monetary economics , international economics , market economy , exchange rate , politics , political science , law , computer science , programming language
This paper points out that GDP growth is fundamentally on trackalthough a little below the expected 7% target owing to commodity sectorweaknesses. The rising trend in unemployment has been reversed over2002-04. It is expected that longer trend growth over the decade will beover 6%. However, there are certain macroeconomic imbalances, thecurrent account deficit, the widening savings-investment gap andinflationary pressures, that need to be managed.Pakistan’s economy continues to remain on a high-growth trajectoryduring the current fiscal year, though the real GDP growth rate for the yearseems likely to be lower than the 7 percent target. The expectation of theslowdown, relative to the FY06 annual target, owes principally to the(estimated) weakness in the commodity producing sectors of the economy,the impact of which will be partially offset by an anticipated above-targetperformance of the services sector.