KARACHI: Governor State Bank of Pakistan (SBP) Reza Baqir has expressed confidence that the country’s economy would grow by 3% during the current fiscal year 2020-21 despite the obstacles created by COVID-19 third wave.
“We are entering the third COVID-19 wave with strong economic indicators,” said Baqir, while addressing an event held at the Pakistan Stock Exchange (PSX) today (Monday), with SBP Governor ringing the traditional bell.
He claimed that Pakistan entered the third wave with improved economic indicators compared to weaker ones at the time when the first wave hit the country. “We will tackle the third wave successfully,” the SBP Governor added.
Shedding light on economic indicators, Baqir said workers’ remittances remained strong at above $2 billion for the 10th consecutive month in March. He also appreciated Overseas Pakistanis “for the unparallel growth in the remittances.
“The large scale manufacturing (LSM) sector posted a growth of 9 percent in January compared to negative growth of 5.7% in the same month last year when the first wave hit the country, he added.
He further informed that the sales of cars, cement, steel, and fast-moving consumer goods (FMCGs) remained robust compared to sluggish sales in the first wave of COVID-19.
“The fiscal and monetary policies coupled with stimulus are expected to help the economy grow this year compared to a contraction witnessed during the previous fiscal year,” the Governor added.
He added that the central bank remained available to lend support to the stock market. “Central bank is working on regulations to develop the secondary debt market at the Pakistan Stock Exchange,” he said.
