Int'l rating agencies optimistic about Pakistan's economic performance Aziz

ISLAMABAD:  Planning Commission Deputy Chairman Sartaj Aziz on Tuesday said the international ratings agencies are optimistic about Pakistan’s economic performance and predicting the country to emerge as one of the fast growing economies in the world in upcoming years.

The deputy chairman Planning Commission expressed these views while addressing a conference on “Redefining prosperity paths in changing global economy: opportunities and challenges for Pakistan” organised the by Pakistan Society of Development Economists (PSDE).

 Aziz said that the real GDP growth was 5.3% in 2016-17 which is the highest in last nine years due to improvement in energy supply along with security situation, the two key bottlenecks which were holding back the performance of the economy.

Pakistan’s economy has seen noticeable turnaround in last four years as a result of cumulative impact of macroeconomic and structural reform program.

He also said that Pakistan successfully executed $1 billion five years Sukuk and $1.5 billion ten years Eurobond transactions at a profit rate of 5.625% and 6.875% respectively and this reflects the confidence of global investors in Pakistan’s economy.

 Aziz said it is important to carefully analyze the dramatic changes that are taking place in the world economy as economic dynamism has shifted from advanced economies to emerging markets.

Quoting example of Chinese economy, he said China is re-balancing its economy from manufacturing to services, investments to consumption, from exports to domestic services and this means slower but more sustainable growth path.

Moreover, the major economic powers including the US and the European Union are facing structural issues of aging populations, growing debts, weak financial institutions and global financial crisis which has brought about a shift in policies that will allow a greater role to the public sector in steering the national economies.

The deputy chairman said due to rapid transformation of the global economic order, it is necessary for Pakistan to reposition itself in the world economy and Pakistan’s outlook for economic growth is favorable due to the CPEC investments, improved availability of energy, and growth supporting-supporting structural reforms.