Think tank upbeat on real economy

LAHORE: Pakistan’s real economy is performing well with favourable signs for the GDP growth rate, inflation, consumption, and private sector economic activities, an independent think tank, established to support policy making in Pakistan, said on Tuesday.

“Weak economic fundamentals, however, detract from this positive picture,” Institute for Policy Reforms (IPR) said in its six-month review of the performance of economy.

The IPR report also said the budget deficit for fiscal 2018 would exceed the target, while the current account deficit for the year would end at an unprecedented high.

It added that Pakistan was effectively in a debt trap, where new borrowing is servicing past debt, whereas continuous growth in government revenue for three years running has helped limit the fiscal deficit. According to IPR, actuals for the half year show GDP growth rate will be close to target and above last fiscal.