Fitch Predicts Pakistan Economy to Grow in FY22
The rating agency said the domestic investments will grow in the fiscal year due to accommodative monetary policy and refinance facility
The UK-based research firm, Fitch Ratings, has predicted that the economy of Pakistan is to grow by 4.2% in the fiscal year 2021-2022 (FY22).
The report said that the vaccination has picked up pace in Pakistan which has reduced the possibility of extended lockdowns.
“We also expect the economy to be buoyed by accommodative monetary and fiscal stances; public spending. A more assured economic outlook will bode well for consumption and investments, bolstering economic growth”, the firm said.
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It has been predicted that private consumption in FY22 will rise by 3.6 % compared with 3.4 % last year.
The growth in remittances by overseas Pakistanis is also expected to remain strong due to the economic growth in Gulf countries.
Fitch Ratings said the domestic investments will grow in the fiscal year due to accommodative monetary policy and refinance facility.
The government has committed to procure $1.1 billion worth of covid-19 vaccines.
Hence, Fitch Ratings said the imports of Pakistan during FY22 are to rebound strongly than exports due to higher demand for vaccines and elevated global oil prices.
The countries moving to ease in lockdowns will see an increase in demand for consumer products.
Therefore, the firm said the export growth will be bolstered by robust external demand amid recoveries particularly from trading partners such as the US, China, and the UK.
