7 May 2010
According to the UN Economic Survey for Asia and Pacific 2010 released yesterday, Pakistan’s GDP growth fell from 41% in 2008 to 2.0% in 2009. This is expected to rise to 3.2% for 2010.
The UN survey reveals that spiraling inflation rose precipitously from 12% in 2008 to a staggering 20.8% in 2009. This was mainly due to the support price of wheat and the phasing out of petroleum subsidies. However, the government is implementing certain measures to tame inflation by improving the supply of essential commodities.
The survey also noted that gross investment fell from 21.8% in 2008 to 19.9% in 2009 while the projection for 2010 is 18.5%.
Large scale manufacturing suffered the greatest decline in international demand. This was exacerbated by the unceasing power shortages.
The impact of the global financial crisis, the deteriorating security situation and the ongoing energy crisis were identifies as the key causes for Pakistan’s slow economic growth.