Central bank clarifies ambiguities over GDP growth rate numbers

KARACHI: The State Bank of Pakistan (SBP) has released on Sunday a clarification on the media debate over GDP growth estimations being cited by the National Accounts Committee (NAC) noting underway strong economic recovery already highlighted in its quarterly reports, ARY News reported.

In a set of tweets published by the central bank via its official handle say that the provisional estimate for the financial year 2021 growth of 3.94 per cent that NAC released, reflects the strong economic recovery underway already anticipated and posted in its reports.

1/5 SBP Clarification: The provisional estimate for FY21 growth of 3.94 percent released by the National Accounts Committee (NAC) yesterday reflects the strong economic recovery underway since the beginning of this fiscal year,

— SBP (@StateBank_Pak) May 22, 2021

“SBP had raised its own growth forecast in March on the basis of buoyant economic activity reflected in different high-frequency data.”

2/5 which has been highlighted in recent monetary policy statements and quarterly reports of the SBP.
SBP had raised its own growth forecast in March on the basis of buoyant economic activity reflected in different high frequency data.

— SBP (@StateBank_Pak) May 22, 2021

“This was done in an appropriately conservative manner while noting upside risks to growth.”

The central bank said that it had anticipated the upside potential of the economy given the numbers but was conservative in posting them. However as the potential really materialized, the NAC’s forecast is substantiated.

“Data received since then, and discussed in the NAC, suggest these upside risks have materialized.”

It said the estimate released is carried out in consultations with SBP and the numbers are unanimously approved.

“The estimate released was approved unanimously and has the full backing of the SBP.”

READ ALSO: Shaukat Tarin predicts 5pc growth rate during outgoing year

Pertinent to note that federal finance minister for Shaukat Tarin said the country dealt with COVID-19 situation in a better way and predicted that the growth rate would move to six percent in the next fiscal year.

“Growth rate is projected at five pc this year and would move further upward to six percent during the next fiscal year,” he said while addressing a virtual press conference and added that the government has developed short and long-term plans to achieve the target.