The economic performance of recent government has not been satisfactory in the fiscal year 2022-23. In the Annual report of the State Bank of Pakistan, titled, “State of the economy for the fiscal year FY22”, the bank says, “International experience has repeatedly shown that countries that prioritize growth at the expense of price and financial stability are not able to sustain growth and have repeated boom-bust cycles – rapid economic growth followed by a financial crisis.”
The government could not achieve the growth target during the outgoing financial and it is expected that the growth rate will be lower than 3-4 percent.
The poor economic condition caused big number of people, put away from the jobs and it seems that this is not going to stop.
The textile sector, exporters and Importers which play a vital role in bring the growth rate high are facing a number of issues including non-opening of Letter of Credit (LCs).
The rising trend of inflation which is 25 percent at the moment has disturbed all the segments of society, particularly the common men is finding no way to survive.
SBP says that price stability is a necessary condition for sustained growth and development and the international experience shows that the countries where price is a primary objective tend to have lower inflation and less volatility in both inflation and growth. But the government could not achieve any of these objectives despite sacrificing the growth.
The central bank says that in forecasting the inflation, there are many assumptions which have to be made and continually updated as more information is received.
The report says, “In Pakistan, the coverage and timelines of information needs improvement and there are often large revisions to ‘annual’ GDP growth estimates relative