Steady Growth But Beware Downside Risks Our immediate economic outlook for Pakistan remains broadly unchanged on our last quarterly shipping report. Despite ongoing structural problems such as the long-running energy crisis, a poor security situation and poor fiscal management, the country has been seeing a gradual improvement in activity levels, largely driven by a supportive monetary policy and an improvement in private sector credit. We continue to expect GDP growth of 4% in fiscal year (FY) 2012/13 (July to June), which would mark the strongest growth in six years, albeit nowhere near the mid-to-high single-digit growth rates achieved prior to …
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