Pakistan's economy to grow by 7.1%

Pakistan’s economy to grow by 7.1%

Pakistan's economy is expected to grow by 7.1% in the fiscal year ending June 2005, despite inflation, the Central Bank said. The strongest support for growth is attributed to the improvements in services sector. Pakistan earlier set a 6.6% growth target, but leading indicators mark that the services sector, which accounts for 50% of GDP (Gross Domestic Product), will perform more strongly. On the other hand, central bank highlighted that higher inflation and aggravating trade balance due to high international commodity prices could cause risks for economic growth. The latest forecasts indicate that inflation could surpass 7.2% in the mentioned period.