GDP growth remains high at 4.7pc

Amanullah Khan

Karachi—The GDP growth in Pakistan remains high at 4.7 per cent, in FY-2016, but with the increase of global oil prices we witness a shift in respondents’ faith in the country’s economy. The perception that the country is in an economic recession has increased from 69 per cent (Q1) to 72 per cent (Q2). Pakistan’s consumer confidence remains consistent in second quarter, at an index of 104, according to the Nielsen Global Survey of Consumer Confidence and Spending Intentions.
The index has been rising since 2008, and had reached its highest level during the first quarter of 2016. Overall, Pakistan’s economy seems to have had a slight impact on consumer confidence this quarter. Although the index remains unchanged from the previous quarter, we can see a shift in respondents’ sentiment towards the economy. Pakistan was a beneficiary of the low global oil prices, being energy-starved, and relying heavily on imported oil.
Softer oil prices will pose a threat to the government earnings, which collects substantial revenue from customs duties and import taxes. Notwithstanding, softer oil prices and resultant subdued inflation, coupled with higher foreign exchange reserves, are expected to bolster the macroeconomic outlook, said Mustafa Moosajee, Managing Director, Nielsen Pakistan.

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