Pakistan's economic recovery continues: central bank

ISLAMABAD, Aug. 13 (Xinhua) -- Pakistan's economic recovery continued during the first half of the 2021-2022 fiscal year ending in June, the State Bank of Pakistan (SBP) has said in a report.

From July to December of 2021, the large-scale manufacturing in the country exhibited broad-based expansion, exports grew buoyant alongside growth in tax collection of the Federal Board of Revenue, and Kharif (monsoon sowing season in Pakistan) crops recorded higher production, the SBP said in its half-year report released on Friday.

However, amid multi-year high global commodity prices, rising inflation and current account deficit posed a challenge as the year progressed, the SBP said, adding that these pressures necessitated monetary tightening amidst other regulatory measures to moderate demand.

The report stated that improved COVID conditions, alongside the vigorous vaccination drive, paved the way for largely uninterrupted economic activities.

The fiscal measures, including tax cuts on certain sectors and expansion in federal and provincial development spending, coupled with higher non-interest current expenditures supplemented Pakistan's economic growth, it added.

The report said that the private sector credit grew nearly fourfold during this period on a year-on-year basis.

This was mainly on the back of working capital requirements that rose due to increased domestic demand, higher exports, as well as the global commodity price hike, and an ensuing jump in domestic wholesale prices in the first half of the fiscal year, according to the report.