Pakistan GDP Growth Slows to 2 Percent in June Quarter
Pakistan reported a 2 percent GDP growth rate for the quarter ending June, missing economist forecasts amid rising energy costs and Middle East instability.
The Pakistan Bureau of Statistics reported that the country's gross domestic product grew by 2 percent in the three months ended June. This figure represents a significant slowdown from the 4.42 percent growth recorded in the January-March period and fell short of the 3.5 percent expansion predicted by economists in a Bloomberg survey.
Economic stabilization has been supported by loans from the International Monetary Fund and credit-rating upgrades from Moody's Ratings in October and S&P Global Ratings in July. To bolster its financial position, Pakistan increased its foreign-exchange reserves to $21.4 billion and raised $3 billion through high-yield bond sales.
Despite these improvements, the recovery remains fragile. Conflict in the Middle East threatens to increase inflation and energy costs, leaving the economy vulnerable to oil-price shocks. Because Pakistan relies heavily on imported energy, these external pressures could strain the national currency and deplete foreign-exchange reserves.
