- CNTV English - CCTV News

Homepage > News > Biz >

Floods, oil prices push Pakistan growth rate down

06-03-2011 08:48 BJT

ISLAMABAD, June 3 (Xinhua) -- The devastating floods, increase in international oil prices and security situation in Pakistan had been the three main factors that hit the country's economy and subsequently resulted in slowdown in growth rate during the current fiscal year 2010-11 ending on June 30, Pakistani finance minister said Thursday.

Addressing a press conference at the launching ceremony of economic survey, a document released ahead of the annual budget, Abdul Hafeez Shaikh said that despite these challenges, the growth rate stayed positive.

The GDP for year 2010-11 was fixed to grow at 4.5 percent, however due to the devastating floods that hit the economy badly, the growth rate reduced to 2.4 percent, Shaikh told the news conference.

Shaikh said that the exports have witnessed growth of 28 percent by increasing from 18.8 billion U.S. dollars last year to 20.2 billion during July-April (2010-11). He said that the export figures are expected to cross the 24 billion figure this year.

The remittances also witnessed a considerable growth during July-April (2010-11) by growing from 7.3 billion dollars during the same period of last year to 9.1 billion.

He said a major setback to economy was done by the floods of 2010 that affected about 1.6 million families having 20 million members besides causing damages to infrastructure, agriculture and other properties worth 10 billion dollars.

The minister said security situation was also taking toll on economy as business activities in some areas have curtailed while the name of the country is also being defamed abroad that causes decline in investments.

He said that the third major challenges that the economy faced during the outgoing fiscal year was the increase in international oil prices which have also affected the performance of the industrial and manufacturing sector.

The fiscal deficit for the year 2010-11 was expected to remain 4 percent of GDP, however, due to unfavorable circumstance, it grew to 5.1 percent, he said.

He said that the investment to GDP ratio was recorded at 13.4 percent during the year against 15.4 percent last year adding that security and high input rates were the main hurdles in investments.

Editor:Yang Jie |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program