PAKISTAN SAYS GOOD ECONOMIC GROWTH CONTINUES
Pakistan says its economy has continued
its recent outstanding performance during the financial year
1986/87 ending on June 30 but areas like balance of payments,
investments and energy were causing concern.
    GDP grew in line with the average growth rate since 1980
and the inflation rate was the lowest since 1969/70, according
to a government economic survey.
     The reform of economic regulation had gathered momentum
and there was an impressive performance in a five point
government program for rural uplift, education and poverty
alleviation, said the survey.
    Ministry Economic Adviser Qazi Alimullah told a news
conference that before recent unseasonal rains and hailstorms
damaged the wheat crop, GDP growth was calculated at 7.04 pct
compared to 7.25 pct in 1985/86.He said the figure might now
slide down a little to around 6.8 or 6.9 pct.
    The survey said monetary expansion was estimated to be nine
pct to date but might rise to around 12 pct by the year-end.
    Alimullah said exports rose 18 pct to 3.5 billion dlrs from
2.9 billion dlrs in 1985/86. But the at the same time, home
remittances by Pakistanis abroad dropped to 2.3 billion dlrs
from the 1985/86 level of 2.595 billion.
    More exports and an improvement in the balance of payments
situation will be required to overcome this declining trend in
home remittances, he said.
    The survey said the trade deficit was expected to fall to
2.4 billion dlrs from three billion dlrs in 1985/86 because of
the boost in exports.
    He said national investment continued to be small because
of a poor rate of savings, about 14 pct of GDP. He said more
savings were required to maintain or possibly step up the
present growth rate and to finance the country's seventh
five-year development plan to be launched in July 1988.
 REUTER
