Pakistan had 8.4% GDP growth in FY2005 (ended 30 June 2005) and it was the highest in the last two decades. However, ADB has predicted a growth rate of 6.5% for FY 2006 and 7.3% for FY 2007. Two factors are behind this slowdown of the Pakistani economy- slow growth in agriculture production and the impact of the devastating earthquake that rocked on 8 October, 2005. The rising price of oil is another cause of concern for the Pakistani economy. ADB has viewed that Pakistani economy has the potential to have a healthy growth in the next few years but the success of Pakistani economy depends on the economic management of the government.
The destruction caused by the earthquake on 8 October 2005 was massive. 73,000 people died, 70,000 were injured and 2.8 million people became homeless. Naturally, devastation of such grand scale was a logistic nightmare for the administration and reconstruction needed a lot of money. The report has praised the ongoing privatization policy of the government and informed that the coverage of mobile phone service has doubled in the last 3 years. To read the discussion of ADB just visit the link.
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