The Central Bank of Pakistan estimates that the country’s economy will grow by 5% in the current fiscal year (FY2022).

Pakistan’s Central Bank Governor Reza Baqir said in a video message that Monetary Policy Committee stated that economic growth is expected to rise by 5 percent in fiscal year 2021-2022, despite a large current account (CAD) deficit and depreciating currency.

The governor said the pace of the domestic economic recovery grew faster than expected. This strong rebound in domestic demand, coupled with higher international commodity prices, led to a sharp increase in imports and depreciation of Rupee.

SBP Governor has made it clear that economic growth will come despite Rupee Depreciation unlike Past. This means that Rupee will continue depreciating as economy grows.

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