Abb Takk News

Pakistan’s Economy Gains Momentum In 2020/21: SBP

KARACHI: The Pakistan economy has made an encouraging recovery during the last fiscal year but certain structural vulnerabilities still require the government’s attention, the State Bank of Pakistan (SBP) reported in its third quarterly report issued on Friday.

In the report titled, The State of Pakistan’s Economy for the fiscal year 2020/21, the central bank said, in the agriculture sector, the secular decline in cotton production needs to be addressed. Timely availability of pest-resistant seed varieties and further support from the agriculture extension departments, particularly to promote the adoption of climate-smart farming practices, could enable better outcomes, it added.

In the external sector, the State Bank of Pakistan said the widening of the merchandise deficit needs to be contained to a sustainable level. Greater self-sufficiency in agriculture, through the adoption of better farming and crop management practices, and maintenance of adequate stocks can reduce the need to import commodities such as wheat, sugarcane and cotton to bridge domestic shortfalls or counter temporary price pressures, it added.