Marketing Environment
...year 2004-05, with the economy expanding
at its fastest clip in two decades. The exceptionally strong growth was underpinned by accommodative
macroeconomic policies, growing domestic demand, renewed confidence of private sector, fiscal discipline and
competitive exchange rates.
The outgoing fiscal year has indeed been an eventful year for Pakistan’s economy. The year has posted several
multiyear “firsts”. Pakistan’s real GDP growth of 8.4 percent in 2004-05 is the fastest pace in two decades; the fifth
time in the country’s history that it exceeded 8 percent growth mark; Pakistan positioned itself as the second fastest
growing economy after China in 2004-05; its per capita income crossed $ 700 mark; Pakistan achieved highest ever
production of cotton (14.6 million bales) and wheat (21.1 million tons) in 2004-05; it has seen the largest ever
expansion of private sector credit in 2004-05; exit from the IMF Programme marks an important milestone; Pakistan
became the fourth sovereign to issue an Islamic Bond (Sukuk), following Malaysia, Qatar and Bahrain; the country’s
public and external debt burden declined to their lowest in decades; current account balance slipped into the red after
posting surpluses for three consecutive years; and inflation at 9.3 percent is the highest in 8 years.
Pakistan is in the midst of an economic upturn. Since 2002-03, the economy has mounted a strong recovery with a
sustained improvement in prospects. During the fiscal year 2004-05, many of its macroeconomic indicators show
marked improvement over last year. The most important achievements of the year include: the fastest pace in real
GDP growth, powered by stellar growth in large-scale manufacturing, a sharp pick up in agriculture, a continuing
robust performance in services, and an extra-ordinary strengthening of consumer demand; a double-digit growth in
per capita...
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