KARACHI (January 13, 2010): The real gross domestic product (GDP) growth in the current (2009-10) fiscal year (FY10) is likely to be around the annual target of 3.3 percent. However, inflation, import, export and fiscal deficit targets are difficult to achieve during the current fiscal year.

KARACHI (January 13, 2010): Whereas most of the key indicators continue to mark positive trend in initial months of the current fiscal year, the soaring fiscal imbalance, poor tax growth and greater quasi-fiscal activities have increased the risks to macroeconomic stability. This warning came from the State Bank of Pakistan (SBP) in its first quarterly report on 'The State of Pakistan's Economy' during fiscal year 2010.

KARACHI (January 13, 2010): The State Bank of Pakistan on Tuesday said that quarterly targets of IMF's Stand-By Arrangements (SBA) may not be achieved due to huge expenditures on defence and rehabilitation of internally displaced people. According to SBP's First Quarterly Report on the State of the Economy for FY10, the government would try to achieve the quarterly SBA targets for the budget deficit.

KARACHI (January 13, 2010): Inflationary pressure is again growing in the economy, and continued fiscal stimulus could complement an expected rise in imported inflation, raising the risk of resurgence in domestic prices, says State Bank's First Quarterly Report. According to the Report, released on Tuesday, Consumer Price Index inflation is likely to remain higher than the annual target of 9.0 percent for the year.

KARACHI (January 13, 2010): The State Bank of Pakistan on Tuesday asked the government to settle billions of rupees commodity financing on priory basis to avert another circular debt crisis. According to the SBP's first quarterly report on economy, increasing level of contingent liabilities of the government is another challenge in public finance, which should be resolved on priority basis.

KARACHI (January 13, 2010): The State Bank of Pakistan has said that the Seventh National Finance Commission (NFC) Award has introduced significant changes in resource distribution mechanism, to the satisfaction of all units of the federation. According to SBP's first quarterly report on country's economy under the award, the federal government agreed to increase the share of provinces in divisible poll to 56.0 percent in the first year of NFC and to 57.5 percent in the remaining years of the award from existing level of 47.5 percent.

KARACHI (January 13, 2010): The State Bank of Pakistan (SBP) has said that the performance of FY10 kharif crops has been significantly weaker than in the corresponding period of last year. According to SBP's first quarterly report on State of Economy, weaker crops were due to water shortages at sowing times and, more importantly, farmers' disappointment with prices received in the previous kharif season, adding that "latter is particularly evident in the decline in area under rice and sugarcane cultivation".

TEXT (January 13, 2010): Executive Summary: Real Sector - Agriculture: Initial estimates suggest that the performance of FY10 kharif crops has been significantly weaker than in the corresponding period last year. This was due to water shortages at sowing times and, more importantly, farmers' disappointment with prices received in the previous kharif season.