Pakistan’s GDP Growth Forecast Cut to 3.2% by Statistics Office

Pakistan’s economy will probably expand 3.2 percent in the fiscal year through June 2012, lower than a previous forecast of 4 percent, the nation’s statistics office said in a preliminary estimate.

Gross domestic product increased 3 percent in the 2010-2011 financial year, more than an earlier report of 2.4 percent, following a change in the base year for calculating the pace of expansion, the Pakistan Bureau of Statistics also said in a statement released yesterday.

Pakistan’s $200 billion economy has been hampered by blackouts from its worst energy crisis, an insurgency on the Afghan border, elevated inflation and diminished aid flows. The nation’s Supreme Court yesterday convicted Prime Minister Yousuf Raza Gilani of contempt of court, adding to political tensions ahead of general elections due by February.

“Growth will remain subdued this fiscal year,” said Khalid Iqbal Siddiqui, the head of research at Karachi-based United Bank Ltd. “Manufacturing industries are suffering from power and gas shortages, while there are signs that the urban economy dominated by the service sector is performing poorly as well.”

To contact the reporter on this story: Haris Anwar in Islamabad at hanwar2@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net