Pakistan's economic growth rate is expected to be three percent this fiscal year, said Governor State Bank of Pakistan (SBP) Dr. Reza Baqir.

Governor SBP Dr. Reza Baqir said that the economy is moving in the right direction, and will perform better in the years to come, next fiscal year the economy will grow by four percent.

Talking to Khaleej Times, the governor said that despite the challenging environment of the world, Pakistan's economy has the potential to move forward. SBP Governor said that Pakistan's economy has the potential to grow at a high rate.

He said that despite coronavirus pandemic, economic indicators are strong this year.

“We have strong economic indicators this year despite the Covid-19 pandemic challenges and this is a good omen for the economy. The government ensures more than Rs2 trillion stimulus to steer the economy out of Covid crisis by supporting the businesses through much-needed liquidity and funds distribution at grass root level,” Dr Baqir said.

Baqir informed that the central bank offered Rs450 billion liquidity under its Temporary Economic Refinance Facility (TERF) to the private sector to absorb the coronavirus shock, while another Rs240 billion was provided as working capital to avoid layoffs and job losses.

“The central bank also offered a Rs900 billion cushion to banks to ensure relief to distress businesses in deferment and restructuring of principal payment and mark-up charges. These are some of the measures which helped the economy to bounce back quickly to meet global demand after the lockdown period,” Dr Baqir said.