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ISLAMABAD, Jan 30 (Reuters) - Pakistan gross domestic
product grew 3.7 percent during the 2011/12 financial year,
compared with 3 percent a year earlier, and is likely to post
similar growth in the current year, the State Bank of Pakistan
said on Wednesday.
The central bank said growth was more broad-based and evenly
distributed across agriculture, industry and the services
sector, despite chronic energy shortages.
"We are confident that milder flooding this year and the
underlying factors that allowed for 3.7 percent growth in FY12
will largely remain in play," the bank said in a report.
Pakistan's financial year runs from July 1.
The central bank said that food prices had remained
relatively stable last financial year, bringing down overall
inflation to 11.1 percent - better than the 12.0 percent
"It was this easing that allowed the central bank to reduce
the policy rate by 200 basis points during the year; this was
done to partially revive private sector borrowing and encourage
banks to improve their intermediation between private savers and
borrowers," the report said.
It stressed the need for structural reforms in the energy
sector, public sector enterprises and public finances in a
country which still owes the International Monetary Fund $7
billion and badly needs to improve tax collection.
"This, together with a more balanced deficit financing mix
in FY13, would ease a great deal of pressure from domestic
sources of financing - especially the commercial banks," it
(Reporting by Nick Macfie; Editing by Sanjeev Miglani)