Pakistan State Bank says economic growth to slow

Pakistan's economic growth is expected to fall to between 3.5 per cent and 4.5 per cent this fiscal year, the central bank said Saturday, slowed by domestic turmoil and the global economic crisis. The State Bank of Pakistan report also forecast the rate of inflation would range between 20 and 22 per cent for the year to June 30 2009. The projected growth rate is in line with forecasts from the International Monetary Fund, which last month granted Pakistan 7.6 billion dollars in credit in its first rescue in Asia since the global financial crisis began. The IMF said that global economic turmoil, higher oil and food prices and a worsening internal security situation meant Pakistan had suffered from ‘a large increase in the fiscal deficit ... rising inflation and a sharp decline in international reserves.’