Growth and inflation rose while the budget and current account deficit fell in the year ending 30 June 1994, figures published in the State Bank of Pakistan (central bank) annual report show.

Gross domestic product (GDP) grew by 4 per cent in the year. This compares with 2.3 per cent in 1992-93, when GDP was Rs 1.4 million million ($44,411 million), according to the Washington monthly International Financial Statistics.

The budget deficit fell to 5.8 per cent of GDP from 8 per cent in the previous 12 months. Total government expenditure fell to 23.7 per cent of GDP in 1993-94 from 26.2 per cent a year earlier. Net government borrowing fell to Rs 18,000 million ($588.2 million) from Rs 73,000 million ($2,385.6 million) in 1992-93. Government revenues grew by about Rs 38,800 million ($1,268 million) because of higher petrol, electricity and gas prices and action to broaden the scope of sales taxes.

The trade deficit was reduced by 45 per cent to $1,800 million. Imports fell by 14.9 per cent and exports stagnated. The current account deficit fell by 55 per cent to $1,500 million. Foreign exchange reserves increased by 500 per cent to $2,305 million.

Inflation accelerated after falling slightly in 1992-93. The consumer price index rose by 11.2 per cent in 1993-94.

The government aims to raise growth to 6.9 per cent, reduce inflation to 7 per cent and build up foreign exchange reserves to $555 million in 1994-95.