A United Nations economic survey released in Islamabad Thursday said that Pakistan was in the midst of a strong economic upturn, recording its third straight year of impressive growth in the fiscal year of 2005.

The UN Economic and Social Survey of Asia and the Pacific said that the country's GDP growth of 8.4 percent in 2005 was the highest in the last two decades due to continuity of economic policies, a robust financial sector and strong domestic demand.

Inflation is expected to drop to about 8 percent this year. High growth of exports out-placed by even higher growth of imports, according to the survey.

In 2005, while exports grew at a healthy rate of 16.9 percent, imports increased almost twice at 32.3 percent.

The imports should improve the productive capacity of economy and increase manufacturing activities and exports, according to the report.

It said that the unemployment and poverty rates in the country had gone down in the recent years and the government took several measures to ease inflationary pressure.

Dr. Sarfraz Khan Qureshi, Chief Executive of Innovative Development Strategies at a press conference said that the government must continue to strive for development through a combination of macroeconomics prudence and strong investment in physical, social and human assets so that the pace of progress could be maintained and its fruits shared more equitably.

Source: Xinhua