DIVERSE views, wide part, on how the economy will fare are being expressed by various stakeholders, but a majority expects the private sector-driven growth of 5pc this fiscal year. However, there is a consensus that economic outlook for calender year 2015 hinges on the improvement of the energy supply and the security situation.

The falling petroleum product prices and possibly cheaper bank credit are expected to cut production costs and yield better margins, which may energise the private sector. The low inflation is expected to increase the real income of the common citizen stuck with static wages. This will supplement the already strong consumer demand in the country, incentivising consumer goods producers to expand their operations and production.

However, no significant improvement is expected in 2015 in the quality of growth, as the government has intends to divert Rs00bn from the development spending to finance new security initiatives. The governmentis using provincial budget surpluses to moderate the high fiscal deficit. And the private sector is too narrowly focused on making their businesses successful, to care for the overall macro impact.