The economy grew at an average rate of 5-6 percent in real GDP terms between 2004 and 2008, leading to an improvement in balance of payments position and record international reserves adequate for 9-11 months of import cover. However, there are challenges we still have to face: 1.
A significant decline in commodity prices can have an adverse impact on the economy through a fall in producer incomes, increase fiscal deficit, lower investments and increase public borrowing. Decline in incomes can lead to an increase in non performing loans in those sectors and undermine soundness of the financial system;  2.