Pakistan said on Friday its economy was on course to grow 3.94 per cent in the financial year 2020-2021 that ends in June; almost double the International Monetary Fund (IMF) and World Bank’s projections; as it recovers from the worst of the pandemic.
The planning ministry said its provisional estimate – up from Pakistan’s last forecast of 3 per cent – was based on data for the year so far on growth in the agricultural; industrial and services sectors at 2.77 per cent, 3.57 per cent, and 4.43 per cent respectively.
Minister of Planning Asad Umar Statement about GDP:
“This growth in a period in which Covid-19 placed a huge challenge to the economy is extremely gratifying;” minister for planning Asad Umar tweeted. On Friday, the ministry also revised down GDP growth for the financial year that ended on June 30, 2020 to -0.47 per cent; from -0.38 per cent.
Due to a combination of gdp growth and strengthening of Pak rupee against the US $, per capita of Pakistan jumped by 13.4% this year from $1361 to $1543. Total GDP increase from $263 billion to $296 billion an increase of $33 billion which is the highest ever
increase
in any year
— Asad Umar (@Asad_Umar) May 21, 2021
The IMF has estimated GDP for 2020-21 growing 1.5 per cent and the World Bank estimates growth of 1.3 per cent.
Prime Minister Imran Khan’s government:
Prime Minister Imran Khan’s government is weeks away from presenting its annual budget; which faces tough challenges on the fiscal deficit and an ambitious revenue collection target.
National Accounts Committee has finalized GDP growth estimate & GDP growth is estimated at 3.94%.This reflects the success of our govt’s economic policies while managing COVID 19 pandemic. Our V-shaped recovery is balanced between 3 major sectors: agriculture, industry & services
— Imran Khan (@ImranKhanPTI) May 21, 2021
Due to a combination of GDP growth and strengthening of the Pakistani rupee against the dollar; Pakistan’s per capita income jumped by 13.4 per cent this year from $1,361 to $1,543; Umar said. Total GDP increased from $263 billion to $296 billion; the highest increase recorded in any year; he said.
The South Asian nation of 220 million people got into a $6 billion IMF stabilisation programme; in 2019 months after Khan’s government delayed it. Pakistan’s Finance Minister Shaukat Tarin; has said the country is in talks with the IMF to seek easing of “tough conditions” on the loan.
GDP growth was 5.8 per cent before Khan took power in 2018; with inflation below 4 per cent, which was recorded in double digit last month. Some $2.5 billion of borrowing in international bond markets and historically high remittances have recently given some breathing space.