Pakistan sets 4.8% growth target for next fiscal year : Asad Umar

The Annual Plan Coordination Committee (APCC) has approved the federal Public Sector Development Programme (PSDP). An outlay of Rs900 billion besides endorsing the Gross Domestic Product (GDP) growth rate target of 4.8 percent. For the upcoming fiscal year 2021-22, Minister for Planning, Development and Special Initiatives Asad Umar said.

“The size of federal PSDP has increased by 40 percent from Rs650 billion to Rs900 billion next year. Which are the highest expenditures in one year in the history of Pakistan,” he said. While addressing a press conference in Islamabad on Friday.

He said this increase in the PSDP would crowd in more investment that would contribute to the 0.25 percent increase. In the country’s GDP growth.

Recalling the higher growth of 5.4 percent during the previous government. The minister said that during that year, Pakistan’s current account deficit (CAD) stood at around $20 billion or 6 percent of the total GDP.

On contrary, he said during the current fiscal year the current account would post a minor surplus while next year the CAD would stand at $2.3 billion or 0.7 percent of the GDP.

Economic Growth of Pakistan

“The economy of Pakistan can bear the current account deficit of up to 2 percent of GDP,” he said.

Asad Umar said the current year’s GDP growth of 3.94% was based on productive sectors, however, during the previous government, the growth rate was consumption-driven which was not a healthy sign for any economy.

He said the Gross National Product (GNP) posted a record increase of 6.5 percent. As compared to the previous year which was the highest in 16 years.

He said the APCC in its meeting today also approved the annual plan for the upcoming fiscal year. The investment to GDP ratio is set at 16 percent.

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Similarly, he said the remittances which would reach $29.1 billion by end of the current year will increase to $31.2 billion by the next fiscal year.