NewsJune 16, 2020
Pakistan to target 2.3% growth in upcoming budget
The government will target growth of 2.3% in fiscal year 2020-21 as it presents the budget for the upcoming fiscal year on Friday.
The budget is being passed amid a changing economic landscape that would depend mainly on the ability to control the coronavirus pandemic.The GDP growth for 2020-21 is targeted at 2.3 percent with contributions from agriculture (2.9 percent), industry (0.1 percent) and services (2.8 percent), according to a planning commission working paper.
The forecast is higher than the 0.2% contraction in 2020-21 projected by the World Bank earlier in June. The global lender sees growth of negative 2.6% this fiscal year, while the government expects a 0.4% contraction.A recent surge in COVID-19 cases has made economists skeptical about a quick recovery in the South Asian nation. Khan said on Monday that the outbreak was not expected to hit its peak until July or August.
The planning commission paper projects an average inflation rate of 6.5% in 2020-21, a trade deficit of 7.1% of GDP and a current account deficit of 1.6% of GDP. Exports and imports are projected to grow at 1.5% and 1.1%, respectively.Inflation hit a decade-high of 14.56% in January.
A budget strategy paper in March, just before the pandemic hit, had projected growth of 3% in 2020-21.
Courtesy www.dailytimes.com.pk
Back to Pakistanlink Home