Daily Times

The provisional growth in the gross domestic product (GDP) for the financial year 2021-22 (FY22) is estimated at 5.97 percent against the growth of 5.74 percent in FY 2020-21.

The National Accounts Committee (NAC) said this in a meeting on Wednesday. The meeting was held under the chairmanship of secretary Planning Commission.

Based on the initial estimates, the services sector is likely to increase by 6.19 percent in the current fiscal year against 6 percent in previous fiscal year. The services sector is expected to rebound with growing economic activity amid improved vaccination rollout. This growth target is supported by 4.6 percent growth in the wholesale and retail trade, 4.7 percent in transport, storage, and communication, 5.2 percent in finance and insurance, 4.0 percent in housing, 4.5 percent in general government services, and five percent in other private services.

The industrial sector may grow over 7.19 percent in the current fiscal year due to back of almost double-than-targeted growth in the large scale manufacturing (LSM) output. The industrial sector is expected to grow rapidly due to Large Scale Manufacturing, the construction sector, and mining and quarrying. Moreover, a collateral-free credit guarantee scheme for small and mid-size enterprises (SME) will underpin the overall manufacturing sector growth prospects.

The agriculture sector is estimated to see a growth of 4.40 percent in the ongoing fiscal year against 3.48 percent in 2020-21. The projected agriculture growth is mainly contingent upon the revival of cotton production, the consistent availability of water, certified seeds, fertilizers, pesticides, and agriculture credit facilities. Several projects and programs are intended to improve the food and agriculture sector.

Meanwhile, the economy is likely to grow to Rs38,755 billion in the current fiscal year against Rs36,573 billion last year.

The International Monetary Fund (IMF) and the World Bank have been indicating that Pakistan’s economy is likely to grow by around 5 percent in the current fiscal year. The Imran Khan-led PTI government had set a target of 4.8 percent GDP growth, including 3.5 percent agricultural growth, 6 percent industrial growth, and 4.7 percent growth rates for the service sector for the current fiscal year.

These figures will be presented in the upcoming meeting of the Annual Plan Coordination Committee (APCC) under the chairmanship of the deputy chairman Planning Commission and attended by the provincial ministers for planning.

The APCC will also propose the target of GDP growth, the current account, and the development budget of the federal and provincial governments for the next year, besides the approval of the current fiscal year.