Islamabad, June 11, 2019:The Gross Domestic Product (GDP) is expected to pick up and grow at 4 percent during the upcoming fiscal year 2019-20, with contribution of 3.5 percent from agriculture, 2.3 percent from Industry and 4.8 percent from services sector, according to Annual Plan 2019-20 released by the government here Tuesday.
According to the plan, the growth targets are subject to risks of extreme weather fluctuations, interruptions in envisaged reforms and non-aligned monetary and fiscal policies.
However, the targets are attainable with the revived agriculture sector, growth in the industrial sector and pick up in private sector credit and expected competition and spillover effects of projects under China Pakistan Economic Corridor (CPEC).
Meanwhile, in the backdrop of highest-ever macroeconomic imbalances and resultant adjustment drive, the economic growth was anticipated to decelerate during the current fiscal year (2018-19), it said adding that the growth decelerated from 5.5 percent in 2017-18 to 3.3 percent in 2018-19.
Two important commodity producing sectors including agriculture and manufacturing witnessed negative growth due to certain reason.
The Annual Plan targets workers’ remittances to reach the level of US$24 billion during the year 2019-20 while the current account deficit is projected to be contained at 3 percent of GDP.
On fiscal, monitory and Capital Market development side, the government would initiate various reforms for fiscal consolidation during 2019-20, it said adding that the State Bank of Pakistan has started tight monetary policy during FY18 and continued this during FY19.
The average inflation during 2019-20 is projected around 8.5 percent while the capital market is expected to remain vibrant during 2019-20 as a result of the measures to be adopted by the Securities and Exchange Commission of Pakistan.
The exports are projected to reach at $26,187 million in 2019-20 from $24,656 million estimated for FY 2018-29 whereas, on account of higher growth trajectory, imports are expected to marginally increase by 0.8 percent and reach the level of $53,664 million in 2019-20 from an estimated total of $53,248 million for 2018-19.
The Current Account Deficit (CAD) is projected to be contained at $8,312 million (3 percent of GDP) during 2019-20 as against the estimated deficit of US$13,179 million (4.7 percent of GDP) by the end of the outgoing fiscal year.