The Federal Government of Pakistan has estimated an economic growth rate of 5.1% for the coming three years.
A three-year medium-term budgetary plan prepared by the Ministry of Finance forecasted economic growth of 3% in 20-21, 4.5% in 2021-2022 and 5.1% in 2022-23. Nonetheless, the report reported that economic growth in the country will remain at 2.6% during the current fiscal year, which is 0.4% below the last year’s growth.
The report also claimed that inflation would be reduced from 11.7% to 5.2% by the end of FY2022-2023 and that the budget deficit will also be reduced to 3.1% of the Gross Domestic Product (GDP) from the 7.1% forecast for the current year. Likewise, the study added that public debt to GDP will also be reduced from 83% over the next three years to 77%.
The Debt Management Office of the Finance Division has been formulating policies to reduce the borrowing cost of the federal government, enabling the government to borrow in long tenors at lower rates during the medium term, while also encouraging a long-term dispensation on debt,” the report added.
The report said that the government is focusing to improve the economic growth of the country in agriculture, industrial, and services sectors. In this reference, the government is also implementing initiatives including Ehsaas Programme, Kamyab Jawan Programme, and Sehat Insaf Card.