Days after Pakistan recorded 3.94 percent GDP growth, surpassing all estimates, the government is now aiming for higher economic targets than the previously estimated, for the next fiscal year, reported Dawn. The IMF was also informed about the government’s revised targets and they have given in-principle approval. 

The GDP growth rate for the next year is now being targeted at 5 percent, instead of 4.2 percent earlier approved by the federal cabinet on April 13, an official informed a parliamentary committee on Thursday. 

Likewise, inflation is now anticipated to increase by 8.2 percent against the previously estimated 8 percent. The overall budget deficit limit has now been pitched at 6.3 percent of GDP instead of earlier 6 percent, while the primary deficit would be around 0.6 percent instead of 0.1 percent. 

The changes have been made in the backdrop of the encouraging growth scenario, Waqar Masood, the special assistant to the prime minister on finance and revenue, said. He said that while remaining within the IMF program that required austerity, the process of expansion was also a major consideration of the government.

He also informed the government has been in touch with the IMF team as part of the ongoing budget-making exercise. However, to contain food and energy prices amid the third Covid wave, the Pakistan government has asked the IMF for some relaxation on fiscal expansion.  

(SAM)