Pakistan sets 4.8per cent GDP growth target for 2021/22

Pakistan sets 4.8per cent GDP growth target for 2021/22

ISLAMABAD: Pakistan, currently in talks with the IMF about its US$6 billion bailout programme, on Friday set a growth target at 4.8per cent of GDP for financial 2021-22 and a fiscal deficit target of 6.3per cent.

Finance Minister Shaukat Tarin set out the annual budget before parliament, with a total spending outlay of 8.4 trillion rupees (US$53.93 billion).

The South Asian nation has been buoyed by surpassing growth projections in the current financial year despite suffering a third wave of COVID-19 infections. GDP growth was clocked provisionally at 3.96per cent, compared to a target of 2.1per cent, for FY2020-21.

"We want to make sure of a growth rate of 6per cent to 7per cent in the next two to three years," Tarin told parliament.

Tarin also announced the country would set a target of 5.8 trillion rupees (US$37.24 billion) in revenue collection for FY2021/22.

Pakistan is currently in talks with the IMF as part of the sixth review of its 39-month bailout programme, which it entered in 2019.

The revenue target has been a key topic in negotiations, and Tarin has said the IMF and Pakistani government debated ways to achieve the target, which is 23per cent higher than the current year's expected collection.(US$1 = 155.7500 rupees)

(Reporting by Asif Shahzad; Additional reporting by Umar Farooq; Writing by Gibran Peshimam; Editing by Edmund Blair and Nick Macfie)

Source: Reuters