Govt sets 3.5pc GDP growth target for FY 2023-24

ISLAMABAD: Pakistan’s government set the Gross Domestic Product (GDP) growth target for the fiscal year 2023-24 at 3.5 percent, with sectoral growth of 3.5 percent in agriculture; 3.4 percent in industrial; and 3.6 percent in services.

This was informed in the meeting of Annual Plan Coordination Committee (APCC) chaired by Minister for Planning, Development and Special Initiatives Ahsan Iqbal, according to a statement issued today.

The chief economist presented an economic outlook for 2023-24 in the meeting, saying that it shall result in an orderly rebalancing between the economic growth, and current and fiscal account balances.

He noted that the Gross Domestic Product (GDP) growth target for the fiscal year 2023-24 will be at 3.5 percent.

However, he also raised caution about the global slowdown, increased interest in developed countries, and elevated commodity prices that may hinder the economic plans.

The minister highlighted that the government inherited the economy facing a number of challenges on external and internal fronts causing massive fiscal constraints.

Therefore, Ahsan Iqbal advised the provincial governments and Federal Ministries/Divisions to use caution and efficiency in devising their development projects.

He also informed participants that the Ministry of Planning, Development & Special Initiatives had worked out a 5Es strategy (Exports, E-Pakistan, Environment, Energy, Equity), which should serve as a guiding post for designing our development program.

He added that Annual Plan 2023-24 and Public Sector Development Plan (PSDP) 2023-24 shall focus on prioritising projects at the advanced stage and token allocation should also be avoided

Chief Economist apprised participants about economic performance achieved during fiscal year 2022-23 and growth projections for fiscal year 2023-24.

He said that during 2022-23, due to high inflation, caused by unfavorable external environment, floods and import compression measures, only marginal economic growth was recorded. Lastly, he highlighted significant improvement in fiscal and current account balances, which he termed as a positive sign for revival of growth during 2023-24.