ISLAMABAD: The Annual Plan Coordination Committee (APCC) approved on Friday, the federal Public Sector Development Programme (PSDP)outlay of Rs 900 billion besides endorsing the Gross Domestic Product (GDP) growth rate target of 4.8 percent for the upcoming fiscal year 2021-22, Minister for Planning, Development and Special Initiatives Asad Umar said.

“The Rs 250 increase in the development budget “The size of federal PSDP has been increased by 40 percent from Rs 650 billion to Rs 900 billion next year which would be the highest expenditures in one year in history of Pakistan,” the Minister said during a press conference here.

He said this increase in PSDP would crowd in more investment that would contribute the 0.25 percent increase in the country’s GDP growth.

Recalling the higher growth of 5.4 percent during the previous government, the minister added that during that year, the country’s Current Account Deficit (CAD) stood at around US$20 billion or 6 percent of the total GDP.

On contrary, he said during current fiscal year the Current Account would post a minor surplus while next year the CAD would stand at $2.3 billion or 0.7 percent of the GDP. “Our economy can bear the current account deficit of up to 2 percent of GDP,” he maintained.

Our econoy can bear the CAD equivalant to up to 2 percent of GDP. Asad Umar said the current year’s GDP growth of 3.94 percent was based on productive sectors, however during the previous government, the growth rated was consumption driven which was not a healthy sign for any economy.

He said the Gross National Product (GNP) in which remittances were also included posted a record increase of 6.5 percent as compared to the previous year which was the highest in 16 years.

He said the APCC in its meeting today also approved the annual plan for the upcoming fiscal year according to which the investment to GDP ratio was set at 16 percent as compared to the current year’s ratio of 15.2 percent.

Similarly he said the remittances which would reach to $29.1 billion by end of current year would be increased to $31.2 billion by next fiscal year.