GDP target for next financial year 2020-21 set at 2.3%
Finance Advisor Abdul Hafeez Sheikh, while addressing a press conference in Islamabad, said that the GDP target for the next financial year ( 2020-21) has been proposed to be 2.3% while the current year’s GDP growth was negative 0.4% against the target of 3%.
The proposed targets of various sectors have been set at:
a) Agriculture 2.9%
b) Industries 0.1%
c) Services Sector 2.8%
d) Trade Deficit 7.1%
e) Current Account Deficit 1.6%
According to the document, inflation is projected to fall from 11% to 6.5% during the next financial year, and there are proposals to reduce government’s non-developmental expenditures.
The document also proposed to further target subsidies in the next financial year.
Agriculture sector grew by 2.67% in 2019-20
The outbreak of deadly Corona virus, which had badly affected the global economies also negatively impacted the national economy and performance of all major sectors remained dismal during the outgoing fiscal year (2019-20).
However, during period under review, the agriculture sector performed well as it recorded strong growth of 2.67 percent considerably higher than 0.58 percent growth achieved during same period of last year.
The maize production in the country grew by 6.0 percent to 7.236 million tons, whereas cotton production declined by 6.9 percent and it was recorded at 9.178 million bales.
sugarcane production witnessed nominal reduction of 0.4 percent as it was recorded at 66.880 million tones. Wheat is the most important crop of Rabi season, which showed growth of 2.5 percent and reached to 24.946 million tons during the year to be ended on June 30.
Livestock having share of 60.56 percent in agriculture and 11.69 percent in GDP achieved the growth at 2.58 percent.
The Fishing sector having share of 2.06 percent in agriculture value addition (and 0.40 percent in GDP), grew by 0.60 percent, while Forestry sector having share of 2.13 percent in agriculture (and 0.41 percent in GDP) grew by 2.29 percent.
Major points and allocations
Rs20billion allocated for health sector
Balochistan to get Rs10billion special grant
Rs1billion allocated for artist welfare fund
Inflation to be brought down to 6.5 percent
Current account deficit to be maintained at 4.4 percent
Rs40billion allocated for Pakistan Railways
Rs10billion for the agricultural sector
Rs6billion allocated to deal with challenges posed by climate change
Rs20billion allocated for science and technology
Rs48billion for KP’s tribal areas
Exemption from taxes and duties on medical and testing equipment extended to three more months
Traders can do transactions up to Rs100, 000 without showing NIC
Rs12billion allocated for food security