GDP growth for new fiscal year set to 5pc by NEC

The National Economic Council has set the GDP growth rate of the country at five percent in the next fiscal year.

According to media reports, the National Economic Council approved Rs.2.184 million national development outlay, while inflation for the coming year has been estimated to be 11.5 percent.

However, the PM urged the NEC to keep GDP growth at six percent but later upon suggestions of Federal Finance Secretary Hamid Yaqoob, he was convinced to keep it at five percent.

The NEC chaired by PM Shahbaz Sharif was attended by federal cabinet along with chief ministers. The PSDP funding was decided to be at a 60:40 ratio out of Rs800 billion in the coming fiscal year.

Out of Rs800 billion allocated to the PSDP for 2022-23, Rs433 billion has been allotted for infrastructure, Rs227 billion for transport and communication, Rs84 billion for energy, Rs83 billion for water and Rs39 billion for planning and housing have been allocated out of a total of Rs800 billion for the coming fiscal year.

The NEC granted the approval of reducing down the approved schemes of Central Development Working Party (CDWP) from 10 to 7.5 billion rupees and of DDWP (Departmental Development Working Party) from two billion to one billion rupees.

Funding for sustainable development goals amounting up to Rs70 billion rupees will be managed through members of parliament in their areas. The current account deficit for the next year has been targeted at 2.2 percent of GDP ($9.5 billion).

The federal PSDP has been reduced from Rs900 billion to Rs550 billion. ML-1 has also been included in the PSDP and for the purpose Rs5 billion will be allocated in budget. The allocation funds for FATA were decided to be Rs52 billion after a request from Khyber Pakhtunkhwa’s finance minister.

Moreover, Rs25 billion have been allocated for Diamer Bhasha Dam out of which Rs18 billion are fixed for dam construction and remaining Rs7 billion have been fixed for land acquisition. A total amount of Rs83 billion is proposed for the sector.