No economic target achieved in current fiscal year
Government sets economic growth target of 4% for 2019-20.
ISLAMABAD (Dunya News) – The government missed all the key economic targets for the current fiscal year where Gross Domestic Product locked at 3.3 percent and was almost halved from the target set at 6.2 percent owing to sharp drop in agriculture production and negative growth heralded at industrial sector.
With key sectors all performing worse than expected, the economic survey report will be released on Monday ahead of the budget on June 11 and the government is likely to set economic growth target of 4% for 2019-20.
Manufacturing sector slided by 0.3% and government may set target of 2% for 2019-20 in this sector. LSM has shown negative growth of 2% vs targeted 8.1%. LSM target for new fiscal year may be set at 2.8%
Services sector grew by 4.7% and the target set in this sector was 6.5%. Services sector is likely to show growth of 4.8% in FY2020.
Construction sector showed negative trend and droped by 7.6% against 10% target. Construction growth target for new fiscal year is likely to set at 1.5% by the government.
Agriculture sector grew by 0.8% and agriculture sector growth target was set at 3.8% but for new fiscal year government may set agriculture sector target at 2.9%.
Main commodity recorded a slide of 6.5% and main commodities production for 2019-20 may be set at 3.5%. Other commodities output increased by 1.5%. Target in this sector in 2018-19 was 3.5% and for FY20 target is likely to set at 3.5%.
Cotton output has decreased by 12.7% against 8.9% growth target. Cotton may grow by 3.1% in FY20.
Livestock has grown by 3% against target of 3.8% .Target for Livestock for 2019-20 may be set at 2.5% by the government.
PM Imran Khan s government came to power in August facing a yawning budget deficit expected at around 7% of gross domestic product as well as a balance of payments crisis, with foreign exchange reserves that cover less than three months of imports.
It has promised reforms to stimulate exports, cut the deficit and overhaul the power sector, and has pushed ahead with an ambitious infrastructure development project with China. But Pakistani households have struggled, with inflation running at more than 9%.
