Pakistan sets target of 3.5 pct growth in ongoing financial year

Pakistan eyes a 3.5-percent growth in its economy in the ongoing financial year starting from July 2023 to June 2024, the country's finance ministry has said.

The government has started initiatives like packages for farmers, industry, export promotion, besides encouraging the Information Technology sector and resource mobilization which will help in economic growth, a monthly report released by Pakistan's Ministry of Finance said on Wednesday.

The government has unveiled a comprehensive strategy for every sector of the economy in an effort to revive economic growth and move towards a higher inclusive and sustainable growth trajectory, the report added.

"Further different administrative and policy measures have been introduced to increase the tax collection. Additionally, the State Bank of Pakistan's withdrawal of restrictions on imports will create demand for imports," the finance ministry said.

All these measures will be supportive in improving the revenues, and on the expenditure side, various austerity measures are in place that will be helpful in reducing non-productive expenditures, the report added.

"To achieve higher and sustainable economic growth, it will require prudent and effective economic decisions, political and economic certainty, and continuation of friendly economic policies along with enough foreign exchange financing," the report said.

The recent International Monetary Fund's approval of the stand-by arrangement and other bilateral and multilateral inflows will pave the way to improve further the macroeconomic environment and the confidence of economic agents, the report added.