NEC targets 4.8% GDP growth for next fiscal year

• NEC approves macroeconomic framework for the fiscal year 2021-22.
• Total development outlay for the next financial year to be over Rs2100.
• Rs42 billion allocated for Higher Education Commission.

The National Economic Council (NEC) on Monday targeted the gross domestic product (GDP) growth at 4.8% for the next fiscal year, a statement from the Prime Minister's Office said.

The development came during a meeting of the NEC in Islamabad, with PM Imran Khan in the chair and chief ministers of all the provinces and other members in attendance.

The NEC approved the macroeconomic framework and GDP growth projections for the fiscal year 2021-22.

The proposed growth target of 4.8% was approved, with sectoral growth targets of 3.5% for agriculture, 6.5% for the industrial sector, and 4.7% for the services sector.

Ministry of Planning Development and Special Initiatives presented the Public Sector Development Program (PSDP) for 2021-22, the statement said.

PSDP allocations

The ministry informed the meeting that the revised estimate for the total development outlay of the ongoing year is Rs1527 billion, while the total development outlay for the next financial year would be over Rs2100 billion, including PSDP of Rs900 billion.

This would include Rs244 billion for transport and communications, Rs118 billion for energy, Rs91 billion for water resources, Rs113 billion for the social sector, Rs100 billion for regional equalisation, Rs31 billion for science and technology and IT Sector, Rs68 billion for SDGs, and Rs17 billion for the production sector.

The meeting was informed the PSDP would cater to the government’s plans to increase focus on lagging areas and regions, the statement said, adding for this purpose, sufficient allocations had been made for projects in South Balochistan, various districts of Sindh, as well as for Gilgit Baltistan.

Allocation for HEC

Allocations have also been made for infrastructure projects of districts in South Punjab. Similarly, an allocation of Rs54 billion has been made for the newly merged districts of KP. In the social sectors, Higher Education Commission has been allocated Rs42 billion.

PPP projects

NEC was informed that with the operationalisation of the Public-Private Partnership (PPP) Authority, a number of projects are also being expeditiously processed for implementation.

These include Sukur-Hyderabad Motorway and Sialkot-Kharian Motorway, which are at an advanced stage. While other major projects such as Karachi Circular Railway (KCR), KPT-PIPRI Freight Corridor, and other projects will likely be launched during the year.

The government has, for the first time ever, made an allocation of Rs61 billion in PSDP for financing the viability gap of PPP projects, to make sure that PPP projects can be successfully implemented.

Addressing the meeting PM Imran Khan emphasised increasing the pace of implementation of development projects to ensure that the gains made through stabilisation of the economy could be translated into economic growth resulting in the well-being of the people of Pakistan