Economic Survey sees inflation spiraling out of control
The government would release the outgoing financial year 2020/21 Economic Survey on Thursday (tomorrow).
According to the survey, the rate of inflation is expected to surge above the set target. The inflation target for 2020/21 was set at 6.5 percent but it is expected between the region of 8 percent to 9 percent during the outgoing fiscal.
This year cotton crop was badly affected. Exports exceeded the set target while the government failed to achieve the targets of trade deficit and imports.
It is expected that the outgoing fiscal year would see a growth rate of 3.94pc whereas the growth target was set 2.1pc.
In the outgoing financial year, the services sector has grown by 4.43pc while the target was 2.6pc.
The industrial sector is expected to show a growth of 3.57pc in fiscal 2020/21 while the government had set the target at 0.1pc.
In the outgoing financial year, the agriculture sector grew by 2.77pc against the target of 2.8pc.
The big crops production rate is expected to be 4.65pc.
The cotton ginning showed a negative growth rate i.e. -15.58pc. While the livestock sector saw a growth of 3.06pc.
The manufacturing sector rose by 8.71pc and the textile sector surged by 5.9pc.
Petroleum products rose by 12.71pc. In the automobile industry, the growth rate was 23.38pc.
In fertilizer sector, 5.69pc growth was recorded. In small industries the production rate was 3.88pc.
The construction sector rose by 8.34pc. The wholesale and retail trade saw an increase by 8.37pc.
The transport storage and communication sector registered negative growth of -0.61pc.
In finance and insurance sector, 7.84pc growth was recorded.
In the fiscal 2020/21, there was an increase of 4.01pc in housing sector. In general government services, the growth rate was 2.20pc. Other private services registered a surge of 4.64pc.
According to the outgoing fiscal year’s survey report, the GDP has increased from Rs41,556 billion to Rs47,709 billion.
The per capita income has increased from $1,361 to $1,543.
The government has achieved most of the economic targets of the fiscal 2021. Remittances and tax collections recovered by the FBR have reached record high.
The current account deficit has become surplus. While the outgoing fiscal saw an increase in the yields of wheat, sugarcane, maize, rice and other small and big crops.
PM meets economic team today
Prime Minister on Wednesday summoned his economic team for the deliberation on upcoming budget 2021/22.
Finance Minister Shaukat Tarin, Minister for Development and Planning Asad Umar and other ministers would hold meetings with the prime minister.
The economic team would apprise the PM of the process of budget preparation, development schemes and funds allocated for the development schemes.
It is expected that some important decisions would be taken in these meetings.
Reporter Waqas Azeem