ISLAMABAD: Pakistan’s Finance Ministry expects economic growth in thefinancial year ending in June to hit 3.3pc, well below a target of 6.2pcset last year, with key sectors all performing worse than expected,according to a planning document seen by Reuters.
The document also sets a target of 4pc growth for the 2020 financial year,underlining the economic headwinds facing the government of Prime MinisterImran Khan.
The targets are due to be published officially on Monday ahead of thebudget on June 11, which is expected to include tough austerity measuresfollowing a provisional bailout agreement with the International MonetaryFund.
Khan’s government came to power in August facing a yawning budget deficitexpected at around 7pc of the gross domestic product as well as a balanceof payments crisis, with foreign exchange reserves that cover less thanthree months of imports.
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It has promised reforms to stimulate exports, cut the deficit and overhaulthe power sector, and has pushed ahead with an ambitious infrastructuredevelopment project with China. But Pakistani households have struggled,with inflation running at more than 9pc.
Key sectors in Pakistan’s economy are all performing below the levelsforeseen in last year’s budget, which was passed under the previousgovernment of Shahid Khaqan Abbasi.
