KARACHI: The State Bank of Pakistan (SBP) has projected the real GDP growthat 4 per cent to 5 per cent for the current fiscal year, as per the actualtarget set for the fiscal year. However, the current account deficit hasbeen projected at up to 3 per cent of the GDP as against the actualestimate of 0.7 per cent for the fiscal year 2021/22.
In its Annual Report 2020/21 on the “State of Pakistan’s Economy” issued onWednesday, the SBP said the average Consumer Price Index (CPI) would bearound 7 per cent to 9 per cent.
The remittance inflows and exports have been projected at $32.5 billion and$27.5 billion, respectively, during the current fiscal year; however, theimport bill projection has gone up to $63.5 billion as against the actualestimate of $55.3 billion.
Similarly, the fiscal deficit has been estimated to be in the range of 6.3per cent and 7.3 per cent for the current fiscal year against the target of6.3 per cent.
Read Top Stories
According to the report, Pakistan’ economy rebounded during FY21, with thereal GDP growth rising to 3.9 per cent. Importantly, this expansion in theeconomic activity was accompanied by a 10-year low current account balancethat contributed to a significant buildup in foreign exchange reserves.
The fiscal deficit also edged down despite the Covid-related spending,leading to an improvement in the public debt-to-GDP ratio, unlike theexperience of most countries across the world.
