Hammad confident Pakistan's economy to grow faster than earlier forecasts

Minister for Finance and Revenue Hammad Azhar has said that the government has targeted a growth rate of over 4 percent from the next fiscal year. The minister expressed confidence that Pakistan's economy will this year grow at a faster rate than earlier forecasts.

“Starting from next fiscal year, we will be targeting an even higher growth rate that may exceed 4pc per annum,” said Azhar in a tweet. The minister said that the said growth will not be based on deficits or depleting reserves ‘but will be sustainable.’

Hammad Azhar further expressed confidence about healthy growth in revenues this year and the achievement of the targets.

“Whilst we will continue to crackdown on tax evasion, we will treat tax broadening as a real priority and not just a cliche. Solid programs will be devised for this objective,” he added.

The statement from the finance minister comes after the International Monetary Fund (IMF) has projected Pakistan’s GDP growth rate at 1.5 percent for 2021, against a negative 0.4 percent in 2020. It projected a rise in unemployment from 4.5 percent in 2020 to five percent in 2021.

The IMF in its latest report, “World Economic Outlook (WEO), managing divergent recoveries” has projected GDP growth rate at 1.5 percent in 2021 against -0.4 percent in 2020 and projected at 4 percent for 2022.

The Fund has also projected a decline in inflation from 10.7 percent in 2020 to 8.7 percent in 2021, which is projected to decline to eight percent in 2022.