Islamabad: The federal government on Wednesday (June 8) decided to set the Gross Domestic Product (GDP) target at 5% for the fiscal years 2022-23 (FY23), news sources reported. The government will make PKR 2.184 trillion worth of consolidated public sector investment.
The budget-related objectives and targets were reportedly decided during a meeting of the National Economic Council (NEC) headed by Prime Minister (PM) Shehbaz Sharif and the chief ministers of the three provinces. The committee resolved to exceed the benchmarks to secure long-term growth in all sectors of the economy. The following decisions were made during the meeting:
The government has allotted PKR 800 billion for the Public Sector Development Programme (PSDP) out of the overall consolidated investment of PKR 2.184 trillion, while the meeting was informed that total federal spending will be limited to PKR 550 billion.
The provinces will spend a total of PKR 1.384 trillion on Annual Development Programmes (ADP), a 12% increase over FY22.
The Macroeconomic Framework for Annual Plan 2022-23 is set at a 5% growth rate, with agriculture growing at 3.9 %, manufacturing growing at 7.1 %, and services growing at 5.1 %.
The broad-based resurgence of large-scale manufacturing is expected to maintain 7.4 % growth in 2022-23.
The manufacturing industry as a whole is expected to rise by 7.1 %.
The amount of investment in FY23 is predicted to fall marginally to 14.7 % of GDP.
The NEC also resolved that growth objectives and economic moderation shall be set to accommodate as many people as possible. The fiscal strategy, NEC anticipated, would provide budgetary stability, eliminate poverty, and enhance income for the majority of the population.
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