Islamabad: According to the current forecast, due to the impact of the COVID-19 pandemic, the GDP growth rate is negative 1.5, and the country ’s economy will achieve 2% growth in the upcoming fiscal year (2020-21), fiscal and revenue The Prime Minister’s adviser, Dr. Abdul Hafez Sheikh, said Thursday.
The consultant participated in the “Pakistan Economy: Webinar after COVID-19” organized by the Institute of Chartered Accountants of Pakistan (ICAP). The consultant said that Pakistan expects to grow by about 3% this fiscal year, but eventually it will show negative growth. Due to the effect of coronavirus, the ratio is 1% to 1.5%.
However, he said when the situation would improve. GDP is expected to increase by 2% next year.
Similarly, the consultant said that the fiscal deficit next year is expected to be reduced from 9% this year to 9%, while the debt-to-GDP ratio will also be reduced.
Talking about the situation after the COVID-19 meeting, the consultant said that the International Monetary Fund (IMF) had predicted a global growth of 3%.
As seen in April, the contraction of the global economy has affected the country ’s exports, during which exports fell by 40% compared with April last year.
Similarly, due to the blockade and sluggish economic activity, the unemployment rate has risen, and the tax revenue has also declined, so expenditures will be affected.
He said that the government has taken comprehensive measures and announced an economic stimulus plan of 1.2 trillion rupees to help businesses and socially vulnerable groups cope with the challenge of coronavirus.
He said that the International Monetary Fund has always supported the government’s stimulus plan, which was launched by the government to check the economic contraction, and that the stimulus package given to the construction industry will also help maintain economic activity.
He said that when the government came to power, the country was facing a severe economic crisis. However, in the process of making some difficult decisions and finally producing results, people tried to get the country out of the crisis.
He added that due to these policies, the current account deficit has been reduced from $ 20 billion to $ 3 billion. Similarly, stagnant exports began to grow, and the rupee was allowed to find the right value in the market,
In addition, after the country joined the IMF plan to provide $ 6 billion, global participants and financial institutions regained confidence, and the Asian Development Bank (ADB) and the World Bank (WB) also provided support for the country.