Why Pakistan economic growth rate will not be maintained in next financial year?
The rupee continues to depreciate
Islamabad : In Pakistan the Federal Government Annual Plan Coordination Committee has set a growth target of 5% for the next financial year. In current financial year the economic growth rate is expected to be up to 06 percent.
Earlier Pakistan Federal Ministry of Finance had warned that the country overall economic growth would not grow at 06% in the next financial year.
Ministry of Finance Pakistan predicts that the country's economic growth will not grow at 06% in the next financial year & annual plan coordination committee target of 05% came at a time when the country was about two months old. The government is going to present its 1st budget.
The plan is targeted by the Coordination Committee at 5% and the Ministry of Finance predicts that the overall economic growth rate will not grow at the rate of 6% in the next financial year according to data released by the government National Accounts Committee. It said that in the current financial year the economic growth rate or GDP growth rate will remain at 06 percent.
تفصیلات لنک میں۔پاکستانی وفد میں کون کون شامل تھا
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The Ministry of Finance has attributed the slowdown in GDP growth to not being 6% in the next financial year due to inflation & depreciation of Pakistani Rupee against the dollar.
The ministry said that although the country's economy is expected to grow at a rate of 6% in the current financial year growth could not be sustained next year due to financial pressures & the performance of the external sector.
Economists in Pakistan have commented on the prediction that what has-been said by the Ministry of Finance means that Pakistan economy is overheated meaning that it is growing beyond its capacity and capacity. Not sustainable.
According to him this economy is one in which it consumes more than it produces and this consumption increases inflation and is dangerous for economy.
Although increasing the country economic growth rate is necessary to create new jobs this economic growth also creates problems for a country that relies on imports for energy and raw materials for industry.
Minister of State for Finance, Dr. Ayesha Ghous Pasha while commenting on the economic growth figures of the previous government said that it was debt & consumption led growth which was not sustainable.
On the other hand Muzammil Aslam spokesperson of Pakistan Tehreek-e-Insaf PTI for economic affairs, while commenting on this, said that due to the economic policies of the PTI Pakistan Tehreek-e-Insaf government the economic growth this year is due to the growth in agricultural & industrial sectors. This growth is based on production.
He said the current government was worried that the economic growth rate would not be maintained at 6% in the next financial year because of high interest rates and inability to meet energy needs. Increase does not seem possible.
What is the basis of the Pakistan Finance Ministry forecast?
A report released by Pakistan Federal Ministry of Finance said that due to the micro economic imbalance in the country it is difficult to achieve 6% economic growth next year.
According to the finance ministry country is currently facing rising inflation foreign trade deficit falling value of the national currency rapidly declining foreign exchange reserves and growing uncertainty.
The reason for slowdown in the country economic growth?
Explaining this Shahid Mahmood research fellow at the Pakistan Institute of Development Economics and an expert on economic affairs said that whenever the pace of economic growth of the country increases the demand for energy increases. Growing & Pakistan relies on external sources for energy needs such as oil gas & coal.
When the demand for energy increases country import bill will increase and external payments which require dollars will increase & when the dollar is spent it will put pressure on the country foreign exchange. Will have effects.
He said that Pakistan economic structure is such that whenever GDP grows country trade deficit will increase which will create an imbalance in payments. He said that in order to achieve sustainable GDP it was necessary to change the economic structure.
The economy is overheated at the moment Dr Amjad Rashid an economics teacher at the Lahore School of Economics told the British news.
He said it was expected to grow by 04% but accelerated to 06%, creating an imbalance in the microeconomics which means that fiscal deficit has widened and inflation has risen. Is.
تفصیلات لنک میں۔پاکستانی وفد میں کون کون شامل تھا
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کروکر مچلی گوادر میں لوگوں کی زندگیاں بدل رہی ہے ایک مچھلی ایک کروڑ روپے کی
تیل پاکستان میں 30روپے مہنگا بھارت میں 10روپے سستا ہوگیا تفصیل۔
ایمن مزاری کی درخواست ضمانت منظور
National Assembly passed Anty Overseas Voter Bill
کراچی ائیرپورٹ امپورٹ پابندی کی آڑ میں مسافروں سے ٹافی چاکلیٹ بھی چین لی گئ
Explaining this he said that when there was an imbalance in external payments it had a negative impact on the value of rupee which made imports more expensive & increased inflation in the country.
What is the position of PTI & Nawaz League on 06% GDP growth this year?
Regarding the ⁰⁶ per cent growth in the current financial year Shahid Mehmood said that economists from both the PTI & Nawaz League are reluctant to talk about the fact that high GDP has created more problems for Pakistan. Appears in the form of imbalances in payments.
In response to Minister of State for Finance Dr Ayesha Ghous Pasha PTI Economic Affairs Spokesperson Muzammil Aslam said that first of all it is necessary to understand the structure of growth.
He said that when the GDP growth was six per cent in the previous period of Nawaz League, then the current account deficit of the country became 19 19 billion whereas this year when the growth is 06 percent the deficit is 14 billion. Will be.
He said that the reason for this deficit is also the rising prices of commodities and oil in the world. Muzammil said that if these prices had not risen, the current account deficit would have been only 5 billion with this high growth due to the strong production figures behind the GDP growth.
Economist Muzammil Aslam says that the reason for the slowdown in growth next year is that country is facing an energy crisis and energy supply is essential for economic growth. With this government has so far raised interest rates by four per cent & it is likely that in the coming days this interest rate will increase further which could go up to 20 per cent. With this high interest rate, 6% growth is not possible in the coming financial year.
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