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Pakistan to target 2.3% growth in FY21 budget as economy recovers from pandemic

We are a country who gives costly electricity to factories and then we expect growth from them. Right now industrial units have to buy electricity for the highest rates in the entire country close to 22 rs per unit. How the hell are they suppose to compete? couple it with shitty labour and no consistency in policies, we are doomed!!!
Highest in the region (Asia) ,and for labour you have hit the iron brother ,our labor is the lest productive labor in the world any ways on topic GDP contribution is based on 3 sectors ,Agriculture 23-24 %, LSM 17 -20 % and Service 52-58% (2018 data) now for the past 2 years LSM and Agriculture is negative so forget about any growth from them ,Service alone i.e 50% is effected by COVID so these numbers will be in -ive
 
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5.2% Growth yeah right lol fake growth
Pakistan to Record Highest Growth Rate in Nine Years: WB Report
May 20, 2017

ISLAMABAD, May 20, 2017- Pakistan’s Gross Domestic Product growth in Fiscal Year 2017 is expected to climb to 5.2 percent — the highest in nine years -- and the growth rate will continue to accelerate, reaching 5.5 percent in FY18 and 5.8 percent in FY19.

Released twice a year, the Pakistan Development Update sets out recent developments across the economy and identifies risks and opportunities in the near-term future before focusing on a handful of key development challenges. The report was launched in Lahore on Saturday in collaboration with Lahore School of Economics.

Pakistan’s growth will continue to benefit from growing consumer and investor confidence in the first half of FY17, following the successful efforts to restore macroeconomic stability during the last 4 years. The report highlights that more recently, weakening trade and fiscal balances point toward the need to continue with the reform efforts to consolidate the hard won stability.

“Pakistan’s accelerating growth is good news and reflects the country’s success in building confidence. But the pace of reforms has slowed and it is important for the structural reforms to accelerate,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

A moderate increase in investment is expected to supplement growth, driven primarily by public and private consumption. But the country’s current account deficit and fiscal balances deteriorated in the first half of the financial year, which could affect the reform momentum. The report emphasized the importance of collaboration between federal and provincial governments in delivering on the country’s reform agenda.

“Since the 18th Constitutional Amendment, many important reform areas are now shared responsibility. Provinces have a significant role to play in fiscal consolidation, energy sector reforms and business environment, not to mention their role in delivering high quality health and education services,” said Muhammad Waheed, World Bank Senior Economist for Pakistan. “Effective collaboration between federal and provincial governments will be crucial if Pakistan has to deliver on its growth potential.”

The report discusses a number of challenges that the provincial governments are facing. Using Punjab as an example, it is highlighted that while provincial own-source revenues have significantly increased in recent years, there could have been a further significant gains, if tax policy and administration reforms were implemented.

The World Bank also highlights the importance of the skilling of the youth bulge for better jobs. The Punjab Government is putting in efforts to significantly increase the scale of technical and vocational training programs in an attempt to boost job prospects for the province’s ‘youth bulge’. Several next steps in this area are identified in the report including the application of quality standards and the introduction of initiatives to improve matching between jobseekers and prospective employers.

https://www.worldbank.org/en/news/p...d-highest-growth-rate-in-nine-years-wb-report

http://pubdocs.worldbank.org/en/389...Prospects-June-2020-Regional-Overview-SAR.pdf
 

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Still it doesnt answer what is fake growth .e.g China debt to GDP

The Institute of International Finance estimated that China’s total debt hit 317 per cent of gross domestic product (GDP) in the first quarter of 2020, up from 300 per cent in the last quarter of 2019 – the largest quarterly increase on record. Photo: AP
https://www.scmp.com/economy/china-...ina-debt-how-big-it-who-owns-it-and-what-next
So your first myth is busted as you were correlating with loans .
China's debt to gdp is mostly in Yuan (local currency). Pakistan's debts are in dollars (foreign currency) along with local currency debts. Moreover China has 3 trillion dollars in reserves. Pakistan has a few billion dollars and that are mostly loans and guarantees. No myth busted

Pakistan to Record Highest Growth Rate in Nine Years: WB Report
May 20, 2017

ISLAMABAD, May 20, 2017- Pakistan’s Gross Domestic Product growth in Fiscal Year 2017 is expected to climb to 5.2 percent — the highest in nine years -- and the growth rate will continue to accelerate, reaching 5.5 percent in FY18 and 5.8 percent in FY19.

Released twice a year, the Pakistan Development Update sets out recent developments across the economy and identifies risks and opportunities in the near-term future before focusing on a handful of key development challenges. The report was launched in Lahore on Saturday in collaboration with Lahore School of Economics.

Pakistan’s growth will continue to benefit from growing consumer and investor confidence in the first half of FY17, following the successful efforts to restore macroeconomic stability during the last 4 years. The report highlights that more recently, weakening trade and fiscal balances point toward the need to continue with the reform efforts to consolidate the hard won stability.

“Pakistan’s accelerating growth is good news and reflects the country’s success in building confidence. But the pace of reforms has slowed and it is important for the structural reforms to accelerate,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

A moderate increase in investment is expected to supplement growth, driven primarily by public and private consumption. But the country’s current account deficit and fiscal balances deteriorated in the first half of the financial year, which could affect the reform momentum. The report emphasized the importance of collaboration between federal and provincial governments in delivering on the country’s reform agenda.

“Since the 18th Constitutional Amendment, many important reform areas are now shared responsibility. Provinces have a significant role to play in fiscal consolidation, energy sector reforms and business environment, not to mention their role in delivering high quality health and education services,” said Muhammad Waheed, World Bank Senior Economist for Pakistan. “Effective collaboration between federal and provincial governments will be crucial if Pakistan has to deliver on its growth potential.”

The report discusses a number of challenges that the provincial governments are facing. Using Punjab as an example, it is highlighted that while provincial own-source revenues have significantly increased in recent years, there could have been a further significant gains, if tax policy and administration reforms were implemented.

The World Bank also highlights the importance of the skilling of the youth bulge for better jobs. The Punjab Government is putting in efforts to significantly increase the scale of technical and vocational training programs in an attempt to boost job prospects for the province’s ‘youth bulge’. Several next steps in this area are identified in the report including the application of quality standards and the introduction of initiatives to improve matching between jobseekers and prospective employers.

https://www.worldbank.org/en/news/p...d-highest-growth-rate-in-nine-years-wb-report

http://pubdocs.worldbank.org/en/389...Prospects-June-2020-Regional-Overview-SAR.pdf
Fake report. It doesn't include massive trade and current account deficits, and foreign loans repayments.
 
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Pakistan to Record Highest Growth Rate in Nine Years: WB Report
May 20, 2017

ISLAMABAD, May 20, 2017- Pakistan’s Gross Domestic Product growth in Fiscal Year 2017 is expected to climb to 5.2 percent — the highest in nine years -- and the growth rate will continue to accelerate, reaching 5.5 percent in FY18 and 5.8 percent in FY19.

Released twice a year, the Pakistan Development Update sets out recent developments across the economy and identifies risks and opportunities in the near-term future before focusing on a handful of key development challenges. The report was launched in Lahore on Saturday in collaboration with Lahore School of Economics.

Pakistan’s growth will continue to benefit from growing consumer and investor confidence in the first half of FY17, following the successful efforts to restore macroeconomic stability during the last 4 years. The report highlights that more recently, weakening trade and fiscal balances point toward the need to continue with the reform efforts to consolidate the hard won stability.

“Pakistan’s accelerating growth is good news and reflects the country’s success in building confidence. But the pace of reforms has slowed and it is important for the structural reforms to accelerate,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

A moderate increase in investment is expected to supplement growth, driven primarily by public and private consumption. But the country’s current account deficit and fiscal balances deteriorated in the first half of the financial year, which could affect the reform momentum. The report emphasized the importance of collaboration between federal and provincial governments in delivering on the country’s reform agenda.

“Since the 18th Constitutional Amendment, many important reform areas are now shared responsibility. Provinces have a significant role to play in fiscal consolidation, energy sector reforms and business environment, not to mention their role in delivering high quality health and education services,” said Muhammad Waheed, World Bank Senior Economist for Pakistan. “Effective collaboration between federal and provincial governments will be crucial if Pakistan has to deliver on its growth potential.”

The report discusses a number of challenges that the provincial governments are facing. Using Punjab as an example, it is highlighted that while provincial own-source revenues have significantly increased in recent years, there could have been a further significant gains, if tax policy and administration reforms were implemented.

The World Bank also highlights the importance of the skilling of the youth bulge for better jobs. The Punjab Government is putting in efforts to significantly increase the scale of technical and vocational training programs in an attempt to boost job prospects for the province’s ‘youth bulge’. Several next steps in this area are identified in the report including the application of quality standards and the introduction of initiatives to improve matching between jobseekers and prospective employers.

https://www.worldbank.org/en/news/p...d-highest-growth-rate-in-nine-years-wb-report

http://pubdocs.worldbank.org/en/389...Prospects-June-2020-Regional-Overview-SAR.pdf

https://timesofislamabad.com/10-Feb...pml-n-government-turned-out-to-be-fake-report
 
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Pakistan to target 2.3% growth in FY21 budget as economy recovers from pandemic
The planning commission paper projects an average inflation rate of 6.5% in 2020-21, a trade deficit of 7.1% of GDP and a current account deficit of 1.6% of GDP. Exports and imports are projected to grow at 1.5% and 1.1%, respectively.

By
Agencies
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June 9, 2020
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budget.jpg

ISLAMABAD: Pakistan will target growth of 2.3% in fiscal year 2020-21, according to government officials and documents seen by Reuters that said the economic landscape would depend mainly on the country’s ability to control the coronavirus pandemic.

Prime Minister Imran Khan’s government is set to present its 2020-21 budget on Friday, in a parliamentary session that only 25% of lawmakers will attend due to pandemic restrictions.

“The GDP growth for 2020-21 is targeted at 2.3 per cent with contributions from agriculture (2.9 per cent), industry (0.1 per cent) and services (2.8 per cent),” a planning commission working paper seen by Reuters said.

That forecast is much rosier than the 0.2% contraction in 2020-21 projected by the World Bank earlier in June. The multilateral lender sees growth of -2.6% this fiscal year, ending June 30, while the government expects a 0.4% contraction.


A recent surge in COVID-19 cases has made economists sceptical about a quick recovery in the South Asian nation. Khan said on Monday that the outbreak was not expected to hit its peak until July or August.

The planning commission paper projects an average inflation rate of 6.5% in 2020-21, a trade deficit of 7.1% of GDP and a current account deficit of 1.6% of GDP. Exports and imports are projected to grow at 1.5% and 1.1%, respectively.

Inflation hit a decade-high of 14.56% in January.

BUDGET OUTLAY

A budget strategy paper in March, just before the pandemic hit, had projected growth of 3% in 2020-21.

The paper, seen by Reuters, foresaw spending of 7.6 trillion Pakistani rupees ($46.76 billion) and a fiscal deficit of 6.9% of GDP — much lower than a current finance ministry projection of over 9% for 2019-20.

Of that, 3.235 trillion Pakistani rupees ($19.90 billion) was earmarked for debt servicing and 1.402 trillion Pakistani rupees ($8.63 billion) for defence — a rise of over 12% from last year.

The March paper projected public sector development spending of 700-900 billion rupees, compared with 650 billion rupees ($4 billion) in the newer planning commission paper.

Officials say the numbers from March’s strategy paper could be tweaked slightly, although the total outlay is likely to be similar.

The National Economic Council (NEC) will review the estimates ahead of Friday’s budget and can make changes.

HISTORICAL BORROWING

Hit hard by the coronavirus and with about $10 billion in debt service costs in the coming financial year, Pakistan needs funds to stave off a balance of payments crisis, officials from the finance and economic affair division told Reuters.

“We have plans to mobilise around $14 billion in inflows,” one of the high-ranking officials said — more than Pakistan has borrowed in a single-year before.

That includes $6 billion from multilateral banks, $2 billion from last year’s IMF bailout package, $3 billion in Chinese commercial loan rollovers, $1.5 billion from Eurobonds, and the rest in bilateral aid and Saudi oil repayment facilitation.

The International Monetary Fund money is subject to a successful review, he said.



GOOD NEWS, FOR HEC,
ITS BUDGET GOT LESS 17 BILLIONS RS

IN 2020. pti WILL SPEND JUST 29 BILLIONS,

EVEN LESS THEN 2018 BUDGET
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Higher education in Pakistan is no higher education Its value remains as if you are made to call AAZ, the president or for that matter Usman Buzdar , CM Punjsb..


Contractual teachers & other staff will be declared "non essential" & will be sent home, you will have a busy year making noise for them...

5.2% Growth yeah right lol fake growth

5.2% growth is sausage of bajwa.

u getting confused by , betterement of pakistani aawaam,

every budget is there to confuse you,
 
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GOOD NEWS, FOR HEC,
ITS BUDGET GOT LESS 17 BILLIONS RS

IN 2020. pti WILL SPEND JUST 29 BILLIONS,

EVEN LESS THEN 2018 BUDGET
..
Higher education in Pakistan is no higher education Its value remains as if you are made to call AAZ, the president or for that matter Usman Buzdar , CM Punjsb..


Contractual teachers & other staff will be declared "non essential" & will be sent home, you will have a busy year making noise for them...



5.2% growth is sausage of bajwa.

u getting confused by , betterement of pakistani aawaam,

every budget is there to confuse you,
Mate I seriously suggest you get your head checked. I don't mean this as an offense, I'm genuinely concerned that all might not be right with you.

 
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China's debt to gdp is mostly in Yuan (local currency). Pakistan's debts are in dollars (foreign currency) along with local currency debts. Moreover China has 3 trillion dollars in reserves. Pakistan has a few billion dollars and that are mostly loans and guarantees. No myth busted
Subhan Allah that somes it up for me ,All loans are commercial ones and backed with some thing e.g in todays currency it is dollar ,Hurrah we discovered the fire today
 
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That defense budget of 8.6 billion dollars has got to wrong.

No way can you maintain over 600000 men and women.salaries and pensions and run three services on 8.6 billion dollars unless the work for free.

This must exclude salaries pensions and equipment purchases which makes the defends budget skewed ie intentionally low.
 
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We are a country who gives costly electricity to factories and then we expect growth from them. Right now industrial units have to buy electricity for the highest rates in the entire country close to 22 rs per unit. How the hell are they suppose to compete? couple it with shitty labour and no consistency in policies, we are doomed!!!
indeed, no wonder our industry is shifting abroad, rates in bangladesh are wayy lower than ours. shame that pti is too blind to see this.
 
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Subhan Allah that somes it up for me ,All loans are commercial ones and backed with some thing e.g in todays currency it is dollar ,Hurrah we discovered the fire today
You can always pay local debts by printing money. Can you pay foreign debts by printing dollars, genius?

indeed, no wonder our industry is shifting abroad, rates in bangladesh are wayy lower than ours. shame that pti is too blind to see this.
It wasn't PTI who did those expensive electricity contracts, dummy
 
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You can always pay local debts by printing money. Can you pay foreign debts by printing dollars, genius?
You can print money it is SBP and when SBP prints money it is again hedge against some thing e.g dollars .Genuis
 
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You can print money it is SBP and when SBP prints money it is again hedge against some thing e.g dollars .Genuis
No you can't just print dollars. Only US Federal Reserve can print dollars. Every other country must earn dollars either by exports, foreign remittances or by taking expensive loans
 
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indeed, no wonder our industry is shifting abroad, rates in bangladesh are wayy lower than ours. shame that pti is too blind to see this.
Pti has seen this and hence taken of construct of 10 big Dams & 10 medium dams, all will be completed gradually till 2028.
Also nuclear power will be gradually increase to 8,000 me till 2030??
The share of LPG/oil will a lot less in energy composition
 
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