Fiscal deficit to remain within target: Report

Fiscal deficit to remain within target: Report

ISLAMABAD, Jul 6 (APP): With continuity in fiscal consolidation efforts, the fiscal deficit for the entire fiscal year is expected to remain within the target, according to Finance Ministry report.

“For Fiscal Year 2022, the fiscal deficit is budgeted to be at 6.3 percent of GDP,” said monthly Economic Update and Outlook for June 2021, adding that the fiscal consolidation efforts continued to remain on track throughout the year.

The report attributed the improvement in the fiscal discipline to the successful implementation of the measures introduced by the government.

It said the fiscal deficit is 1.1 percentage points lower than the last year and recorded at 4.2 percent of GDP during July-April FY2021.

About overall economic condition, the report said that with significant signs of economic recovery, the government would continue to follow the positive reform momentum to boost the competitiveness of country’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery.

“Pakistan economy has shown significant signs of economic recovery with fast resumption of economic dynamism,” it said

According to the report, the government had introduced comprehensive measures to ensure sustainable growth.

“In recent budget 2021-22, government has taken growth-oriented initiatives and will continue to follow the positive reform momentum which will help to boost the competitiveness of Pakistan’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery,” it added.

According to the report, the rebound in economic activity is expected to continue in coming months on account of reopening of economic activities and acceleration in vaccination process.

It said the recent economic recovery (real GDP growth 3.94 percent in FY 2021) and the government measures for inclusive and sustainable growth has built investor’s confidence.
“It is expected that economy will keep its trajectory of higher growth without any macroeconomic imbalances,” it added.