ISLAMABAD, April 7 (APP): The International Monetary Fund (IMF) has predicted Pakistan’s Gross Domestic Product (GDP) to grow by 4.0 percent by next fiscal year (2021-22).

In its annual report “World Economic Outlook 2021”, the IMF has forecast 1.5 GDP growth for Pakistan during the current fiscal year 2020-21.

This however, is in contrast to the revised growth forecast of 3.0 percent for current fiscal year by State Bank of Pakistan (SBP). The actual growth rate target set by the federal government for the corresponding year is 2.1 percent.

Minister for Finance Hammad Azhar also reaffirmed the government’s resolve to have higher GDP growth than the target set for the current fiscal year.

ALSO READ  Pakistan, due to its massive plantation drive, has achieved 9 percent decrease in the green house gas emissions as projected by the international studies and is well ahead of its global commitments made to fight climate change.The country despite having limited resources is playing a lead role in Climate Action and ensuring successful implementation of environment protecting initiatives that will benefit the entire region through absorption of carbon emissions resulting climatic changes. After successful plantation of one billion trees in Khyber Pakhtunkhwa under Billion Tree Afforestation Project (BTAP) and the launch of Ten Billion Tree Tsunami Programme (10BTTP), a scaled up version of the former, has helped in increasing carbon absorption or sequestration to a significant level, said Special Assistant to the Prime Minister on Climate Change Malik Amin Aslam told APP in his exclusive remarks. (Match the picture with story slugged “Massive plantation: Pakistan ahead of its commitment on green house gases emissions” already been released)

“Pakistan’s economy this year will grow at a faster rate than earlier forecasts. Starting from next fiscal year, we will be targeting an even higher growth rate that may exceed 4% per annum. This growth will not be based on deficits or depleting reserves but will be sustainable,” he said in his tweet on Tuesday.

The IMF has also forecasts the country’s inflation rate to gradually subside to 8.0 percent by next fiscal year from 8.7 percent in the year 2020-21.

While, according the the IMF report the Current Account Deficit will remain 1.5 percent during current  fiscal year while it will edge up to 1.8 percent by next year.

ALSO READ  Massive plantation; Pakistan ahead of its commitment on green house gases emissions

The unemployment rate will remain 5.0 percent during current fiscal year and it will come down to 4.8 percent by next year.