Business & Economy

Pakistan economy is estimated to grow by 3.9 percent

Islamabad, June 10 (EFE).- The government Thursday estimated that the Pakistan economy grew by 3.9 percent in the current financial year ending June 30 after a 0.4 percent contraction due to the coronavirus pandemic.

However, the projected growth for 2020-21 may not be enough for the country to steer its economy out of trouble.

“The economy is recovering,” Finance Minister Shaukat Tarin told reporters after unveiling the Pakistan Economic Survey 2020-21 in Islamabad on Thursday,

The minister said the GDP growth of 3.9 percent was because large manufactures grew by 9 percent in the first three quarters of the current fiscal year.

He said agriculture that accounts for 19 percent of the economy but employs 40 percent of the workforce grew by 2.7 percent.

The services sector grew by 4.4 percent, compared to minus 3.4 percent in the previous year.

The industrial sector grew 3.5 percent as against minus 2.6 percent in the last fiscal calendar.

Inflation reached 8.6 percent.

The trade balance deficit increased by 21.3 percent to $21.3 billion, while remittances accounted for $26 billion during the period, a record for the country.

Tarin said the country needed to grow faster to offer jobs to its young population.

“Till when will you stabilize the country? Unless we move towards a growth target of 5 percent, 6 percent, 7 percent and 8 percent, the large population of our youth will not get jobs,” said the minister.

The pandemic devastated the economy last year and caused 20 million job losses in the country.

Tarin said 2.5 million people have still not recovered their jobs.

Pakistan has been in a difficult economic situation for years.

In May 2019, it received $6-billion financial aid from the International Monetary Fund. EFE


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