Islamabad, Jun 8 (EFE).- Pakistan recorded a GDP growth of 0.29 percent in the current fiscal year, which concludes on Jun.30, missing its target of 5 percent by a large margin due to the political and economic crisis that the country is going through.
“Despite all the constraints the performance remained 0.29 percent,” despite forecasts of a 5 percent increase after fiscal year 2021-2022 witnessed 6.1 percent growth, Economy Minister Ishaq Dar said during the presentation of economic data on Thursday.
In April last year, Shehbaz Sharif overthrew former premier Imran khan in a parliamentary vote of confidence, following which political and economic instability has gripped the south Asian nation.
“Floods, global pressure and other factors contributed to the negative growth,” Dar said.
In the previous budget, the government set the target of 5 per cent economic growth amid pressure to control the fiscal deficit and secure a bailout from the International Monetary Fund (IMF).
The IMF board is expected to meet after the government presents the budget on Friday, according to media reports.
Nevertheless, the finance minister said that the government has projected the GDP growth at 3.5 percent for the next financial year.
The minister disclosed that per capita income also dropped to $1,568 from $1,765 during the last financial year due to currency depreciation, lower growth, and rising population.
According to him, the average consumer price index inflation rate rose from 11.3 percent to 29.2 percent during the FY2023.
The survey said that the inflationary pressures emanated from weaker exchange rate, supply disruptions created by flood damages, higher global food prices, and broader tariff reforms for both electricity and fuels.
Amid spiraling inflation, propelled by the financial and institutional crisis, the authorities seek to alleviate its liquidity problems by securing a tranche of $1.1 billion from the IMF.
The government is set to present its national budgets on Friday, which presents an opportunity to offer repayment guarantees to the global financial body so that it may resume its aid program signed in 2019 for $6 billion dollars, which was increased by another $1 billion last year after heavy floods.
Pakistan has not received IMF assistance since August last year, when it approved the release of a $1.177 billion tranche as the country faced its worst ever floods. EFE