ISLAMABAD: Pakistan has set ambitious economic targets for the next three years, aiming to raise the GDP growth rate to between 4.2% and 5.7%, alongside a sharp rise in exports, remittances, and tax revenues.
The economic plan’s objectives include expanding the national economy to Rs162,513 billion, increasing exports by over $10 billion, and boosting remittances to a record $44.82 billion.
According to the three-year Macroeconomic and Fiscal Framework released by the Ministry of Finance, significant growth is expected in exports, remittances, tax revenue, and overall economic size.
The framework projects that Pakistan’s exports will rise from $44.83 billion to $55 billion over the next three years, an increase of more than $10 billion.
Goods exports are forecast to reach $42.69 billion, while services exports, including information technology, are estimated at $12.24 billion.
For the current financial year, goods exports are estimated at $35.28 billion, and services exports are projected at $8.38 billion.
Imports are expected to increase by $14.5 billion, reaching $79.71 billion. Remittances are projected to hit a record $44.82 billion in three years, up from $39.43 billion expected in the current fiscal year.
The International Monetary Fund (IMF) has estimated Pakistan’s economic growth rate at 3.6% for the current fiscal year.
The English daily Express Tribune, quoting sources, reported that during last week’s inconclusive discussions, IMF staff projected a growth rate of 3% to 3.5%.
They noted that the IMF considered the recent floods as a key factor weighing on the economic outlook, particularly affecting the agriculture sector due to damage to major Kharif crops.
The Pakistan government has already revised its ambitious 4.2% growth target down to 3.5%, while the World Bank has projected 2.6% growth for similar reasons.
Sources added that even in the medium term, the IMF does not foresee Pakistan achieving more than 4.5% economic growth, and that projection is contingent on significant increases in exports and investment.
The Executive Board of the IMF is expected to approve the third installment of $1 billion for Pakistan under the Extended Fund Facility (EFF) programme during its meeting scheduled for December.
The Fund is also likely to provide $200 million under climate financing, which will be made available through the Climate Resilience Financing mechanism.
A staff-level agreement between Pakistan and the IMF was finalised on October 15, with officials from the Ministry of Finance expressing optimism that the next installment under the ongoing loan program will be approved soon.
