J.P Morgan predicts Pakistan’s growth rate at 4.7% for FY2021: Farrukh Habib

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Minister of State for Information and Broadcasting Farrukh Habib on Thursday said that the world leading financial organization J.P. Morgan has predicted Pakistan’s GDP growth at 4.7% with a deficit of 7.1% for the year 2021.

The minister in a tweet said that the economic growth projection for the next financial is 5.9%.

He further said that J.P. Morgan has endorsed investment in Pakistan as its economic indicators are improving.

According to the assessment report of J.P. Morgan the total volume of GDP will be $329 billion for the next fiscal year.

Pakistan’s budget deficit will be 7.1% for the current year and for the next year it will remain at 5.9%, the report says.

The report also says that it will bring Pakistan’s debt to GDP ratio to 81.6%, which was 87.6% for the year 2020.

His remarks come after the Federal Finance Minister Jahangir Tarin unveiled the Economic Survey of Pakistan 2021.

Federal Minister for Finance Shaukat Tarin said on Thursday and Pakistan’s economy grew 3.9 percent during first nine months of the fiscal year 2020-21, surpassing a projection of 2.1% amid COVID-19 challenges.

He termed the services and manufacturing sectors key drivers behind the unexpected growth during the outgoing fiscal year.

The minister said that effective policies announced by the Imran Khan-led government during the COVID-19 pandemic helped country to heads towards stability.

Total debt and liabilities decreased by almost 8% in one year. Total debt and liabilities stood at 95.3% of GDP at the end of third quarter of 2020-21 as against 103% of GDP inthe comparable period last year, he said.

Shaukat Tarin said FBR collection has surged by 18% as compared to the last year. The revenue collection has so far reached 4.2 trillion rupees, expressing the confidence that it will exceed the target of 4.7 trillion rupees by the end of this financial year.

During the current fiscal year, the total revenue as percent of GDP stood at 15.1 percent whilst total expenditures at 23.2 percent. Thus, fiscal deficit stood at 8.1 percent.

Read more: https://pakobserver.net/live-finance-minister-shuakat-tarin-unveils-economic-survey-of-pakistan-2021/