ISLAMABAD: Minister of Finance and Revenue Miftah Ismail on Thursday unveiled the budgetary document of ‘Pakistan Economic Survey 2021-22’. He stated that a GDP growth rate of 5.97% for the current fiscal year will be unsustainable as the country has to stabilise its economy first.
The report stated that the country saw a greater economic growth during the year, resulting in the Current Account Deficit (CAD) to rise to a level where the government was forced to lower the economy’s growth rate.
Total imports for the fiscal year increased by 48 percent to $75 billion, while exports rose by 28 percent, the report said.
The government was only able to pay off 40 percent of the import bill from the country’s exports’ earnings, with the rest being sourced from other funds, including loans.
The finance minister stated that the Balance of Payment (BoP) eased off during the fiscal year as prices for commodities such as petroleum declined due to Covid-19. However, as prices started rising in the global market, the government was unable to manage the BoP, resulting in declining foreign exchange reserves.
In order to stabilise the economy, the government will have to take tough decisions, the finance minister stated.