The federal government has set ambitious economic targets in the budget for the fiscal year 2024–25 amidst challenging global and domestic economic conditions.
According to official documents, the budget aims for a GDP growth rate of 3.6% for the next fiscal year. To curb rising living costs, the inflation target has been set at 12%. The government is optimistic about achieving these targets through strategic economic policies and reforms.
Per capita income, sectoral growth
The budget projects the per capita income to reach Rs543,968. Growth targets have been defined across various sectors:
Agriculture: A modest growth target of 2%, despite an expected decline to -4.5% in major and important crop production. However, other crops are expected to grow by 4.3%.
Industrial sector: Targeted to grow by 4.4%, with large-scale manufacturing set at 3.5% and small and cottage industries aiming for an impressive 8.2% growth.
Services sector: Anticipated to grow by 4.1%, with wholesale and retail sectors also targeting a 4.1% growth.
Trade and external accounts
The budget sets a target for domestic exports at $32.34 billion, while imports are projected at $57.28 billion, leading to a trade deficit target of $24.94 billion.
Remittances and current account deficit
The target for remittances from Pakistanis abroad is set at $30.27 billion, reflecting the crucial role of expatriate income in the national economy. The current account deficit is projected to be managed down to $3.7 billion, while the primary income balance is expected to be a negative $7.64 billion.
