ISLAMABAD, April 17: Pakistan would achieve a 5.8 per cent GDP growth rate during the current fiscal year as against its budgeted target of 5.3 per cent, Finance Minister Shaukat Aziz said here on Saturday.

"The finance ministry today has officially informed Pakistan's donors and the international financial institutions that the fiscal year 2003-04 would close with a 5.8 per cent GDP growth instead of the budgetary target of 5.3 per cent," he told reporters after his meeting with Mr Iwa Saki, director general of Asian Development Bank (ADB).

He hoped that even 5.8 per cent GDP growth rate could be surpassed. "We might further surprise the nation by going even higher than what we have officially announced today," he said, adding that all the targets of economic indicators set for the current fiscal year would be met "or we may exceed them as in the case of GDP growth."

The finance minister said the ADB had informed the government that it would continue to provide resources to sustain this higher growth trajectory in the future as well, and the bank "is of the view that during the medium-term Pakistan has the potential of achieving a GDP growth of eight per cent."

The ADB was apprised of the macro-economic situation and the future prospects to which ADB "has responded that it would continue to provide $1 billion annually in the coming two to three years, and is willing to enhance the provision of resources to Pakistan if it asks for it," he said.

Replying to a question, Mr Saki said the private sector "is the engine of growth," and to achieve higher growth it should come forward and invest along with the public sector.

The investment from the private sector in GDP terms - 16 per cent at present - should go up to 21 to 22 per cent to achieve a higher growth in the future, he said.

He hoped that with higher public spending and reforms in place the private sector investments would also surge.