5.5pc GDP growth target approved for fiscal year 2015-16

ISLAMABAD: The National Economic Council in a meeting chaired by Prime Minister Nawaz Sharif at PM Office on Monday approved a Gross Domestic Product growth target of 5.5 per cent for the upcoming fiscal year 2015-2016 (FY15-16).

Previous years' real GDP growth estimates were typically overstated, with achieved real GDP growth figures missing their mark annually from FY09-10 to FY13-14.

The NEC approved a Rs1.514 trillion development outlay including:

Rs700 billion as funds towards the Public Sector Development Programme (PSDP)
Rs814b as funds towards the provincial Annual Development Programme (ADP)

The council meeting also decided on FY15-16 growth targets for the agricultural and manufacturing sectors, with the former set at 3.9pc and the latter at 6.1pc.

The target for exports in FY15-16 has been set at $25.5b.

The meeting of the council was given an overview of Pakistan's economy in FY14-15 in addition to being briefed about the budget outlay for FY15-16.

The meeting approved the macroeconomic framework for the 2015-2016 Annual Plan.

A progress report of the Central Development Working Party (CDWP) from April 2014 to March 2015 was also presented before the NEC and the Planning Commission was authorised to publish the 11th five-year plan.

Nawaz Sharif directed that funds for projects being financed by the federal government should be allocated to priority projects through coordination with provincial governments to ensure optimum utilisation of funds, and to reduce chances of duplication.

The meeting was attended by chief ministers of all four provinces; Governor Khyber Pakhtunkhwa; Chief Minister Gilgit-Baltistan; Ministers for Finance, Planning and Water, and Power; Finance ministers of all provinces, as well as Azad Jammu and Kashmir; Secretaries for the ministries of Finance and Planning, and other senior government officials.

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Comments (25) Closed

Pramod

Jun 01, 2015 07:07pm

Pakistan should invest on education to achieve the growth rate and should separate religion from state education . it might work for gulf countries because of Petrol but not in countries like Pakistan.

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Kazim Reza

Jun 01, 2015 07:26pm

Growth target touches the reality.Thanks to prime minster of Pakistan for his commitment.A week before he cautioned on projecting unattainable growth rate.

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PakistanFirst

Jun 01, 2015 07:34pm

once again, no concentration on exports -- how does Pakistan aim to achieve rapid development without large increases in export? For comparison purposes, nations like Bangladesh and Egypt are exporting more than us.

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Muhammad iqbal

Jun 01, 2015 07:50pm

Approving GDP growth target and achieving that target are two different things. We know it is consolation and nothing else

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Asad

Jun 01, 2015 07:57pm

Slump down from 8% in 2005 to 5.5% in 2015.

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Sunnyblue

Jun 01, 2015 08:09pm

I am not sure if there are any experienced and well educated economists left in Pakistan to make these kinds of bold and bogus growth claims. National economies grow by investing investing in education, infrastructure, energy, production, innovations, empowerment, exports and free trade. With its borders closed on all sides, energy and water shortage i see a very meager growth barely keeping up with population growth and inflation. Economies ruled under theocratic laws do not grow much.

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Aurangzeb

Jun 01, 2015 08:35pm

If they spend 75% of allocations that would make a lot of difference to poor.

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Ihsan

Jun 01, 2015 09:12pm

Good sign.... Actual and targeted were pretty close last year. ...Good Work...PML (N)

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Jun 01, 2015 09:26pm

Thank you very much, the members of the National Economic committee for taking your time off, to come to Islamabad, to approve 5.5.% GDP growth for next year. Your job was to set a goal, which you did. Providing Power and gas to industries and fertilizer plants is certainly not one of your responsibilities. Same with water for agriculture. I am sure, you must be believing in some miracle to happen, to achieve this goal. Good Luck.

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M.Saeed

Jun 01, 2015 11:28pm

Just eliminate terror and see the growth rate going sky-high.

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ZeeZoo

Jun 02, 2015 12:18am

For the first Time, i can see projected rate approaching the actual and the trend seems very positive.With the interest rates at record low,and numerous business friendly decisions,InShaAllah , in a few years we will see a very better picture on economic front.

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AJamal

Jun 02, 2015 12:37am

It should be made clear that in the last two years, every growth target has been missed with exports decreasing in FY 2014-15. This is a damning indictment of Mr Dar performance.

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jason

Jun 02, 2015 01:49am

5.5 percent? Good Luck

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mohd

Jun 02, 2015 02:06am

Good luck- Happy to see healthy GDP growth in 2014.

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Jun 02, 2015 04:27am

Wow!!! What a bold decision by the committee. Make decisions and wish it to happen. Does not matter, if industries do not get power and gas. No problem, if there is no irrigation water for agriculture.

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Max

Jun 02, 2015 05:35am

Growth in every country is directly related to energy supply to keep homes and industry active. Coal power plants are closing down in USA, but did work for more than 100 years, Pakistan should approach US to deliver those shut down coal power plants to Pakistan. Pakistan should have nuclear energy plants in Karachi, rest of Sindh should get coal power plants due to unlimited coal resources; More Nuclear plants needed in Punjab and KP. Balochistan have extensive reserves of gas, should be utilized extensively in Balochistan, along with coal Power plants. Pakistan should work on improving exports ,

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AJamal

Jun 02, 2015 05:36am

@M.Saeed. To grow Pakistan needs capacity as well. There is no energy to increase production and irrigate land.

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Irfan M

Jun 02, 2015 05:41am

I don't think the government will achieve the 5.5% target. It's too optimistic considering our current state of affairs with regard to terrorism and electricity shortage etc. I would say the actual growth rate will be between 4 and 4.5%.

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I'm always right

Jun 02, 2015 06:37am

Dar targeted 7% for this year. Anything below 6% is unsustainable for the lives of Pakistanis. Bangladesh and India grow even faster and still look at how horrible living standards are there. Don't get how we gain satisfaction from such small numbers.

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iTellYou

Jun 02, 2015 06:42am

I hope this "council" factored in the potential interest rate increase by the US fed because there would be FDI flight out of the developing countries including Pak. No FDI no hope for higher growth.

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Zak

Jun 02, 2015 07:02am

Pakistan has the power to achieve triple digit growth.

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Anon

Jun 02, 2015 07:24am

Priority should be education, health and security. Improvements on these fronts would automatically lead to investment and improved economy. Has anyone of them seen the public sector schools, colleges, universities and hospitals. The conditions there are miserable. Really people working in these sectors must be saluted for bearing with poor conditions and working environment.

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NotEnemy

Jun 02, 2015 08:12am

@PakistanFirst , Export What? and who is buying. It takes time to convert an importing economy to exporting. If Pakistan can not increase its deeper then ocean friend China then you have problem. Its 2nd biggest market could be India with whom they do not want to deal with. USA will buy only textile but in this field they can not compete even with Bangladesh. So just by declaring to improve your GDP will not increase it. You have to have right policies.

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NotEnemy

Jun 02, 2015 08:14am

@Muhammad iqbal , You are right Iqbal sahib.

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NotEnemy

Jun 02, 2015 08:21am

@M.Saeed , That is good point. So instead of putting all your attention to terrorism which is their own creation, you have to focus on economy

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