Prime minister felicitates govt on achieving 5.37% GDP growth in three years

ISLAMABAD: Prime Minister Imran Khan on Friday congratulated his government on achieving the GDP growth of 5.3 per cent which led to substantial jobs creation and also raised per capita income.

The prime minister wrote on Twitter that the success of the government’s economic reforms was also recognised globally.

He also cited a report of Bloomberg which predicted that Pakistan would sustain a high growth trajectory and employment levels.

Moreover, the prime minister also said that since the outbreak of the Covid-19 pandemic, Pakistan had been ranked amongst the top three countries on the normalcy index.

He said that the Economist magazine, in its latest normalcy index also indicated that during the pandemic, Pakistan simultaneously saved jobs as well as lives.

According to Bloomberg, Pakistan’s GDP grew 3.9 per cent in the fiscal year ended June 2021, swinging from a 0.5 per cent contraction in fiscal 2020, but leaving a slight negative output gap of 0.8 per cent.

“We see the output gap turning positive for the next few years before it converges to zero,” it added.

Bloomberg also projected a gradual decline in the unemployment rate through 2030 to its long-term historical average of 5.5 per cent. It also projected a gradual rise in the participation rate through 2050.

The government has launched a comprehensive youth employment programme with a focus on imparting market-oriented skills.

Investment growth is expected to pick up in the current decade, spurred by inflows related to China-Pakistan Economic Corridor (CPEC) projects. Meanwhile, the tax reforms, driven by the outcome of negotiations with the International Monetary Fund (IMF), are also being implemented.

This should increase tax revenues, making space for higher public investment.