APCC Approves Rs 900 Bn Federal PSDP Outlay, Sets GDP Growth Rate Target At 4.8%

The Annual Plan Coordination Committee (APCC) Friday approved the federal Public Sector Development Programme (PSDP) outlay of Rs 900 billion, and set the Gross Domestic Product (GDP) growth rate target of 4.8 percent for the upcoming fiscal year 2021-22

ISLAMABAD, (UrduPoint / Pakistan Point News - 28th May, 2021 ) :The Annual Plan Coordination Committee (APCC) Friday approved the Federal Public Sector Development Programme (PSDP) outlay of Rs 900 billion, and set the Gross Domestic Product (GDP) growth rate target of 4.8 percent for the upcoming fiscal year 2021-22 "The size of federal PSDP for next year has been increased by 40 percent from Rs 650 billion to Rs 900 billion, which will be the highest development expenditure in one year in the history of Pakistan," Minister for Planning, Development and Special Initiatives Asad Umar told a press conference.

He said the increase in PSDP would attract more investment that would help raise the GDP growth rate by 0.25 percent.

Recalling the higher GDP growth of 5.4 percent during the previous government, the minister said during the ongoing year, the country's Current Account Deficit (CAD) stood at around US$20 billion or 6 percent of the total GDP.

On the contrary, he said, during the ongoing fiscal year, the Current Account would post a minor surplus while next year the CAD would stand at $2.

3 billion or 0.7 percent of the GDP.

"Our economy can afford the Current Account Deficit of up to 2 percent of the GDP," he maintained.

Asad Umar said the current year's GDP growth of 3.94 percent was based on productive sectors, however, during the previous government, the growth rated was consumption driven which was not a healthy sign for any economy.

He said the Gross National Product (GNP), in which remittances were also included, posted a record increase of 6.5 percent as compared to the previous year, which was the highest in 16 years.

He said the APCC, in its meeting today, also approved the annual plan for the upcoming fiscal year according to which the investment to GDP ratio was set at 16 percent as compared to the current year's ratio of 15.2 percent.

Similarly, he said, the remittances, which would reach to $29.1 billion by end of current year, would be increased to $31.2 billion by next fiscal year.