According to an Economic Update and Outlook, with significant signs of economic recovery, the government would continue to follow the positive reform momentum to boost the competitiveness of the country’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery.
“Pakistan economy has shown significant signs of economic recovery with the fast resumption of economic dynamism,” says the monthly Economic Update and Outlook for June 2021.
According to the report, the government had introduced comprehensive measures to ensure sustainable growth.
“In the recent budget 2021-22, the government has taken growth-oriented initiatives and will continue to follow the positive reform momentum which will help to boost the competitiveness of Pakistan’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery,” it adds.
It says the recent economic recovery (real GDP growth 3.94 per cent in FY 2021) and government measures for inclusive and sustainable growth has built investor confidence.
Meanwhile, giving details about the performance of various sectors of the economy, the reports add, the large-scale manufacturing has surpassed its pre-COVID level during July-April FY 2021 and clocked its fifteen-year high growth rate of 12.8 per cent as compared to an 8.7 per cent slump last year.
On the other hand, the CPI inflation decelerated to 10.9 per cent in May 2021 compared to 11.1 per cent in the previous month due to a fall in fuel, electricity and food prices.
During July-May FY 2021, consumer inflation was recorded at 8.8 per cent compared to 10.9 per cent in the corresponding period a year earlier. The supply-related measures taken by the government along with strict monitoring and checks by the administration kept the prices in check all over the country.
The weekly SPI which captures the price movement of 51 essential items recorded an increase of 0.28 per cent for the week ended on 17 June 2021, after three weeks of consecutive decline.
Meanwhile, significant growth in tax revenues and prudent expenditure management resulted in better fiscal performance during the first ten months of the current fiscal year.
On the other hand, the net provisional tax collection grew by 17.5 per cent to Rs 4,170 billion as compared to Rs 3,549 billion in the comparable period of last year. The net collection has exceeded the target of Rs 3,994 billion by Rs 176 billion. During the period under review, the domestic tax collection grew by 17.3 per cent while revenues from customs duty increased by 18.7 per cent.
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News source: https://dailytimes.com.pk/781860/momentum-continues-to-lay-strong-foundation-for-economic-growth-outlook/
