The government is working to increase the Gross Domestic Product (GDP) growth to 7 per cent for financial year 2017-18 with a considerable improvement in the agriculture, industry and services sectors, as compared to a target of 6.5 per cent set for the current fiscal year. According to annual report of National Economic Council for financial year 2014-15, which was presented in the National Assembly on Wednesday, the growth of agriculture sector is projected at 4 per cent of the GDP in fiscal year 2016-17 and 2017-18.
The government has also set a targeted growth of industry sector to 8.2 per cent in 2016-17 and 9 per cent in 2017-18 and for the services sector, while the government has projected the GDP growth to 6.8 per cent in 2016-17 and 7.3 per cent in 2017-18.
The total investment in the country is projected to be 21.1 per cent of the GDP in 2016-17 and 22.8 per cent of the GDP in 2017-18, while the External Resources Inflow (net) are estimated to be 1.1 per cent of the GDP in 2016-17 and 1.5 per cent in 2017-18.
The report further said that despite limitations of available fiscal space, as a symbolic start the provinces may be allowed a domestic borrowing limit of 0.5 per cent of the GDP (Rs 153 billion) minus domestic loan of Rs 40.4 billion owed to the federal government, with a net limit of Rs 112.6 billion.
According to the break-up, net available limit for Punjab is Rs 61.75 billion, Sindh Rs 20.05 billion, Khyber Pakhtunkhwa Rs 16.88 billion and for Balochistan the limit is Rs 13.91 billion.
The federal government will continue assisting provinces to receive support from development partners, such as the World Bank and Asian Development Bank, and bilateral sources. Since these loans are contracted by the federal government, they are counted in the federal indebtedness, and no additional burden on overall Debt/GDP is entailed.
The report also says the federal government has paid Rs 12.06 billion to provinces on account of incentives on surpluses in provincial balances and a further amount of Rs 3.14 billion is to be paid in the coming days.
Under the Macroeconomic Framework (Current Market Prices), the GDP(bp) is projected to be Rs 37,129 billion in financial year 2017-18 as compared to Rs 32,579 billion in the current fiscal year; Indirect Taxes (Net) Rs 2,390 billion for 2017-18 as compared to Rs 2,078 billion in current fiscal year; GDP(mp) Rs 39,518 billion for 2017-18 as compared to Rs 34,657 billion in the current fiscal year; and net factor income from abroad Rs 2,198 billion in 2017-18 as compared to Rs 1,966 billion in the current fiscal year.
Under the Macroeconomic Framework (current market prices), the total resources/uses are projected to be Rs 42,328 billion for 2017-18 as compared to Rs 36,999 billion in the current fiscal year; total consumption for 2017-18 at Rs 33,318 billion as compared to Rs 29,675 billion in the current fiscal year; total investment at Rs 9,010 billion for 2017-18 as compared to Rs 7,324 billion in the current fiscal year; and national savings at Rs 8,398 billion for 2017-18 as compared to Rs 6,948 billion in the current fiscal year.
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