Pakistan Budget News / Pakistan failed in this matter, the whole game came out before the budget

Vikrant Shekhawat : Jun 12, 2024, 09:55 AM
Pakistan Budget: Everyone knows the economic condition of Pakistan. Pakistan's budget is going to be presented. Before that, the economic picture of Pakistan has come to the fore. In that, it has been seen to fail completely in one case. Pakistan has failed to achieve the economic pace figure set by Pakistan. The biggest reason for this failure is the poor performance of the industry and service sector.

Pakistan's inflation figures were revealed in the month of May. In which a lot of improvement was seen. After which the Central Bank of Pakistan has also cut the policy rate in the month of June. Pakistan says that there has been some improvement in their economy compared to last year. But they have missed the growth figures. Let us see what kind of figures have been presented by Pakistan.

Pakistan failed

Pakistan has failed to achieve its growth rate target of 3.5 percent for the financial year 2023-24 and its growth rate has been only 2.38 percent. The Pakistan government released the economic review of the financial year 2023-24 a day before presenting the budget, saying that Pakistan's economy grew at the rate of 2.38 percent during July 2023-June 2024. Finance Minister Muhammad Aurangzeb presented it in a press conference.

According to the review, despite the actual GDP being lower than the target in the financial year 2023-24, it came into the positive zone due to the government's prudent policy management and gradual economic reforms. Pakistan's GDP had negative growth in the financial year 2022-23. This growth was less than the estimated target of 3.5 percent for the outgoing year and the government failed to achieve it, mainly due to the poor performance of industries and service sectors.

How did which sector perform

The Pakistani Finance Minister said that the agriculture sector has performed better than all other sectors by registering a growth of 6.25 percent against the target of 3.5 percent. However, the growth rate of industrial development was only 1.21 percent. The services sector also achieved a growth rate of 1.21 percent against the target of 3.6 percent. Aurangzeb said, the agriculture sector has emerged as the main source of economic growth in the financial year 2023-24 with the highest growth in the last 19 years.

The fiscal deficit was recorded at 3.7 percent in the period under review, which is the same as last year. During this period, Pakistan's trade deficit stood at 4.2 percent. The Pakistan government is going to present the budget for the next financial year on Wednesday. Pakistan's financial year starts from July and runs till June.

India's growth rate is the highest in the world

On the other hand, if we talk about India, India's GDP growth rate was 8.2 percent in the last financial year. Which was much higher than the estimate. Whereas in the fourth quarter, India's growth was 7.6 percent. Which was much lower than the first, second and third quarters. Recently, RBI in its MPC has projected India's growth rate for the financial year 2025 at 7.2 percent, which is about one percent less than the figures of the last financial year. According to experts, the size of the capital expenditure of the Government of India, it seems that India will go far ahead of its target.

World Bank also praised

On the other hand, the World Bank has also praised India's economy. The World Bank said in its report that India will remain the fastest growing major economy, registering a stable growth of 6.7 percent in the next three years. According to the World Bank's latest Global Economic Prospects Report, economic growth in India is expected to increase to 8.2 percent in the financial year 2023-24. This is 1.9 percent more than the previous estimate of the World Bank in January.

The report says that India will remain the fastest growing country among the world's largest economies, but its expansion is likely to slow down. After high growth in FY 2023-24, stable growth is projected at an average of 6.7 per cent per annum for the three fiscal years starting from 2024-25. The World Bank said that inflation in India has remained within the Reserve Bank's prescribed range of two to six per cent since September 2023. However, regional inflation in the South Asia region, except India, remains high despite being below high levels.