NEC approves 4.8% economic growth target for FY22

On Monday, the National Economic Council (NEC) approved a “realistic” economic growth target of 4.8% for the next fiscal year amid a challenge to strike a balance between economic stability and growth to contain increasing inflationary and import pressures.

The 4.8% Gross Domestic Product growth rate for the fiscal year 2021-22 that approved by the NEC, the country’s constitutional economic decision-making body, was slightly lower than what Finance Minister Shaukat Tarin had sought.

Tarin wanted an over 5% economic growth target but Planning Minister Asad Umar opined in the meeting that the 4.8% target was a realistic one that had been worked out by the Planning Commission in consultation with other stakeholders, a participant of the meeting told The Express Tribune.

The agriculture sector is targeted to grow 3.5%, industry 6.5%, and services 4.7%. However, the NEC was informed that the economic growth target was subject to favorable weather conditions, vaccination drive to reach maximum population, and easing of Covid-related restrictions before the end of the first half of the next fiscal year.