Pakistan’s gross domestic product (GDP) growth rate would exceed five percent this financial year and growth of economy is necessary for the creation of two to three million jobs annually, Finance Minister Shaukat Tarin told the Senate on Friday.
He was responding to queries from senators related to the economy during question hour at the Senate sitting.
“As of now, we do not have any accurate data but there are very encouraging signs – that the GDP growth rate would exceed five percent. We have taken a number of steps for the economy to grow. Exports have been incentivised and revenues are increasing,” he said.
This fiscal year, Tarin said, government’s earlier estimates suggested that GDP growth rate would be between 4.8 percent to 5 percent, compared to 3.94 percent to 4 percent recorded in previous fiscal year.
“Our people need two to three million jobs each year. If economy is not allowed to grow, how these jobs would be created?” the minister said.
He said debt-to-GDP ratio was 87.6 percent last year which dropped to 79.7 percent in March 2021.
Taj Haider from Pakistan Peoples Party (PPP) said the figures from State Bank of Pakistan (SBP), reflected in the Economic Survey, suggested that debt-to-GDP ratio was 93 percent and not 87.6 percent.
“I have not seen this figure. We have the data which suggests that debt-to-GDP ratio was 87.6 percent, dropped to 79.7 percent,” Tarin responded.