Pakistan’s finance minister foresees 2-3 percent economic growth amid enhanced agricultural output

Farmers pick strawberries at a farm on the outskirts of Peshawar, Pakistan on March 5, 2023. (AFP/File)

• The World Bank presented a more conservative picture by predicting a 1.7 percent growth rate earlier this month
• Dr. Shamshad Akhtar says the country is on road to recovery and has met first quarter targets agreed with IMF

ISLAMABAD: Caretaker Finance Minister Dr. Shamshad Akhtar expressed confidence on Saturday Pakistan’s economy was on the path to recovery and was expected to grow at the rate of 2 to 3 percent since it was likely to be fueled by improved agricultural activities in the country.
Akhtar issued the statement during a news conference in Islamabad where she shared the latest statistics to highlight the economic achievements of the interim administration which she said had taken charge amid tough financial circumstances.
The media talk was held just a few days ahead of an International Monetary Fund (IMF) delegation visit which is scheduled to begin on November 2 for an overall economic review under a short-term, $3 billion loan program which Pakistan secured in July this year.
“Local markets have rallied,” the minister said. “There is a change. We are getting positive economic data and positive economic sentiments are emerging as well.”
“Agriculture production is gaining momentum,” she continued. “Industrial activity is responding a bit slowly … But if agricultural output remains like this, our GDP growth is going to be within the range of 2 to 3 percent.”
Earlier this month, the World Bank issued a growth forecast of 1.7 percent which it said was below the rate of population growth.
Pakistan has faced a number of economic challenges in recent years that included low forex reserves, spiraling inflation and rapidly depreciating currency.
The finance minister acknowledged the World Bank had “floated a more conservative growth estimate.” However, she maintained the government was trying to support the agriculture and service sectors which was expected to have a significant impact on the economy.
She informed there was a year-on-year growth of 2.5 percent in the large-scale manufacturing sector in August.
“It is the first time in 14 months that this has happened,” she added.
Power generation sector had displayed a growth of 7.4 percent and production of tractors had increased by 45 percent between July and September.
Akhtar said Pakistan’s tax collection body had exceeded its first quarter target in the current fiscal year which had been determined by the IMF.
“We have effectively implemented the IMF program during the first quarter,” the minister told the media. “We will let them know we are on track with the program.”