NEC to approve 3.3pc GDP growth for next fiscal

ISLAMABAD: The National Economic Council (NEC), which will meet on Thursday, is to approve 3.3 per cent GDP growth projection for next fiscal year 2009-10.

Sectors, like agriculture with projected growth of 3.8 per cent, manufacturing (1.8 per cent) and services 3.9 per cent, would contribute to GDP growth. Keeping in view the economic scenario in the next financial year, the GDP at market price would inflate by 12.9 per cent. According to the working paper for the proposed annual plan for 2009-10, the agriculture sector is projected to grow by 3.8 per cent with major crops growing 3.5 per cent, livestock 4 per cent, fishery 2.4 per cent and forestry 1 per cent.

The manufacturing sector, the paper showed, is projected to achieve a growth rate of 1.8 per cent during 2009-10, which is based on the assumption that energy sector shortages will ease to a certain extent and export competitiveness will improve through appropriate incentives and policy measures.

Based on growth in agriculture and manufacturing, combined with expected contraction of 5 per cent in real imports, the services sector is likely to grow by 3.9 per cent with wholesale and retail trade growing by 3.3 per cent and finance and insurance by 3 per cent.

Inflation for 2009-10 has been projected at 9 per cent against expected CPI inflation of 20 per cent in 2008-09.

This projection has been made keeping in view the improvements in macroeconomic indicators and weakening in international oil and commodity prices.



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