Pakistan’s economic and GDP growth projections for 2021
Pakistan has emerged as a powerful state in the previous two years. It has, however, advanced in many sectors, including economy, information technology, imports and exports, and so forth. The article provides a comprehensive review of Pakistan’s progress.
IT Sector Growth
According to Pakistan’s national bank data, the country’s information technology exports increased by 47 percent in 2020-21. In May, IT exports to increase by 59 percent year on year to $200 million. It was $126 million in May of the prior year. Telecommunication, computer, and information services are among the services available. In the fiscal year 2020-21, service exports increased to $5.3 billion, up from $5 billion the previous year. All of this occurred as a result of the software and hardware-related services. Pakistani freelancers have already mastered the global gig economy. Without a doubt, Pakistan has the world’s third-largest number of freelancers working on the most well-known online contracting platforms.
As a result, Pakistan capitalized on the growing need for ICT services at the time. On a trial basis, the ministry intends to focus on amazaon.com, the world’s largest marketplace. It will provide Pakistan with a new way to boost exports. Pakistan has made unprecedented success during the corona pandemic when compared to previous fiscal years. Exporters of goods and services were allowed to keep their export revenues in foreign currency accounts with the bank.
Growth in exports
In the fiscal year 2020-21, Pakistan experienced unprecedented achievement. In the same year, exports increased to $25.3 billion.
In the year 2014, it was $25.11 billion. The textile industry, according to the research, is a significant contributor to this expansion. It has accounted for more than half of the total increase in exports. Abdul Razaq Dawood praised the exporters for reaching such a significant milestone.
Pakistan’s foreign exchange reserves are increasing
Pakistan’s foreign exchange reserves increased at a 2.18 percent annual rate. In May 2021, raised it from $16980.8 million to $21313.6 million. Pakistan is gaining international recognition. It’s also worth noting that this year’s rate is the highest since 2000.
Growth of the GDP in 2021
Look at a country’s GDP to see where it is in terms of economic progress. If the GDP of the Government rate rises, it indicates that it is making progress. Pakistan has met its aim of 3.94 percent GDP, which is more than double the IMF’s forecast. GDP growth is expected to reach 1.5 percent in 2020/21, according to the IMF, and 1.3 percent according to the World Bank. The government has set a 4.8 percent GDP growth target for the fiscal year beginning July 1 as the economy recovers from the covid19 for Pakistan.
This expansion indicates that the renaissance that has already begun is gaining traction. The government forecast for the current fiscal year increased from the previous 3 percent and an original goal of 2.1 percent set in the last budget. Pakistan’s GDP figure for the fiscal year that ended in June was also revised from 0.38 percent to 0.47 percent. The government maintains that its economic measures during the pandemic were successful, citing the country’s decision to go into complete lockdown for a brief period as an example.
It is growth that is driven by production rather than consumption. In the aftermath of the pandemic, Pakistan’s economy looks to have fared well in comparison to its neighbors, according to Fitch Ratings. It stated that preliminary data projected 3.9 percent GDP growth in the current fiscal year, following a 0.5 percent contraction the previous year. However, it warned that the recent COVID-19 third wave might disrupt the positive trend into FY22 and that despite sluggish immunization, pandemic concerns remained.