Economic Survey 2021-22

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The government of Pakistan has launched Economic Survey 2021-22. Global coordinated efforts gradually brought the pandemic under control and the world is recovering from the devastating effects of COVID-19. However, the Russia-Ukraine conflict has created new risks to economic growth and posed significant uncertainty about the economic outlook. The economic impact of the conflict is manifesting in terms of higher commodity prices, disrupted trade and supply chains, lower business confidence, and increased investors’ uncertainty. The fallout of conflict will contribute to a significant slowdown in global growth in 2022 and 2023. The global economic growth is projected to slow from an estimated 6.1 percent in 2021-22 to 3.6 percent in 2022-23. The negative economic consequences of the war in Ukraine are spreading across the world and Pakistan is also among the vulnerable countries. The risk for Pakistan’s economy has been elevated by high international commodity and oil prices, significant pressure on external side, and squeezed fiscal space. According to provisional estimates, Pakistan’s economy in FY2022 has witnessed an estimated GDP growth of 5.97 percent. This unsustainable growth has triggered macroeconomic imbalances. Unfortunately, the weak economic management of the previous government has resulted in the deterioration of the exchange rate, high inflation and widened the twin deficits, thus bringing Pakistan to the verge of a financial crisis. Besides growth, the government is also taking care of its solemn obligation towards the poor segments through a social safety program and targeted subsidies. The government is taking measures to extend relief to the less well-off citizens through Benazir Income Support Programme (BISP).

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