Pakistan Sets 3.6% GDP Growth Target for Next Fiscal Year

(Bloomberg) — Pakistan set a 3.6% economic growth target for the next fiscal year as it discusses a fresh loan program with the International Monetary Fund.

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Data released by a government committee ahead of the annual budget due on June 10 envisages a faster expansion than this year’s 2.4%. The World Bank expects Pakistan’s economy to grow less than 3% in the next two years.

The country, which has a history of missing growth targets, is seeking to keep its economy afloat after dodging a default last summer. It’s going from one IMF program straight into another loan to keep up with debt payments.

The government’s Annual Plan Coordination Committee envisaged growth at 2.4% for the fiscal year ending June 30, more than the 2% forecast by the IMF. A detailed breakdown foresees higher growth in both industry and services.

The committee also recommended a 1.22 trillion-rupee ($4.4 billion) development budget for government spending on megaprojects, compared with 950 billion rupees ($3.4 billion) last year, according to a statement by the Planning Commission., which said only 40% of the amount for this year has been used.

(Updates with sectoral growth forecasts, development spending.)

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