Stagflation keeps growth low at 2.4%

Pakistan’s economy remained in stagflation for the second consecutive year, growing by 2.4% amidst a 26% inflation rate and high poverty during the outgoing fiscal year—an outcome reflecting harsh ground realities that compelled the government to slow down the economic wheel. The 109th meeting of the National Accounts Committee (NAC), responsible for approving the nation’s output, savings, and investments, was chaired by Secretary Ministry of Planning, Awais Manzur Sumra, on Tuesday. The Prime Minister Shehbaz Sharif-led Pakistan Democratic Movement (PDM) government had set an annual growth target of 3.5% for the current fiscal year 2023-24, ending on June 30. Following the NAC meeting, the Ministry of Planning announced that the Gross Domestic Product (GDP)—the measure of goods and services—grew by 2.38% during the outgoing fiscal year, slightly below the official target but better than projections by International Financial Institutions.