ISLAMABAD: The government is all set to get approval on macroeconomic targets by envisaging GDP growth at 4.4 percent and inflation target at 8 percent for the next budget 2013-14.
The newly-elected Prime Minister, Nawaz Sharif, is going to reconstitute National Economic Council (NEC) after swearing in of federal ministers in next few days. The NEC will grant its approval on macroeconomic targets for the next financial year.
The Annual Plan Coordination Committee (APCC) will not meet this year as there is constitutional requirement to convene meeting of this forum. Keeping in view existing stagflation in the country, one possible way for coming out from the prevailing situation can be jump-starting economic activities by booting public sector investment provided the government overcomes energy crisis in an effective manner as this policy can result into promoting economic activities in the country.
But there is another point of view exist within the planning managers of the country that there is need to ensure coming out of public sector from different sectors of economy as more involvement of public sector investment will simply means crowding out of private sector which has already been witnessing shrinking share in the country’s economy.