ISLAMABAD: The government is likely to revise gross domestic product (GDP) targets due to devastating floods in the country which will slow down production in various sectors.
Sources said that the GDP growth will remain around 2.3 per cent during the fiscal year 2022-23 (FY23). The International Monetary Fund’s (IMF) had forecasted 3.5pc GDP in a recent report.
They said that the floods have severely impacted the agricultural sector in Sindh, Balochistan, and Khyber Pakhtunkhwa (KP). Therefore, growth in the agricultural sector is expected to decelerate by 0.7pc from the planned target of 3.9pc during the current fiscal.
Similarly, growth in the industrial sector is also estimated to come down by 1.9pc from the planned target of 5.9pc, while the post-flood growth of the services sector is estimated to be 3.5pc against the target of 5.1pc set for FY23.
According to sources, 37pc of the country’s population has been affected by recent floods, leading to an unprecedented increase in poverty and unemployment, which could ultimately push the poverty rate from 21pc to 36pc while the inflation rate can reach 30pc during the current fiscal year.
