ISLAMABAD              -       The National Economic Council (NEC) is likely to meet on Monday (tomorrow) to finalise the national development outlay and macroeconomic targets for the next fiscal year.

The NEC meeting, which would be chaired by Prime Minister Imran Khan, would consider the recommendations of Annual Planning Coordination Committee that proposed the national developmental outlay of Rs1.413 trillion for the fiscal 2020-21. National development outlay consists of federal development outlay (PSDP) of Rs536.111 billion, block allocations of Rs94 billion and provincial development outlay (ADP) of Rs783 billion.

The NEC would also approve the macroeconomic targets for the upcoming fiscal year. According to the documents, the NEC would set the GDP growth at 2.3 percent. The GDP growth would be achieved with contributions from agriculture (2.9 percent), industry (0.1 percent) and services (2.8 percent).

The agriculture sector is targeted to grow by 2.9 percent next year against 2.7 percent growth this year which missed the 3.5 percent target. This would be supported on the basis of expected contributions of important crops (2.2 percent), other crops (2.1 percent), cotton ginned (1.3 percent), livestock (3.5 percent), fisheries (2.1 percent) and forestry (1.5 percent). Industrial sector is targeted to grow by 0.1 percent during 2020-21. Manufacturing sector is targeted to contract by 0.7 percent based upon LSM contraction of 2.5 percent, and small scale & household manufacturing sector growth of 6.0 percent. Moreover, construction and electricity generation & gas distribution are targeted to grow by 1.4 percent and 3.5 percent, respectively. Mining and Quarrying sector is projected to grow by 0.5 percent.

Average inflation during 2020-21 is projected at 6.5 percent on the basis of subdued demand and suppressed commodity prices in the international markets and second round effect of Covid-19 related economic implications. However, exports and remittances are likely to face challenging global environment. Trade deficit is projected at 7.1 percent of GDP. Current account deficit is projected to be at 1.6 percent of GDP in 2020-21 with projected growth of exports and imports of 1.5 percent and 1.1 percent respectively.

Service sector is targeted to grow by 2.8 percent in 2020-21, supported by growth of 1.4 percent in wholesale & retail trade, 1.5 percent in transport, storage & communication, 3.4 percent in finance & insurance, 4.0 percent in housing, 4.6 percent in general government services and 4.2 percent in other private services.