ADB to give $2b to propel Pakistan economy

“Lack of economic diversification and structural transformation caused Pakistan to lose the track of average 7 per cent economic growth of past seven years,” said the sources and added, “The people might term it a donor-assisted package but it offers all what is required in current deteriorating economic situation.”

The overarching aim of the AETP is to achieve and sustain 8 per cent economic growth from 2010 to 2020. The programme ensures to expand social safety net up to 5 million people by the end of the current fiscal year. The number will almost be doubled by 2010, as the government is giving sound guarantees to the international development partners.

The banking sector credit to the private sector will jump to 42 per cent of the Gross Domestic Product in next ten years from the present 27 per cent. Correcting another imbalance, the plan talks about to increase the share of manufacturing sector from existing 19 per cent to 21 per cent in 2010 and ultimately 30 per cent of the GDP by 2020.

Likewise, the share of high-value added outputs in exports would be increased to 15 per cent in 2012 and up to 40 per cent in 2020. The government will also introduce a new industrial policy aimed at diversifying and deepening industrial and export base.