Rs549.7b for PSDP

ISLAMABAD - The Annual Plan 2008-2009 is silent over the arrangements for the investment to attain the projected 5.5 percent increase in GDP growth, being expected to stay around the last year's level of 21.5 percent of GDP.
The budget documents indicate that the Annual Plan is looking forward to the 3.5 percent growth in agriculture, 6.1 percent manufacturing and the services sector each, projecting an investment of Rs 2638.8 billion, around 17 percent of higher than last year whereas the inflation has marked as gray area, which would be sensitivity to the international price movement.
The documents point out that the exports are expected to grow by16 percent to $ 22.9 billion whereas the imports would cross 6.5 percent of $ 37.2 billion following the higher volume of import of food items and POL. The trade account is projected to be in deficit of $14.3 billion in 2008-09 whereas the remittance has been projected at $7.7 billion.
The manufacturing sector is projected to achieve a growth of 6.1 percent during 2008-09 with the expectations that the energy shortage will subside to a certain extent and export competitiveness improves through appropriate incentives and policy measures.
Accordingly, the documents says that large scale manufacturing is targeted to grow by 5.5 percent against the actual growth of 1.8 percent in fiscal 2007-08, with small scale manufacturing growth at 8 percent.
The mining and quarrying sector is projected to grow by 5 percent based on 7.6 percent increase in extraction of natural gas, crude oil for 1.9 percent, coal 15.2 percent, limestone 3.5 percent and rock salt 7 percent respectively besides the construction sector expected growth of 8 percent in the fiscal 2008-09
Regarding the services sector, the documents suggest that the services sector would continue to be the main contributor towards the increase in economic growth for fiscal 2008-09. The sector is expected to contribute the growth rate of its sub-sectors, including transport, storage and communication for 4.5 percent, wholesale and retail trade 5.4 percent, finance and insurance 12 percent, ownership of dwellings by 3.5 percent, public administration and defense by 4 percent and social community and personal services by 7 percent.