Karachi, May 25 (IANS) Pakistan’s economy is set to grow at 4.5 percent in fiscal 2010-11 beginning July 1 against the 4.1 percent during the current fiscal, a media report said Tuesday.
Agriculture growth in the next fiscal is targeted at 3.8 percent, manufacturing growth at 5.6 percent and service sector growth at 4.7 percent, The News reported on its website ahead of the June 5 presentation of the budget for 2010-11.
Inflation for 2010-11 is targeted at 8 percent, compared with the central bank’s forecast of between 11 percent and 12 percent for the current fiscal.
The government is aiming at a fiscal deficit of between 4 and 4.2 percent of the GDP in 2010-11 compared to an earlier forecast of 5.1 percent.
The government has also decided to eliminate subsidies on power, fertiliser and sugar in the budget for the next fiscal year and to replace the general sales tax with a 15 percent value added tax.
This apart, the government is expected to impose a capital gains tax on the purchase of stocks made on or after July 1.
