Pakistan expects GDP growth to slow to 5% amid fiscal consolidation

Residents read newspapers near a market which was sealed by the authorities in Rawalpindi, Pakistan, on June 21, 2020. (AFP/File)
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Updated 05 June 2022
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Pakistan expects GDP growth to slow to 5% amid fiscal consolidation

  • Government seeks to bring down deficit through expenditure management and revenue enhancement
  • PM Sharif who took over from ousted premier Khan says his administration inherited a dire economic crisis

ISLAMABAD: Pakistan GDP growth will slow to 5 percent for the upcoming fiscal year beginning on July 1, from 5.9 percent in the outgoing year, following budgetary tightening aimed at winning International Monetary Fund (IMF) support, the government said on Saturday.

The planning ministry made the estimates ahead of the annual budget to be presented on June 10.

“Keeping in view external and local uncertain economic environment, GDP growth will slightly taper off and is envisaged at 5 percent for 2022-23 on the back of agriculture (3.9 percent), manufacturing (7.1 percent) and services sector (5.1 percent),” said the ministry in a working paper seen by Reuters.

The paper said the fiscal consolidation will be pursued to bring down the deficit through a combination of expenditure management and revenue enhancement.

Pakistan’s foreign reserves have been on a steep decline in recent months — falling to $9.7 billion, less than 45 days of imports — and its double digit inflation and a widening current account deficit have put it in a tight spot.

Moody’s has changed Pakistan’s outlook to negative from stable.

Pakistan has been waiting for the IMF board to clear a seventh review to resume a $6 billion rescue package signed in 2019 after both sides concluded talks in Doha last month.

The paper said the fiscal deficit for the July-March portion of the outgoing fiscal year had widened to 4 percent of GDP, compared to 3 percent of GDP for the corresponding period last fiscal year.

The current account posted a deficit of $13.8 billion (3.5 percent of GDP) in July-April of the outgoing financial year, it said.

Average inflation was recorded at 11.3 percent during July-May of the current fiscal year, as compared to 8.8 percent in the comparable period of the previous year.

The new government of Prime Minister Shehbaz Sharif who took over from ousted premier Imran Khan in April says that it has inherited a dire economic crisis.


Pakistan bowler Tariq and his unusual delivery courts controversy at the T20 World Cup

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Pakistan bowler Tariq and his unusual delivery courts controversy at the T20 World Cup

  • The 28-year-old offspinner’s unconventional bowling action has already mesmerized some of the big names in shortest format of game
  • It has seen Tariq taking three wickets against an inexperienced the US in Sri Lanka this week in what was his first T20 World Cup game

ISLAMABAD: With a momentary pause in his delivery and his statue-like pose at the crease, Pakistan spin bowler Usman Tariq has created plenty of attention at cricket’s Twenty20 World Cup.
Just enough, it seems, to throw off opposing batters.

With it has come a fair share of controversy — that his pause-and sling style of bowling is an illegal delivery, or in cricket parlance, chucking. He’s already been reported twice, but cleared, by Pakistani cricket authorities.

The 28-year-old offspinner’s unconventional bowling action has already mesmerized some of the big names in shortest format of the game and has seen him taking three wickets against an inexperienced United States in Sri Lanka this week in what was his first T20 World Cup game.

As is often the case in cricket, the reasons for Tariq’s potential illegal delivery are complicated.

First there is the so-called “15-degree debate” — that bowlers cannot exceed the ICC’s 15-degree elbow flex limit, which is nearly impossible for on-field umpires to judge accurately in real time.

Another talking point has been the pause in Tariq’s delivery stride. Some critics, including former India cricketer Shreevats Goswami, compare it to a soccer penalty run-up that would be ruled illegal if the shooter stops midway.

BAFFLING THE BATTERS

Batters like Cameron Green of Australia and South African Dewald Brevis are a few notable players that were flummoxed by Tariq’s bowling action.

Power-hitter Brevis fell to Tariq’s only second ball in T20 international cricket in November. Green shook his head in disbelief and mocked Tariq’s bowling action close to the boundary line — but later apologized — when he walked back after slicing a wide delivery straight to the cover fielder during Pakistan’s 3-0 sweep of Australia at Lahore.

Tariq’s rise in T20 cricket has also seen him taking a hat-trick at Rawalpindi when he took 4-18 against Zimbabwe during the tri-series in November. He has taken 11 wickets off his 88 balls in only four T20 internationals.

It was no surprise when selectors included Tariq in the 15-man T20 World Cup squad, knowing that pitches in Sri Lanka would suit slow bowlers more than pacemen.

Tariq’s journey to top-level cricket wasn’t a smooth one. He was twice reported for suspect bowling action during country’s premier domestic T20 tournament — the Pakistan Super League — over the last two seasons, but on both occasions he was cleared after testing at the

National Cricket Academy in Lahore.

“I have two elbows in my arm,” Tariq said. “My arm bends naturally. I have got this tested and cleared. Everyone feels I bend my arm and all that. My bent arm is a biological issue.”

Tariq has also featured in the Caribbean Premier League and with his deceptive bowling action he was the tournament’s second-highest wicket taker for champions Trinbago Knight Riders.


LONG PAUSE A PROBLEM

“The batters are struggling to read Tariq because of the long pause the moment he steps on the bowling crease,” former Pakistan captain Sarfaraz Ahmed, who has played with Tariq in the PSL’s Quetta Gladiators, told The Associated Press.

“The long pause disturbs all the concentration of batters and when he bowls a fastish (delivery, after a long pause), or even a slow ball, it leaves the batters clueless.”

Less than three months ago, Tariq said he had dreamed about playing against archrival India. And after Pakistan withdrew its boycott of Sunday’s game in the T20 World Cup, Tariq’s dream could come true if Pakistan uses five spinners against India.

“I wish there’s a match against India and I can win the game for Pakistan single-handedly,” Tariq said then. “My coaches have injected this thing in me that ‘you have to win matches single-handedly’.”

On Sunday against India, Tariq could do just that.