Economic performance in fiscal year 2019-20 during the first three quarters was weak but surely improving and set to achieve 3 percent growth rate despite risks posed by higher inflation and interest rates, negative LSM growth, modest export growth, below par resource mobilization, and tough IMF conditionality. External account improved significantly due to demand management measures, transition to a market-based exchange rate system, regulatory efforts to curb non-essential imports and increased inflow of workers’ remittances through formal channels. Closure of economic activity due to Covid-19 related health hazard the economic growth further dampened to negative 0.4 percent. Agriculture grew by 2.7 percent, industry contracted to negative 2.6 percent and services by negative 0.6 percent against the growth targets of 3.5, 2.3 and 4.8 percent, respectively.

To address the increasing urbanization issues and challenges, an allocation of approximately Rs18 billion has been made in 2020-21 for the physical planning and housing sector programmes to be implemented by various ministries, divisions and departments. The important programmes include urban contingency plans to mitigate and adapt to the crises; Sustainable Urban & Regional Development Plans and Smart Cities; ensure affordable housing for all (urban & rural) through construction of mass housing projects including 1 million houses under Naya Pakistan Housing Programme.