Charter of the Economy Others** Balance of Payments Foreign Exchange Reserves Exchange rate***(Rs/$) Real Effective Exchange Rate 1.4 2.7 18.1 104.23 117.34 2.2 -1.9 16.1 104.70 121.01 3.7 -6.1 9.8 109.84 107.48 7.5 -1.5 7.3 136.09 90.97 -0.2 5.3 12.1 155.16 93.04 -2.1 5.6 17.3 156.16 99.85 (2010= 100)|(end year) * of goods|** inflows/ outflows of SBP, Commercial Banks and others|*** Average of year Source: SBP A primary area of concern is that with the external debt approaching$120 billion, annual debt repayment has risen exponentially and trebled from$4 billion in 2015-16 to an anticipated$12 billion in 2020-21. As loans mature, especially those from international commercial banks, the debt repayment obligations will continue to rise rapidly. This will mean that Pakistan’s external financing needs could exceed$16 billion to$20 billion annually in coming years. The current perception is that the foreign exchange reserves are relatively high. They stand at over$17 billion, enough to provide import cover for more than three months. But they include$4.7 billion of other Central Bank deposits and swap funds with the SBP, and the short-term borrowing of$4.6 billion from the foreign currency deposits of the commercial banks. As such, the inherent position of reserves remains fragile. The rupee has started gradually in value since March 2020. 1.2. Targets Based on the above the key targets identified are as follows for the Charter of the Economy from 2020-21 to 2024-25. Growth • Increase in GDP growth rate from almost 4 percent in 2020-21 to 6 percent in 2024­25. • Increase in the growth rate of the agricultural sector from 2.8 percent in 2020-21 to 4 percent in 2024-25. • Increase in the growth rate of the industrial sector below 4 percent in 2020-21 to 8 percent in 2024-25. INVESTMENT • Rise in the overall rate of investment from under 14 percent of the GDP in 2020-21 to 17.5 percent of the GDP in 2024-25. 10