Pakistan, April 21 -- The government said on Monday that Pakistan's economic growth would be affected during the current and next fiscal years due to an almost 20 per cent cut in development budget for fuel subsidies and inflationary impacts of global supply chain disruptions amid the war in the Middle East.

"This (cut in development budget) will have a negative impact and, coupled with international oil prices and inflation, will result in economic slowdown and affect our growth target of 4.2pc" for the current year, Planning Minister Ahsan Iqbal said while addressing a news conference.

This is the first official confirmation of lower than targeted economic growth, although international lenders have projected the growth rate between 3...