Islamabad: Despite global recession, the Pakistan’s economy has registered positive indicators as the exports have raised more than 7%, remittances more them one billion dollars per month and revenue collection by FBR during the first seven months remained about 26% more than the corresponding period of the last financial year.
This was stated by the Advisor on Finance, Dr. Abdul Hafeez Shaikh during a presentation given to the Prime Minister and attended by Deputy Chairman Planning Commission, Dr. Naddem ul Haq and Senior Officials of the Ministry of Finance, Planning and Development Division and the FBR.
The Prime Minister appreciated the efforts of the finance team and provided guidance for the forthcoming budget which should reflect a focus on economic stability, prudent fiscal policy, generation of economic opportunities for the youth and protection of the vulnerable groups through further control of inflation and social safety net programme.
The meeting focused on four basic areas, overall state of the economy, expenditure management, Revenue expansion and the public sector development Programme (PSDP).
The meeting was briefed that the projected growth rate in GDP is 3.6% and it is likely to be more than the target. This will be attained despite the floods this year in the province of Sindh, increased transfers of revenue to Provinces and challenges arising out of the global situation.
On inflation, the Prime Minister was apprised that due to the right mix of policies inflation will be lower than the budgetary projection of 12% and the three prices index i.e. CPI, WPI and SPI are approaching single digit.
Due to austerity measures and aggressive expenditure management expenditure in the first seven months of the current fiscal year have been 53% as compared to the target of 58% which is 5% low.
Overall position of the exports sectors shows that exports in the first seven month have been 14 billion dollars thus registering an increase of 7% as compared to the corresponding period of the previous financial year.
The Prime Minister was briefed that remittances by the overseas Pakistanis remained at 7.4 billion dollars in the first seven months registering 21% increase.
The briefing on revenue side highlighted the strong revenue collection so far amounting to Rs. 975 billion with an increase of 26% as compared to the corresponding period of the last fiscal year. The target of Rs. 1952 billion for the current financial year is likely to be met due to the continuous expansion of the tax net and administrative efforts.
The Prime Minister was apprised that PSDP of Rs. 300 billion will be met in its entirety and 100% utilization will be achieved. In the first seven months, Rs.221 billion have already been released to ensure continuity of development programme on the projects. The remaining amount will be released as per the law.
The PSDP cover important projects such Diamer-Basha Dam, Mangal Dam Raising Project, Neelum-Jehlum Project, Lawari Tunnel Project, several National Highways and vertical programmes in the social sector under the Federal Government which remained with the Federation after the devolution process.
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