farhan_9909
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ISLAMABAD: The economy of the country performed better than expected during the fiscal year 2013-14, however political stability was needed to sustain this progress, Federal Minister for Finance, Senator Mohammad Ishaq Dar said Wednesday.
Economic indicators including economic growth, per capita income, industrial growth, revenues, fiscal deficit, development spending, incorporation of companies, trade, remittances, exchange rate and foreign exchange reserves have performed positively during the year, he said while addressing a press conference here.
He said that international organization and renowned economists including Japan External Trade Organization (JETRO) and British economist Jim O'Neill have termed Pakistan second easiest destination for investments which has potential to become 18th largest economy of world by 2050, leaving behind many strong economies.
He said that Moody's rating have also been revised terming Pakistan stable.
"This shows that Pakistan is on right direction so it is duty of all citizens to support this development," he said adding that we collectively have to work for the development.
He quoted Moody as having reported that if the domestic political stability remains in tact and the structural reforms continue, the rates for Pakistan would further improve.
"This time the country could not afford any derailment, so this system should be allowed to continue and democracy must not be derailed," he remarked.
He said that the current government has turned around economy in just one year and was committed to continue work for macroeconomic stability.
Talking about the performance of the economy, Dar said, Economic growth rate remained highest in the last six years at 4.14 percent in 2013-14 as compared to 3.7 percent during last year.
Per Capita Income which was US $1340 in 2012-13 increased to $1386 in 2013-14, thus showing a growth of 3.43 percent.
Industrial sector growth which grew by 3.9 percent during July-May 2012-13 has registered a growth of 4.2 percent due to increased availability of electricity and better management of available gas supplies.
The minister said that inflation which averaged around 12 percent in the five years of pervious government has been recorded at 8.62 percent for 2013-14 despite undertaking significant fiscal adjustment in administrative prices and enhanced tax effort.
He said revenues collected by Federal Board of Revenue (FBR), which had registered one of the poorest performance in the recent past of a meager 3 percent growth in 2012-13 are up by 16.44 percent rising from Rs 1946 billion to Rs 2266 billion during 2013-14.
"This is a remarkable rebound in FBR performance, which would have been even better except for the steep appreciation of rupee that affected the customs revenues adversely", he remarked.
Ishaq Dar was of the view that fiscal deficit which was registered at 8.2 percent during 2012-13 has been brought down to only 5.7 percent during 2013-14.
The significance of fiscal adjustment, he said is enhanced when viewed in the context of development spending, which was recorded at Rs 441 billion in 2012-13 billion against the revised target of Rs 425 billion.
"Thus unlike in the past when adjustment was achieved by cutting the development spending, our government has made full development spending, which rose by 22.5% from Rs 360 billion during 2012-13", he added.
He said credit to private sector, which was registered at negative Rs 19.2 billion (flows) during July 1, 2012 to June 28, 2013 increased to Rs 378.8 billion for the same period during 2013-14, reflecting increased investment activity in the private sector.
Regarding government borrowings from State Bank of Pakistan (SBP), the Finance Minister said that this remarkable growth in private credit was made possible by a massive reduction in government borrowings from SBP.
Against a level of Rs 1446 billion during 2012-13, the borrowings were reduced to Rs 303 billion merely 20.95 percent of last years' level, he added.
Exports were recorded at $25.13 billion during 2013-14 compared to $24.46 billion in 2012-13, showing an increase of 2.73 percent.
Similarly imports were recorded at $45.11 billion during 2013-14 compared to $44.95 billion in 2012-13, showing a negligible increase of 0.35 percent.
He said remittances rose from $13.93 billion in 2012-13 to $15.83 billion during 2013-14 showing an increase of 13.7 percent.
He said exchange rate has depicted remarkable stability and appreciation during the tenure of the government as the rupee had pushed-up to Rs 110 in November 2013 but has been trading in the range of Rs 98-99 for nearly last four months.
Regarding foreign exchange reserves, Ishaq Dar said that the official exchange reserves had declined to a precarious level when in June 2013, they stood at $6 billion of which $2 billion were due to a swap that was payable in August,
He said as on June 30, 2014, the reserves stand at $14.113 billion comprising $9.096 billion of SBP and $5.017 billion of scheduled banks. These will be further rising at least to $15 billion before end-September.
He said Karachi Stock Exchange Index, which stood at 19,916 on May 11, 2013, the day elections were held has continuously scaled new heights and stood at 29,653 points on June 30, 2014 showing an increase of nearly 48.89 percent.
He said incorporation of new companies, which was recorded at 3953 during 2012-13 has increased to 4587 during 2013-14 showing an increase of 16.03 percent.
He said apart from the above indicators, a number of achievements including raising of $2 billion through Euro Bond, resumption of program lending by World Bank and ADB after 5 years and successful revival and resumption of the privatization program of the government have gone to break the barriers that had emerged in attracting foreign investment in the country.
To a question about the expected "Azadi March", Dar said that there was consensus among political parties that they would not let the system, democracy, parliament and constitution derailed.
If anybody has problem or complaints, that should be addressed by adopting legal and constitutional ways.
He said the government has already constituted Electoral Reforms Committee, having 33 members from all political parties to ensure transparency, adding the elections of 2013 were termed transparent by all media organizations as well as by international institutions.
Copyright APP (Associated Press of Pakistan), 2014
Economy performs better than expected, political stability is must to sustain progress: Dar
Economic indicators including economic growth, per capita income, industrial growth, revenues, fiscal deficit, development spending, incorporation of companies, trade, remittances, exchange rate and foreign exchange reserves have performed positively during the year, he said while addressing a press conference here.
He said that international organization and renowned economists including Japan External Trade Organization (JETRO) and British economist Jim O'Neill have termed Pakistan second easiest destination for investments which has potential to become 18th largest economy of world by 2050, leaving behind many strong economies.
He said that Moody's rating have also been revised terming Pakistan stable.
"This shows that Pakistan is on right direction so it is duty of all citizens to support this development," he said adding that we collectively have to work for the development.
He quoted Moody as having reported that if the domestic political stability remains in tact and the structural reforms continue, the rates for Pakistan would further improve.
"This time the country could not afford any derailment, so this system should be allowed to continue and democracy must not be derailed," he remarked.
He said that the current government has turned around economy in just one year and was committed to continue work for macroeconomic stability.
Talking about the performance of the economy, Dar said, Economic growth rate remained highest in the last six years at 4.14 percent in 2013-14 as compared to 3.7 percent during last year.
Per Capita Income which was US $1340 in 2012-13 increased to $1386 in 2013-14, thus showing a growth of 3.43 percent.
Industrial sector growth which grew by 3.9 percent during July-May 2012-13 has registered a growth of 4.2 percent due to increased availability of electricity and better management of available gas supplies.
The minister said that inflation which averaged around 12 percent in the five years of pervious government has been recorded at 8.62 percent for 2013-14 despite undertaking significant fiscal adjustment in administrative prices and enhanced tax effort.
He said revenues collected by Federal Board of Revenue (FBR), which had registered one of the poorest performance in the recent past of a meager 3 percent growth in 2012-13 are up by 16.44 percent rising from Rs 1946 billion to Rs 2266 billion during 2013-14.
"This is a remarkable rebound in FBR performance, which would have been even better except for the steep appreciation of rupee that affected the customs revenues adversely", he remarked.
Ishaq Dar was of the view that fiscal deficit which was registered at 8.2 percent during 2012-13 has been brought down to only 5.7 percent during 2013-14.
The significance of fiscal adjustment, he said is enhanced when viewed in the context of development spending, which was recorded at Rs 441 billion in 2012-13 billion against the revised target of Rs 425 billion.
"Thus unlike in the past when adjustment was achieved by cutting the development spending, our government has made full development spending, which rose by 22.5% from Rs 360 billion during 2012-13", he added.
He said credit to private sector, which was registered at negative Rs 19.2 billion (flows) during July 1, 2012 to June 28, 2013 increased to Rs 378.8 billion for the same period during 2013-14, reflecting increased investment activity in the private sector.
Regarding government borrowings from State Bank of Pakistan (SBP), the Finance Minister said that this remarkable growth in private credit was made possible by a massive reduction in government borrowings from SBP.
Against a level of Rs 1446 billion during 2012-13, the borrowings were reduced to Rs 303 billion merely 20.95 percent of last years' level, he added.
Exports were recorded at $25.13 billion during 2013-14 compared to $24.46 billion in 2012-13, showing an increase of 2.73 percent.
Similarly imports were recorded at $45.11 billion during 2013-14 compared to $44.95 billion in 2012-13, showing a negligible increase of 0.35 percent.
He said remittances rose from $13.93 billion in 2012-13 to $15.83 billion during 2013-14 showing an increase of 13.7 percent.
He said exchange rate has depicted remarkable stability and appreciation during the tenure of the government as the rupee had pushed-up to Rs 110 in November 2013 but has been trading in the range of Rs 98-99 for nearly last four months.
Regarding foreign exchange reserves, Ishaq Dar said that the official exchange reserves had declined to a precarious level when in June 2013, they stood at $6 billion of which $2 billion were due to a swap that was payable in August,
He said as on June 30, 2014, the reserves stand at $14.113 billion comprising $9.096 billion of SBP and $5.017 billion of scheduled banks. These will be further rising at least to $15 billion before end-September.
He said Karachi Stock Exchange Index, which stood at 19,916 on May 11, 2013, the day elections were held has continuously scaled new heights and stood at 29,653 points on June 30, 2014 showing an increase of nearly 48.89 percent.
He said incorporation of new companies, which was recorded at 3953 during 2012-13 has increased to 4587 during 2013-14 showing an increase of 16.03 percent.
He said apart from the above indicators, a number of achievements including raising of $2 billion through Euro Bond, resumption of program lending by World Bank and ADB after 5 years and successful revival and resumption of the privatization program of the government have gone to break the barriers that had emerged in attracting foreign investment in the country.
To a question about the expected "Azadi March", Dar said that there was consensus among political parties that they would not let the system, democracy, parliament and constitution derailed.
If anybody has problem or complaints, that should be addressed by adopting legal and constitutional ways.
He said the government has already constituted Electoral Reforms Committee, having 33 members from all political parties to ensure transparency, adding the elections of 2013 were termed transparent by all media organizations as well as by international institutions.
Copyright APP (Associated Press of Pakistan), 2014
Economy performs better than expected, political stability is must to sustain progress: Dar
