Pakistan records 5% growth in GDP, 17% in revenue, says Dar

[Tameem]

• Finance minister says fiscal deficit reduced by 2.2 per cent
• Govt sees $20b reserves in next three years

The financially beleaguered Pakistan Muslim League-Nawaz (PML-N) has claimed that the country has recorded at least five per cent growth in Gross Domestic Product (GDP) during the first quarter of this financial year and 17 per cent jump in revenue collection during July to November showing the “positive outcomes of the economic policies of the government”.

During a press conference on Wednesday, Finance Minister Ishaq Dar said that the present government had successfully made a revenue collection of Rs 792 billion during the past five months against Rs 679 billion recorded in the same period last year – an increase of at least 17 percent. Besides, the fiscal deficit, which was recorded at Rs 690 billion during the period under the previous government, has been reduced to Rs 570 billion with the reduction of 2.2 percent. Remittances have also shown a growth of 7 percent during past five months making the figure to $6.4 billion against previously recorded $ 5.9 billion during the same period.

Talking about foreign reserves which have depleted to over $3 billion, enough for only one month’s imports, the minister said that it was not a cause of concern for the government as it was expecting it. “The government has already stepped up efforts to jack up the reserves position to a reasonable level. We have policies and roadmap to bring the foreign exchange reserves to at least $20 billion in the next three years,” he said.

Explaining how the depleted reserves figure would be pushed to the claimed level, Dar said that his government will receive $800 million from Etisalat by the end of the current month, with another $790 million from the Coalition Support Fund from US by January 15, 2014. Besides, at least $1.5 to 2 billion would be received against the auction of spectrum licence which is expected to be held in February 2014. Further, the government has received $137 million from the Islamic Development Bank.

He said that inflation in the country was mainly because of the few bold steps taken by this government to resolve longstanding issues like circular debt. Through this move the government has saved at least Rs 70 billion in terms of interest. He criticised the caretaker government that despite changes made in 18th amendment of constitution, it had not cleared the accounts for the new government.

Dar said that the devaluation of rupee was mainly because of speculation and government has taken steps to discourage speculators which was evident from the fact that the inter-bank rate on Wednesday was closed at Rs107 to a dollar. He hoped that the figure would further come down.

According to him, the situation of inflows will further improve and those who speculate on Pakistani currency would end up as losers. The government, encouraged by positive outlook projected by “Standard and Poor” ‘Moodys’, planned to float a global rupee bond with the assistance of IFC who are also interested in floating of sovereign bonds of Pakistan which has received a very positive response from the market.

He rejected reports that the government has borrowed enough money from central bank to clear dues, saying except the already mentioned Rs 59 billion, no additional borrowing was made.

- See more at: Country records 5% growth in GDP, 17% in revenue, says Dar | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[Bilal.]

Hopefully we'll achieve annual growth rate of 5% too!

 

[Echo_419]

• Finance minister says fiscal deficit reduced by 2.2 per cent
• Govt sees $20b reserves in next three years

The financially beleaguered Pakistan Muslim League-Nawaz (PML-N) has claimed that the country has recorded at least five per cent growth in Gross Domestic Product (GDP) during the first quarter of this financial year and 17 per cent jump in revenue collection during July to November showing the “positive outcomes of the economic policies of the government”.

During a press conference on Wednesday, Finance Minister Ishaq Dar said that the present government had successfully made a revenue collection of Rs 792 billion during the past five months against Rs 679 billion recorded in the same period last year – an increase of at least 17 percent. Besides, the fiscal deficit, which was recorded at Rs 690 billion during the period under the previous government, has been reduced to Rs 570 billion with the reduction of 2.2 percent. Remittances have also shown a growth of 7 percent during past five months making the figure to $6.4 billion against previously recorded $ 5.9 billion during the same period.

Talking about foreign reserves which have depleted to over $3 billion, enough for only one month’s imports, the minister said that it was not a cause of concern for the government as it was expecting it. “The government has already stepped up efforts to jack up the reserves position to a reasonable level. We have policies and roadmap to bring the foreign exchange reserves to at least $20 billion in the next three years,” he said.

Explaining how the depleted reserves figure would be pushed to the claimed level, Dar said that his government will receive $800 million from Etisalat by the end of the current month, with another $790 million from the Coalition Support Fund from US by January 15, 2014. Besides, at least $1.5 to 2 billion would be received against the auction of spectrum licence which is expected to be held in February 2014. Further, the government has received $137 million from the Islamic Development Bank.

He said that inflation in the country was mainly because of the few bold steps taken by this government to resolve longstanding issues like circular debt. Through this move the government has saved at least Rs 70 billion in terms of interest. He criticised the caretaker government that despite changes made in 18th amendment of constitution, it had not cleared the accounts for the new government.

Dar said that the devaluation of rupee was mainly because of speculation and government has taken steps to discourage speculators which was evident from the fact that the inter-bank rate on Wednesday was closed at Rs107 to a dollar. He hoped that the figure would further come down.

According to him, the situation of inflows will further improve and those who speculate on Pakistani currency would end up as losers. The government, encouraged by positive outlook projected by “Standard and Poor” ‘Moodys’, planned to float a global rupee bond with the assistance of IFC who are also interested in floating of sovereign bonds of Pakistan which has received a very positive response from the market.

He rejected reports that the government has borrowed enough money from central bank to clear dues, saying except the already mentioned Rs 59 billion, no additional borrowing was made.

- See more at: Country records 5% growth in GDP, 17% in revenue, says Dar | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

Good news for Pakistan
A the best for future

Many PTIwalas here were just being to negative

 

[Kompromat]

Isn't this the same guy who said that Pakistan was going to become the 11th largest economy 'soon' ?

He's a flat face liar, whom i wouldn't believe until i see World Bank or IMF figures.

 

[Bilal.]

Additionally, I believe Exports might reach 28 billion and remittances another 16 billion.

 

[Kompromat]

@Tameem

BEHAVE yourself, reply arguments with arguments. If you cant, just keep it 'sealed'.

 

[RAMPAGE]

Isn't this the same guy who said that Pakistan was going to become the 11th largest economy 'soon' ?

He's a flat face liar, whom i wouldn't believe until i see World Bank or IMF figures.

Don't worry mate, Insha-Allah we'll see 5% GDP growth at the end of this fiscal year

 

[Armstrong]

I want an Independent Source cross-verifying this claim !

 

[Kompromat]

@RAMPAGE

While its good to be optimistic we also need to keep a watchful eye on the details and potential disinformation.

Previous Nawaz govt too was good at saying things that didn't exist until they ran us into imminent bankruptcy.

Just think, that these are 'official figures' , they need to be reported EXACTLY as recorded. Is it just a coincidence that BOTH figures 5% and 17% are 'round figures'?

Why is it not lets say 5.12%, and 17.25% etc?

It has to be a mathmatical miracle to be round figures.....or he's just playing with our brains.

 

[farhan_9909]

I was looking for this news from the past many months

This is the first time in the history Pakistan is releasing the Per quarter growth rates that too under the condition of IMF i read few months before

I posted a news where Dar said we will release the First quarter growth rates either in late nov or in dec

This mean we can achieve above 5% this year.

A different source,2hours old

Dawn,ET,Brecorder usually update the business category after 12pm

ISLAMABAD, Dec 11 (NNI): Finance Minister Ishaq Dar has said the economy is moving on the right track with 5% GDP growth rate for the first quarter of the current financial year as against 2.9% last year

Ishaq Dar expresses satisfaction over economy’s progress | eNews by ePakistan.com

 

[RAMPAGE]

@RAMPAGE

While its good to be optimistic we also need to keep a watchful eye on the details and potential disinformation.

Previous Nawaz govt too was good at saying things that didn't exist until they ran us into imminent bankruptcy.

Just think, that these are 'official figures' , they need to be reported EXACTLY as recorded. Is it just a coincidence that BOTH figures 5% and 17% are 'round figures'?

Why is it not lets say 5.12%, and 17.25% etc?

It has to be a mathmatical miracle to be round figures.....or he's just playing with our brains.

I agree with you. Indeed the minister is not telling the whole truth BUT ....

The Elections taught one lesson to to the politicians, especially to the previous government that if the government won't deliver positives results then the public will reject them in the next elections.

 

[AUz]

Isn't this the same guy who said that Pakistan was going to become the 11th largest economy 'soon' ?

He's a flat face liar, whom i wouldn't believe until i see World Bank or IMF figures.

But World bank, IMF doesn't calculate independent figures or survey Pakistani economic growth, do they?

Don't they rely on government figures?

Additionally, I believe Exports might reach 28 billion and remittances another 16 billion.

lol, jtni currency de-value hui hai..us se to exports 50 billion hni chahiye thi

Anyways, I wish best of luck...

Say whatever, The United States of America is undisputed mega giant of economy. There is soooooooooo much detail, independent organizations recording even minute details of economic activity, cross-checking, and what not...very transparent system..

Pakistan doesn't even have 'actual' data of economic parameters. ALOT of our growth just go unreported..which doesn't give any revenue to economy and we miss out on billions upon billions every year.

Hope our system becomes more credible and independent...
.

 

[Leader]

he claimed inflation to be approx 7.5 , while its 10.5

he did give wrong statistics to IMF back in 90s and still did a fraud in recent statistics, for which we received a penalty too from IMF.

typical chor accountant wali harkateen, zero professionalism, claiming reserves to cross 20 billion US dollar in 3 years, while we are sitting on 3.3 all time low reserves right now.

Its just thanks to overseas Pakistanis for their remittances that we are surviving...

so I highly doubt if he is quoting right stats, I hope it to be true though.

 

[AUz]

he claimed inflation to be approx 7.5 , while its 10.5

he did give wrong statistics to IMF back in 90s and still did a fraud in recent statistics, for which we received a penalty too from IMF.

typical chor accountant wali harkateen, zero professionalism, claiming reserves to cross 20 billion US dollar in 3 years, while we are sitting on 3.3 all time low reserves right now.

Its just thanks to overseas Pakistanis for their remittances that we are surviving...

so I highly doubt if he is quoting right stats, I hope it to be true though.

Source?

 

[Donatello]

A 5% growth is easily achievable by reducing the bureaucratic red tape. Also, the energy crisis seems to be improving with more power plants coming online.