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ISLAMABAD – Federal Minister for Finance and Economic Affairs Senator Ishaq Dar on Monday expressed the hope that Pakistan would achieve its Gross Domestic Product (GDP) growth target of 5.1 per cent for the year 2014-15 as all the major economic indicators were on positive trajectory.
Addressing a press conference here, the minister said that the due to prudent policies of the government; all targets would be achieved with margin. Giving details about the performance of last six months for major economic indicators, the minister said by December 31, 2014, the Pakistan’s forex reserves were over $15 billion including $6.9 billion with commercial banks whereas $10.3 billion with the State Bank of Pakistan (SBP) and with this Pakistan has now regained its status of member country for International Bank for Reconstruction and Development (IBRD).
He said that the revenue collection during first six months of current year were remained at Rs 1162.4 billion as compared to Rs 1031.4 billion collected during same period of last year which was higher by 13 per cent despite reduction of oil prices. He said that due to massive decrease in petroleum prices the government has passed the benefit to the people by reducing the price of about Rs 26 to Rs 35 per liter during last 4 months.
“Due to the reduction of oil prices the revenue collection has decreased marginally and the government would have to bear loss of about Rs 68 billion in this regard,” the minister said adding the government has increased sales tax on petroleum products by 5 per cent to recover the losses and it is expected that by June 30 this year Rs 17.5 billion would be generated.
Regarding budget deficit, the he added that budget deficit for first six months of current financial year had been recorded at 2.4 per cent against the overall target of 4.9 per cent for the year 2014-15.He, however said that due to some challenges like settlement of the displaced persons, flood affected people and anti terrorism move, the government would have to face more expenses and the budget deficit may increase during next six months. The finance minister said that home remittances during first six months against same period of last year were increased by 15.25 from $7.79 billion to $8.987 billion.
Similarly, he said the exports from the Pakistan for the period July-December 2014-15 decreased by 4.3 per cent from $12.073 billion to $12.017 billion whereas the imports into the Pakistan increased by 11.68 per cent from $21.671 billion to $24.203 billion. Foreign Direct Investment, he said that increased by 19.29 per cent during the period July-November 2014-15 as the investment increased from $354.8 million during July-November 2013-14 to $422.8 million this year.
He said that the inflation in the Pakistan has now come down to just over 6 per cent while last year it was 8.9 per cent. On the performance of Large Scale Manufacturing (LSM) growth, the minister expressed his dissatisfaction as it remained only 2 per cent during the period July-October 2014-15 while it was 6.2 per cent during same period of last year. Dar said that he had already directed the secretary ministry of industries to take steps for the improvement of the growth.
He attributed the low growth of LSM to low production of Pakistan Steels Mills and delay in sugar crushing. Agriculture credit, he said increased from Rs 91 billion last year to Rs 128 billion this year thus showing increase of 40 per cent. He said that Karachi Stock Exchange index also witnessed an increase of 12 per cent from June 30, 2014 to January 9, 2015 as it went up from 29600 points to over 33000 points.
He said that the government's borrowing from the SBP also decreased by Rs 405 billion. To a question the minister also informed that the sixth review of International Monetary Fund (IMF) was going to be held in last week of current month probably in Dubai where the IMF would review the government's performance in major economic areas for release of next tranche. To another question, the minister said that Pakistan was fighting against terrorism with full commitment and it would not step back until the elimination of all terrorists from the Pakistan.
Pakistan to achieve GDP growth target of 5.1% this year: Dar
Addressing a press conference here, the minister said that the due to prudent policies of the government; all targets would be achieved with margin. Giving details about the performance of last six months for major economic indicators, the minister said by December 31, 2014, the Pakistan’s forex reserves were over $15 billion including $6.9 billion with commercial banks whereas $10.3 billion with the State Bank of Pakistan (SBP) and with this Pakistan has now regained its status of member country for International Bank for Reconstruction and Development (IBRD).
He said that the revenue collection during first six months of current year were remained at Rs 1162.4 billion as compared to Rs 1031.4 billion collected during same period of last year which was higher by 13 per cent despite reduction of oil prices. He said that due to massive decrease in petroleum prices the government has passed the benefit to the people by reducing the price of about Rs 26 to Rs 35 per liter during last 4 months.
“Due to the reduction of oil prices the revenue collection has decreased marginally and the government would have to bear loss of about Rs 68 billion in this regard,” the minister said adding the government has increased sales tax on petroleum products by 5 per cent to recover the losses and it is expected that by June 30 this year Rs 17.5 billion would be generated.
Regarding budget deficit, the he added that budget deficit for first six months of current financial year had been recorded at 2.4 per cent against the overall target of 4.9 per cent for the year 2014-15.He, however said that due to some challenges like settlement of the displaced persons, flood affected people and anti terrorism move, the government would have to face more expenses and the budget deficit may increase during next six months. The finance minister said that home remittances during first six months against same period of last year were increased by 15.25 from $7.79 billion to $8.987 billion.
Similarly, he said the exports from the Pakistan for the period July-December 2014-15 decreased by 4.3 per cent from $12.073 billion to $12.017 billion whereas the imports into the Pakistan increased by 11.68 per cent from $21.671 billion to $24.203 billion. Foreign Direct Investment, he said that increased by 19.29 per cent during the period July-November 2014-15 as the investment increased from $354.8 million during July-November 2013-14 to $422.8 million this year.
He said that the inflation in the Pakistan has now come down to just over 6 per cent while last year it was 8.9 per cent. On the performance of Large Scale Manufacturing (LSM) growth, the minister expressed his dissatisfaction as it remained only 2 per cent during the period July-October 2014-15 while it was 6.2 per cent during same period of last year. Dar said that he had already directed the secretary ministry of industries to take steps for the improvement of the growth.
He attributed the low growth of LSM to low production of Pakistan Steels Mills and delay in sugar crushing. Agriculture credit, he said increased from Rs 91 billion last year to Rs 128 billion this year thus showing increase of 40 per cent. He said that Karachi Stock Exchange index also witnessed an increase of 12 per cent from June 30, 2014 to January 9, 2015 as it went up from 29600 points to over 33000 points.
He said that the government's borrowing from the SBP also decreased by Rs 405 billion. To a question the minister also informed that the sixth review of International Monetary Fund (IMF) was going to be held in last week of current month probably in Dubai where the IMF would review the government's performance in major economic areas for release of next tranche. To another question, the minister said that Pakistan was fighting against terrorism with full commitment and it would not step back until the elimination of all terrorists from the Pakistan.
Pakistan to achieve GDP growth target of 5.1% this year: Dar
