Prime Minister Yousaf Raza Gilani on Thursday said a number of economic targets had been met during the first six months of the current fiscal year due to the prudent policies of the incumbent government.
Giving a policy statement in the National Assembly on the economic situation of country in the first six months of the current fiscal year, Gilani said despite facing challenges of floods, rains, deteriorating law and order and global recession, the economic indicators of Pakistan improved during the said period and inflation had been reduced to a single digit.
Gilani said political stability was a must to ensure economic stability and urged the media to play its role in this regard.
The prime minister said although the government had inherited economy from the previous government in a poor state, economic reforms introduced by the new government had started showing results.
He said the government controlled borrowing during the first six months that helped reduce the inflation to a single digit (9.7%) for first time in the country’s history.
He said the expenditure was under control with only 45 percent utilisation of the government’s budget during the first six months.
The prime minister added that fiscal deficit, which was 9.4 percent, had been reduced to 7.6 percent and the inflation had been brought down to 9.7 percent from 25 percent.
Gilani said the government provided a number of incentives to farmers that improved the food supply situation in the country.
“It was made possible with the help of lower budget deficit and reducing borrowing from the State Bank of Pakistan,” he said. Gilani added that prices of essential items were brought down in the open market, and food inflation, which was 20 percent last year, remained in a single digit figure during the first six months of the current fiscal year.
The prime minister said the deterioration in the industrial sector had stopped and the industry was making progress. He said the GDP growth rate would be four percent due to enhanced agricultural production.