The Economic Survey for 2013-14 states that the country provisionally achieved 4.14 percent GDP growth rate during the outgoing financial year, missing the target of 4.4 percent.
Launching the survey, a pre-budget document, at a news conference on Monday, Finance Minister Ishaq Dar said that though the growth rate is less than the targeted 4.4 percent, the country has reached the four percent mark for the first time in six years.
He said that the GDP growth rate would be increased one percent per year during the next three years, taking it to 7 percent in 2017.
The minister said that industrial growth has been recorded at 5.84 percent as against 1.37 percent recorded in the previous year. He said that large-scale manufacturing recorded a growth of 5.135 percent against 4.08 percent in the previous year.
He said electricity generation and gas distribution growth in the previous year was minus 16.33 percent and this year it was 3.72 percent.
According to the survey, construction recorded a growth of 11.31 percent this year as against minus 1.685 percent last year. Wholesale and retail trade increased by 5.181 percent against 3.38 percent last year. Transport and communication recorded a growth of 2.89 percent as against 2.88 percent last year.
Agriculture sector showed a growth of 2.12 percent as against 2.88 percent in the previous year. Major crops showed growth of 3.74 percent as compared to 1.19 percent last year.
Wheat production this year is 25.29 million tonnes as compared to 24.21 million tonnes last year. Rice production stood at 6.8 million tonnes against last year’s 5.54 million tonnes, sugarcane 66.47 million tonnes as compared to 63.75 million tonnes last year and maize production this year is 4.531 million tonnes as against 4.22 million tonnes last year. Provisional estimates of cotton production this year are 12.77 million bales as against 13.03 million bales last year. Grams and oil seeds recorded negative growth of 3.52 percent.
Dar said inflation in the first eleven months of the current financial year was 8.6 percent as against 7.5 percent last year.
EXPORTS, IMPORTS SHOW RISE: According to the survey, exports in 10 months of the outgoing financial year stood at $21 billion as against $ 20.1 billion last month, showing an increase of $900 million.
Dar said the grant of GSP Plus concession by the European Union has started impacting our textile sector positively as it grew by 7 percent in value terms.
The survey states that imports in 10 months of this financial year stood at $37.1 billion as against $36.7 billion last year, indicating 1.2 percent increase. The minister said there was significant increase in import of plant and machinery which is a positive indication.
Workers’ remittances in 10 months of the current financial year reached $12.9 billion as against $11.6 billion last year, showing a growth of 11.5 percent.
Foreign investment this year stood at $ 2.979 billion as against $1.277 billion last year.
Foreign exchange reserves presently stood at 13.63 billion dollar as against 11.4 billion dollar last year. Per capita income this year has increased to $1,386 from $1,339 dollar last year. Stock market crossed 29,700 points and its capitalisation increased by about 38 percent.
Tax revenue as a percentage of GDP this year is 7percent as against 6.8 percent last year. Non-tax revenue as percentage of GDP remains at 2.7 percent while total expenditure as percentage of GDP reduced to 12.9 percent from 14.8 percent last year. Development expenditure this year as a percentage of GDP was 2.2 percent as against 2 percent last year.
Fiscal deficit in first ten months was 3.2percent as compared to 4.7percent last year.
The finance minister said FBR tax collections in 11 months grew by 16.4percent.
Dar said State Bank borrowing last year was Rs416.8 billion but this year the government paid back Rs10.5 billion to the bank.
Answering a question, the finance minister said the Pakistan Muslim League-Nawaz (PML-N) government has made the defence of the country invincible. He said all requirements will be fulfilled to make the country’s defence strong as was being done in the past.
To a question, he said major incentives will be given to the private sector to restore the confidence of investors.
Answering another question, Dar rejected the impression that federal developmental projects are central Punjab specific and emphasised that major development projects are being executed in all parts of the country.
He said SROs will be rolled out in the next three years. He said vulnerable group is being extended financial help under the Income Support Programme.
Dar said that Rs 75 billion were allocated for this programme during this year and increase in the allocation is expected for the next year.
He expressed the hope that 900,000 jobs will be created in the next four years after the introduction of G-3 and G-4 spectrum.
