–Hafeez Sheikh claims 35pc decrease in trade deficit, 36 per cent in fiscal deficit during first quarter of fiscal year
–Says govt taking all measures to ensure Pakistan comes out of FATF grey list
ISLAMABAD: Adviser on Finance Abdul Hafeez Sheikh on Saturday said the difficult decisions taken by the government have started bearing positive results on the economic front.
Addressing a news conference along with Federal Board of Revenue (FBR) Chairman Shabbar Zaidi here about the economic situation of the country, he said the government has overcome the fiscal and trade deficits.
He said the trade deficit witnessed a decrease of 35 per cent and fiscal deficit 36 per cent during the first quarter of the current fiscal year.
Hafeez Sheikh said the current account deficit has been reduced to the record level. “For this, we struck agreements with the friendly countries as well as the International Monetary Fund (IMF), the World Bank and the Asian Development Bank.”
He said Pakistan’s exchange rate and foreign reserves were standing at strong levels with sixteen per cent surge in revenues. He said that “0.8million additional people have come to the tax net”.
The adviser said the government has not made any borrowing from the State Bank of Pakistan over the last three months with the aim to control the inflation. He said the government didn’t take supplementary grants as there was a check on the expenditures.
Sheikh said the non-tax revenue contributed Rs406bn in the first quarter of the current fiscal year. He said this was 140 per cent more than the last corresponding period, adding this was a big achievement.
He expressed the confidence that the government would be able to raise Rs1600bn through non-tax revenue this fiscal year. Sheikh said the confidence of foreign investors was also increasing in Pakistan.
He said there had been an additional 340m net portfolio investment.
The adviser pointed out that the exports remained stagnant over the last five years. However, the exports were now increasing as a result of the support given to the industries in the form of subsidy on gas, electricity, and loans.
The adviser said that the government also focused on overseas employment of Pakistanis to increase remittances. He said over 0.2m went abroad last year for employment while the number surged to over Rs0.3m this year.
The adviser said that international financial institutions, including the IMF and the World Bank, were giving positive statements about Pakistan’s economy. Sheikh said the present government significantly cut its expenditures.
Answering a question, the adviser said the government would unveil a comprehensive policy regarding Small and Medium Enterprises within two weeks. He said the policy will contain proposals of financing SMEs, incentives, ease of doing business and speedy approvals.
Responding to a question, the adviser said the government agencies were working in the union to ensure that Pakistan comes out of the Financial Action Task Force (FATF) grey list at the earliest. He said it was in Pakistan’s own interest to check money laundering.
He said steps were being taken in various directions for the purpose, and so far over 20 of the total 27 points have been implemented.
Sheikh said public welfare was the cornerstone of every economic policy of the Pakistan Tehreek-e-Insaf (PTI) government. He said the government did not increase petroleum products for three months as the rupee was stabilised.
Responding to a question, FBR Chairman Shabbar Zaidi said dialogue with the trader community was progressing positively and there was no deadlock.
To another question, the FBR chairman said that Pakistan also discussed with UAE authorities abuse of the use of Iqama by Pakistanis.
He said the UAE government has agreed to provide details of Pakistanis’ properties there.