Country is safe on economic front: Dr Sheikh

President Asif Ali Zardari has been ensured by finance minister Dr Abdul Hafeez Sheikh that the country is safe on the economic front. He was briefed about the overall economic situation of the country along with various aspects of the economy and economic performance during the first five months of the current fiscal year. Dr Hafeez also focused on critical indicators like broadening tax base, fiscal austerity, exports, remittances, imports and inflation. He informed as a result of difficult economic decisions taken by the present government, economy was stable and various indicators were showing encouraging signs.
He said efforts to broaden the tax base have registered a significant success. Up till 16th of December, Rs712 billion tax had been collected as against Rs555 billion collection during the corresponding period, last year. It amounted to an increase of 28 per cent over the corresponding period and exceeded the target of 25 per cent. On austerity measures, finance minister informed that the various measures adopted by the government have also yielded positive results. He said the budgetary expenditure during first five months of the year, which was envisaged to be 42 per cent, was brought down to 38 per cent, indicating that the budgetary control measures were successful. Despite worldwide slump in demand, Pakistani exports during first five months of the current fiscal year have registered an increase of 12 per cent over that of the corresponding period last year. On remittance side, an increase of 18 per cent was witnessed with $5.2 billion remittances for the first five months of the current year, said Sheikh. Finance minister also informed that by the end of December, the government would have provided a total of Rs100 billion for developmental projects. This amount, he said, would be spent on mega projects in energy, communications and water sector thereby, creating jobs and building infrastructure. The energy projects included Bhasha Dam and Chashma Power Projects, he informed the President. The President was also informed that the imports during the first five months of the current fiscal year have registered an increase of 20 per cent over the corresponding period of last year indicating that the economic activity was gradually picking up and was on steady course.
Mr Zardari was briefed that inflation has also come down during the first five months of the current fiscal year. Consumer Price Index (CPI), which was 14 per cent in November, last year was 10.2 per cent in November, this year. Similarly, Sensitive Price Index (SPI) was also witnessing continuously downward trend during past five weeks.
The President inquired about the steps taken for extending social safety net to the poorest of the poor. It was informed that Rs20 billion would be provided for BISP by the end of December which would benefit tens of thousands of poor families living below poverty line. He remarked the improvements in economic indicators were encouraging however, efforts should continue to keep up the pace and momentums of economic turn around. He also said gas and power shortages continue to haunt people and we need to step up our efforts to meet these challenges. ‘The prevailing international economic situation is not very healthy and efforts must continue to further stabilise the economy and to fight economic challenges facing the country,’ he added.