Things are stable now, it’s time to grow!

After successfully moving Pakistan’s economy in right direction, Prime Minister Muhammad Nawaz Sharif’s government was now planning to accelerate growth, reported a foreign news outfit.

“This is the message one comes across after analyzing the economic, business and financial targets set by Prime Minister Nawaz Sarif, his Finance Minister Ishaq Dar and Planning Minister Ahsan Iqbal, for FY-2016, which starts on July 1 – almost right in the middle of the holy month of Ramzan,” Khaleej Times reported.

GROWTH UP:

According to the newspaper, the GDP growth target was raised just a bit to 5.5 per cent from 4.24 per cent for FY-16. “It includes contributions like 3.9 per cent from agriculture, 6.4 per cent from industry and 5.7 per cent from services,” the paper said.

The Khaleej Times further said that the overall federal revenue receipts would go up to Rs 5.8 trillion from Rs 5.3 trillion in FY-15. The tax revenue will rise to Rs 3.1 trillion from Rs 2.7 trillion. Defence spending will rise to Rs 781 billion from Rs 720 billion as the military is fighting against the terrorists. Estimated external resources will rise to Rs 751 billion up from Rs 670 billion, the paper said.

According to the newspaper, the total foreign aid will go up to Rs 896 billion from Rs 810 billion and the Investment will grow 17.7 per cent over and above FY-15. Savings are expected to rise 16.8 per cent as compared to FY-15, the paper said.

Khaleej Times further said that a low inflationary environment is likely to persist. It is projected at around six per cent in FY-16, somewhat higher than FY- 15, but rising. The current general unemployment rate of 6.2 per cent, and that of youth at 10.5 per cent, will be brought down through new job creation and loan financing for self-employment, the paper quoting Planning Minister Ahsan Iqbal said.

STOCKS UP:

Pakistan’s stock market has performed very well in FY-15 and is projected to continue to rise in FY-16.

The Karachi Stock Exchange KSE-100 index touched its highest level of 34,826 points on February 3, 2015 and recorded 5.8 per cent month-on-months growth, the paper said.

“The capital market is envisaged to remain vibrant over 2015-16 with introduction of key structural and regulatory reforms, development of new products and measures for risk management, transparency and investor protection,” the paper quoting Finance Minister Ishaq Dar said.

“The outlook for foreign trade and balance of payments, home remittances from overseas Pakistanis, FDI, bilateral and multi-lateral aid inflows, was officially described as “optimistic” for FY-16 “due to the upcoming developments in the energy sector as well as trade partnership with regional countries,” quoting Commerce Minister Khurrum Dastgir the paper said.

EXPORTS UP:

Khaleej Times further said that Prime Minister Nawaz Sharif himself is taking an upbeat view of a growth in industrial production and foreign trade on the back of the projected larger electricity supplies and reduction in power outages

Dastgir projected exports to grow by 5.5 per cent to total $25.5 billion.

The imports are expected to increase six per cent to $43.3 billion. The trade account is projected to reach $17.4 billion and the current account deficit at $2.9 billion for FY-16, the paper observed.

Home remittances sent by overseas Pakistanis from the UAE, Saudi Arabia, other GCC countries, US and UK can go on rising in the range of $18 to 19 billion or more.

However, State Bank of Pakistan (SBP), the central bank, has yet to announce the actual receipt of home remittances during the full year FY-15 that ends on June 30. The official amount of remittances was $15 billion in July-April period of FY-15, the paper said.

“The bulk of the increases in workers’ remittances came from the UAE during July-April 2015, with a rise of 34.1 per cent when compared with the same period last year. Likewise, all the major countries from which remittances are being received, showed a positive trend except the EU, which showed a decline of 15.9 per cent,” the paper said.

The paper further said that in view of this, at the start of FY-16 the picture of the Pakistani economy is positive. Low international oil, food and commodity prices in the medium run, and generation and supply of more electricity to industry and businesses, hold the key to a faster growth. It provides a good indicator to foreign exporters to Pakistan and foreign investors, the Khaleej Time said.