Islamabad (May 22, 2017): Finance Minister Ishaq Dar while announcing economic survey said that Pakistan’s Gross Domestic Product (GDP) had grown by 5.28 percent in fiscal year 2016-17 (FY17), against the target of 5.7 pc, pointing that in 2013 the growth rate was just 3 percent.
At press conference to announce economic survey of Pakistan, the minister said that the GDP growth was recognized at international level.
Economy Size:
He added that during the outgoing fiscal year, direct foreign investment in the country grew by over 12 percent, adding that the size of Pakistan economy grew over to 300 billion dollars.
The minister said that industrial sector posted 5 percent growth, adding that first time during the last 10 years Pakistan posted over 5 percent GDP growth.
Dar said that the agriculture sector posted 3.46b percent growth. He added that all sectors of the economy posted positive growth.
Agriculture:
Turning to the agriculture sector, the Finance Minister reminded that its growth remained 0.27 percent last year. Kissan package worth 341 billion rupees has paid the dividends to raise its growth to 3.46 percent this year. Under the Kissan package, he said the agriculture inputs including fertilizers were subsidized.
He said the production of different major crops also witnessed an increase during the period. Wheat crop production remained 25.75 million tonnes this year as compared to 25.63 million tonnes last year. Cotton production remained 10.6 million bales this year as compared to 9.92 million bales last year. He said efforts are being made to further improve cotton production in order to domestically meet the demand of textile industry.
Click Play Button to Watch This Video
During the year in question, Pakistan Stock Market remained the best performing market of Asia, he added. He added that the foreign exchanges are at $16.15 billions. Dar said that the poverty remained at 29 percent.
Inflation:
Ishaq Dar said inflation according to Consumer Price Index was 8.69 percent in 2013-14 and it is is expected to close at 4.09 percent at the end of the current financial year as a result of measures taken by the Government.
He added that energy production increased as compared to previous year.
Budget Deficit:
The government also met its budget deficit target of 3.8pc, with the deficit registering at 3.7pc, he said adding that the government missed its trade deficit target of Rs20.4bn, with the deficit widening to Rs24bn in the period reviewed.
The current account deficit expanded to $7.25bn for the year, and is expected to reach 2.7pc of GDP by the end of this year. The minister said that remittances were expected to reach $19.5bn for the year, adding that foreign investment is expected to reach $2.58bn in FY17.
Exports:
He said exports is the area of concern and the Government is focusing on it. He said exports are 17.91 billion dollars in the first ten months of the current fiscal year. He said the exports are likely to close at 21.76 billion dollars. He said package given to exports has been enforced and this will continue during the next financial year. He pointed out that imports of the country have increased to 37.40 billion dollars during the first ten months of current fiscal year as compared to 33.44 billion dollars during the same period last year. These are expected to close at 45.48 billion dollars at the end of the year. He said import of plants and machinery have been increased by forty percent which good for the growing economy.
Foreign Reserves and Remittances:
He said remittances are expected to close at 19.5 percent this year showing a decline of 2.6 percent. He said Foreign Direct Investment has increased to 1.73 billion dollars during the first ten months of this year as compared to 807 million dollars during this period last year. He said it is expected to reach 2.58 billion dollars. He said at present foreign exchange reserves stand at just under twenty billion dollars. He said exchange rate as of 22nd of this month was 104.87 which is satisfactory.
Stock Market:
Upbeat about the performance of stocks, the Finance Minister said the market capitalization has doubled over the last four years. He said the decision of merging different stocks into Pakistan Stock Market helped earn the status of best performing market in Asia and the fifth largest in the world.
cost of War on Terror:
About the war on terror, the Finance Minister said that it has cost the country 123.13 billion dollars. He said the country is annually spending ninety to one hundred billion rupees in the war on terror. He said that one hundred billion rupees will be set aside for the next fiscal year for the rehabilitation and reconstruction of tribal areas. The amount will also be used for raising new wings of civil armed forces.
Ishaq Dar said per capita income was 1333 dollars in 2013 which has increased to 1629 dollars.
Related News:-
Govt’s Pro-growth Policies led to Higher Economic Growth: PM
