ISLAMABAD: Despite challenges, Pakistan’s economy continued to pick up in the first nine months of current fiscal year (July-March), as reform and stabilisation measures resulted in higher foreign exchange reserves, low inflation, low fiscal deficit as compared to same period of last fiscal year.
“The majority of economic indicators are positive and are showing marked improvement during the first nine months of current financial year,” Ministry of Finance sources told APP.
Giving details about various performing indicators, the sources said that Federal Board of Revenue (FBR) during July-March 2015-16 had collected a provisional revenue of Rs 2,103 billion as compared to Rs 1,753 billion realised during the same period of last fiscal year, showing a growth of around 20 per cent.
Similarly, they said that remittances sent by overseas Pakistanis during July-March of current financial year were $14.158 billion as compared to $13.595 billion remitted in the same period of last fiscal year, showing a growth of 4.14 percent.
The fiscal deficit has come down to 3.2 percent during July-February 2015-16 compared to the fiscal deficit of 3.3 percent of same period of last fiscal. As many as 4,355 companies were incorporated during July-March during current year compared to the incorporation of 3,591 companies, a growth of 21.28 percent.
Another important indictor, the Large Scale Manufacturing also grew by 4.12 percent from July-January (2015-16) compared to growth of 2.51 percent during the same period of last year.
The credit to private sector (flows) expanded by 107.73 percent and reached to Rs.370.8 billion from July 1 to April 1 (2016) compared to flow of Rs.178.5 billion during last year. The Agriculture credit disbursements also increased by 15.25 percent by growing from Rs 288.74 billion in July-February (2014-15) to Rs 332.78 billion in July-February (2015-16).
The spending on development has been recorded at Rs 353.28 billion from July 1 to March 18, 2016, compared to spending of Rs 249.98 billion in July 1 to March 20 of same period of last fiscal. The Foreign Direct Investment into the country witnessed by 4.8 percent by growing from $716.2 million during July-February (2014-15) to $750.9 million during the current year.
However, the imports into the country during July-March were recorded at $32.515 billion compared to $33.948 last year, showing negative growth of 4.22 percent. On the other hand, the exports from the country also declined by 12.92 percent by falling from $17.921 billion last year to $15.606 during the ongoing fiscal year.
Based on the figures, the trade deficit witnessed positive growth of 5.5 percent by going up from the deficit of $16.027 billion last year to $16.909 this year. During the first three quarters of the current year, the inflation was recorded at 2.64 percent compared to 5.12 percent in same period of last year, the sources added. The monetary assets were recorded at Rs 654.8 billion from July, 1 to April, 1 (2015-16), compared to assets of Rs 521.7 billion during last year.
The government borrowed as many as Rs 507.3 billion from July 1 to April 1, (2015-16 as against the borrowing of Rs.702.2 billion from July 1 to April 3, (2014-15). The foreign exchange reserves increased from $18.695 billion on June 30, 2015 to $21.237 on April 13, 2016, the sources added.
