ISLAMABAD: Federal Finance Minister Muhammad Ishaq Dar has claimed to clear circular debt by July this year.
Addressing a pre-budget conference here, Dar also said that the government was determined to achieve 7 percent gross domestic product (GDP) growth rate by 2018.
He said the government had achieved macro-economic stability which was recognized by 22 reputed international organizations, adding that it was because of this stability that China gave Pakistan the package of $46 billion.
The minister further said that many countries, including Italy, Qatar and Saudi Arabia, were looking to invest in Pakistan. “Now government was focusing on upward growth trajectory and jobs creation in order to cater for the growing workforce of the country,” he added.
Highlighting the government’s achievements, he said in 2013, when the PML-N came into power, the people were facing over 20 hours power loadshedding everyday.
“Due to increasing budget deficit, decreasing revenue collection and depleting foreign exchange reserves, the country was on the verge of bankruptcy,” he added.
However, he said, the economy had turned around within three years due to prudent policies and the steps taken by the government. Now, he added, all economic indicators were showing resilience also.
Dar said in order to bring fiscal discipline, all discretionary funds of the ministries and departments, including those of the Prime Minister, had been abolished.
The government, he said, had also decided to withdraw tax exceptions of Rs 300 billion. Tax exceptions for Rs 120 billion had been phased out in the first financial year while some were removed during the current year and the rest in next financial year.
He said the consolidated efforts had started bearing results as revenue collection witnessed 56 per cent increase during the last three years.
“Now the GDP was growing at 4.5 per cent and budget deficit had reduced to 4.5 per cent from 7 per cent of last financial year while remittances and foreign exchange reserves were also showing significant increase,” he said.
The minister said the PML-N government was working on four Es of economy, energy, education and extremism, which was the part of its election manifesto.
He said the macroeconomic stability had been achieved while a comprehensive plan was devised to add about 10,000 MW more electricity (to the national grid) by 2018.
Speaking on the occasion, Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan said the FBR had completed consultation with 26 representative organizations and their suggestions and proposals would be accommodated in the budget.
