ISLAMABAD: Despite several challenges, the macroeconomic stability has been achieved and now the economy is on trajectory path as suggested by many economic indicators.
According to official sources, foreign reserves is one of the main indicators and the total liquid reserves held by the country stood at US $23,163.6 million as on December 30.The foreign reserves held by the State Bank of Pakistan stood at US $ 18,268.9 million while the net foreign reserves held by commercial banks were recorded at US $ 4,894.7 million. The performance of Federal Board of Revenue (FBR) remained around 7 percent for the six month period ended in December 2016. “This reflects catching up of the shortfall experienced in the initial months, largely on account of giving relief to consumers on petroleum prices together with sales tax refunds of Rs. 45 billions,” sources added.
On the expenditure side, the performance was on track as expenditure was allowed in a prudent manner in accordance with budget, and keeping in view the revenue growth, they added. The sources said that the Gross Domestic Product (GDP) growth also appears to be on upward trajectory.
The inflation also remained in single digit. The headline inflation measured by Consumer Price Index (CPI) increased by 3.7 percent in December 2016 compared to 3.8 percent of previous month and 3.2 percent of December last year.
On average, during Jul-Dec FY 2017, it was recorded at 3.88 percent as compared to 2.08 percent in corresponding period last year.
On monthly basis the CPI and food inflation remained lowest by -0.7 percent and -1.9 percent since February 2015. The inflation recorded continuous six weekly decline which has brought food inflation to 3.0 percent in December 2016 compared to 3.3 percent of previous month while non food inflation remained at same level of previous month at 4.2 percent, whereas core inflation increased by 5.2 percent compared to 5.3 percent of previous months and Sensitive Price Indicator (SPI) and Wholesale Price Index (WPI) in December 2016 recorded at 0.5 percent and 3.1 percent respectively, compared to 0.6 percent and 2.6 percent of previous month.
The remittances during the first five months ofthe current fiscal year stood at $7874.49 million (from July 1, 2016 to the end of November 2016).
The government expects to achieve remittance target of $20 billion during the current year.
Meanwhile, there has been decline in merchandise trade as the deficit in first five months of the current fiscal year rose nearly 20 per cent year-on-year to $11.775 billion compared to the corresponding period of last year.
