ISLAMABAD: Federal Minister for Finance Mohammad Ishaq Dar that due to prudent economic policies of the government the country ‘s economy was on the path of stabilization adding that foreign exchange reserves would be enhanced to US $ 19 billion by the end of this calendar year. He stated this while addressing the post budget 2015-16 conference of Institute of Cost and Management Accounts of Pakistan (ICMA) here at a local hotel. Economic experts, chartered accountants and leaders of the business community also attended the conference. Former Finance Minister Dr.Hafeez A Pasha and President ICMA Kashif Mateen Ansari also spoke on the occasion.
Finance Minister Ishaq Dar further said that reserved of US $ 19 billion would be the highest ever reserves in the history of the country. He added that international credit rating agencies were improving the ratings of the country adding said that international rating agency Moody’s has upgraded Pakistan to B-3 category due to economic growth and stability in the country.
The minister said that the Moody’s had upgraded Pakistan to B-3 from CAA-1 due to economic stability in the country.
He said that in 2012, the Moody’s lowered Pakistan’s crediting to negative due to deteriorating economic conditions and poor economic indicators. Dar said that the present government came into power in 2013, the country’s economy was in shamble and at the verge of financial default. He added that before coming into power the PML-N planned a road-map aiming at to revamp national economy and bringing economic stablisation through austerity measures.
Dar said in June 2013 the government had a clear road-map of three objectives. These were to prevent Pakistan from default in 2014, achieving macroeconomic stability by June 2015 and promoting an inclusive economic growth for creation of job opportunities and providing resources to alleviate poverty from third year onward.
“We formulated policies and programmes to achieve these objectives and never hesitated in taking difficult decisions, no matter how unpopular but were critical for the economic revival. The economy has now stabilized and is poised to grow at an accelerating rate.”, he remarked.
The minister said the economic growth during the outgoing year was provisionally recorded at 4.24% compared to the revised estimate of 4.03% last year.
He said Per Capita Income, which stood at $1384 last year, had increased to $1512, showing growth of 9.3% while inflation was recorded at 4.6% for July-May 2014-15, the lowest in 11 years.
“FBR revenues were up by 16.4% during 2013-14 and have risen by nearly 13% in the first 11 months of 2014-15 and are expected to close at 15% by the year end.”
He said the government was going to achieve the 5% per cent target of fiscal deficit in the current year.
Elaborating the budget strategy for next fiscal year, Ishaq Dar said reduction of fiscal deficit would continue to consolidate the gains with the target set at 4.3% against 5% in 2014-15.
He said energy generation was one of the government’s key priorities as it planned to add 7000 MW to the system, besides setting up 3600 MW LNG-based projects.
“By December 2017, we will bring 10600 MW in the system. Beyond December 2017, other projects such as Dasu, Diamer-Bhasha, Karachi Civil Nuclear Energy and many other projects will also be completed”, he added.
He said the government had proposed additional measures to boost exports and to ease the cost of doing business, besides improving an overall regulatory regime to facilitate exporters.
He said that government has presented a pro-poor, pro-growth budget in 2015- 16 and taxes have been imposed on the affluent people.
He added that government has taken care of the poorest of the poor and those who are living below the poverty line. “We have increased allocations from Benazir Income Support Programme (BISP) in the budget 2015-16 from Rs.35 billion to Rs.102 billion in just two years”, he remarked.
He further said that the allocations for Baitul Maal has also increased in gudget 2015-16 from Rs.2 billion to Rs.4 billion. Dar said that government was focusing on the development projects and development budget has also been increased from Rs.525 billion to Rs.700 billion in budget 2015-16.
“The development budget in 2008-09 was only Rs.300 billion”, he added. The Minister stressed the need for adopting a charter of economy by all the political forces and separation of politics from economy for the prosperity of the country. He added that government has brought the discretionary funds to zero in the budget. He added that secret funds of the thirty four organizations have also been done away with except the funds of two security agencies. He also highlighted the steps taken by the government for the elimination of SRO culture saving billion s of Rupees for the country. He highlighted the relief given to government employees in the budget.
