ISLAMABAD, Pakistan: The Federal Finance Minister Ishaq Dar unveiled the Economic Survey for 2016-17 in Islamabad on Thursday according to which, Country’s Gross Domestic Product (GDP) remained 5.28 percent in the outgoing fiscal year, the highest in last 10 years.
While launching the Economic Survey for fiscal year 2016-17, Ishaq Dar said that 6 percent growth target has been set for the next financial year.
The finance minister said that the volume of Pakistani economy crossed the threshold of $300 billion during the outgoing financial year.
Ishaq Dar said that industrial sector contributed 21 percent, agriculture 20 percent and services 60 percent to the GDP. He said that agriculture growth remained 3.46 percent, services 5.98 and industries 5.02 percent.
The minister said that the large scale manufacturing sector is on a positive trajectory while the construction industries witnessed a growth of 9.05 percent during the outgoing fiscal year.
Ishaq Dar reminded that the growth of agriculture sector remained 0.27 percent last year.
The minister said that Kissan package worth Rs341 billion has paid the dividends to raise its growth to 3.46 percent this year. He said that under the Kissan package, the agriculture inputs including fertilizers were subsidized.
The finance minister said that the production of different major crops also witnessed an increase during the period. He said that wheat crop production remained 25.75 million tonnes this year as compared to 25.63 million tonnes last year. Likewise, he said that cotton production remained 10.6 million bales this year as compared to 9.92 million bales last year.
Ishaq Dar said that efforts are being made to further improve cotton production in order to domestically meet the demand of textile industry. He also expressed confidence about the agriculture credit, saying that it will achieve the target of $700 billion this year.
Furthermore, Ishaq Dar said that inflation according to Consumer Price Index was 8.69 percent in 2013-14 and it 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.
The finance minister said that exports are $17.91 billion in the first 10 months of the current fiscal year, adding that these are likely to close at $21.76 billion. He said that package given to exports has been enforced and this will continue during the next financial year.
Ishaq Dar pointed out that Country’s imports have increased to $37.40 billion during the first 10 months of current fiscal year as compared to $33.44 billion during the same period last year. He said that exports are expected to close at $45.48 billion at the end of the year.
Dar said that import of plants and machinery have been increased by 40 percent which good for the growing economy.
The finance minister said that current accounts deficit is expected to close at 8.3 percent this financial year.
Likewise, he said that remittances are expected to close at 19.5 percent this year showing a decline of 2.6 percent.
The minister said that Foreign Direct Investment (FDI) has increased to $1.73 billion during the first 10 months of this year as compared to $807 million during this period last year. He said that FDI is expected to reach $2.58 billion.
Ishaq Dar said that at present foreign exchange reserves stand at just under $20 billion. He said that exchange rate as of May 22 was 104.87 which is satisfactory. He said that per capita income was $1,333 in 2013 which has increased to $1,629.
Upbeat about the performance of stocks, the minister said that the market capitalization has doubled over the last four years. He said the decision of merging different stocks into Pakistan Stock Market (PSX) helped earn the status of best performing market in Asia and the 5th largest in the world.
The minister was confident to close the financial year at the fiscal deficit of 4.2 percent which was 8.8 percent when the present government assumed power. he said that net public debt stands at Rs18,892 billion which is 59.3 percent of the GDP.
In addition, Ishaq Dar said that Federal Board of Revenue (FBR) is expected to achieve the revised collection target of Rs3,521 billion.
Talking about the war on terror, the finance minister said that it has cost the Country $123.13 billion. He said that the Country is annually spending Rs90 billion to Rs100 billion in the war on terror.
Ishaq Dar said that Rs100 billion will be set aside for the next fiscal year for the rehabilitation and reconstruction of tribal areas. He said that the amount will also be used for raising new wings of civil armed forces.
