ISLAMABAD, Pakistan: The federal finance minister Ishaq Dar said on Monday that the country’s foreign exchange reserves have crossed over $15 billion as a result of prudent policies of the government.
In his address at a news conference in Islamabad on Monday, he said that the government is committed to achieve all the economic targets.
The minister said that the International Monetary Fund (IMF) has completed five reviews on Pakistan’s economy and we are ready for the sixth review expected to be held in the last week of this month.
Ishaq Dar said that the IMF has projected 4.3 percent gross domestic product (GDP) growth for the country but it is our utmost effort to achieve the target of 5.1 despite the setbacks caused by flash floods and expenditures on the war on terrorism.
The finance minister said that the General Sales Tax (GST) on oil products has been increased from 17 percent to 22 percent to achieve revenue shortfall because of reduction in oil prices in global market.
The minister said that there is a revenue loss of $68 billion and the government will recover seventeen and a half billion rupees till June 30 due to increase in GST on petroleum products.
Dar said that in the first six months of current financial year, the Federal Bureau of Revenue (FBR) has collected revenue of Rs1162.4 billion as against Rs1031.4 billion during the same period last year showing increase of 13 percent.
The finance minister said that the budget deficit remained 2.4 percent in the first six months of current fiscal year against the target of 4.9 percent.
However, he said, that the government will have to face extra ordinary expenditures due to the implementation of national action plan on terrorism as well as the rehabilitation of temporary displaced persons. He assured all possible resources will be provided for the honourable return of the displaced families to their homes.
The federal minister for finance said that home remittances have increased by 15.25 percent while exports stand at Rs12.07 billion. He said that imports of the country have increased from $21.671 to $24.203 billion in the first six months of the current financial year. These showed an increase of 11.68 percent.
Ishaq Dar said that last year inflation was 8.9 percent in July-December period last year which is decreased to 6.1 percent in the same period this year.
The minister that 1,723 new companies have been registered during the initial five months of this financial year whereas 1,534 companies were registered during the same period last year, showing an increase of 12.3 percent.
