Despite challenges ailing economy stabilized

Despite challenges ailing economy stabilized

ISLAMABAD: Difficult economic decisions and reforms undertaken by the present PPP led government and despite challenges during past four and half years had produced positive results and ailing economy in the country had been stabilized and put on the path of economic resilience and growth.

Highlighting the major achievements of the government, a senior official of the Ministry of Finance told APP that the budget deficit had been brought down from 7.6 % of GDP in 2007-08 to 6.6% of GDP during 2011-12, while it has been estimated at 4.7% of GDP in FY 2012-13.Advisor to Finance Ministry Rana Asad Amin said that due to tight monetary policy regime, inflation had been brought down from 25% in 2008 to 11% in FY 2011-12 and estimated at 9.5% during FY 2012-13.

He added that subsidies have been reduced from 3.5% of GDP in 2007-08 to around 1% of GDP in the budget 2012-13.He further said that due to stringent austerity measures adopted by the present government the expenditure on civil government has been reduced from 1.3% of GDP to 0.9 % of GDP.Rana Asad Amin said that FBR collections increased from around Rs. 1157 billion in FY 2008-09 to Rs. 1908 billion in FY 2011-12 and estimated at Rs. 2381 billion in FY 2012-13.

He informed that workers’ remittances grew from US$ 7.8 billion in FY 2008-09 to US $ 13.2 billion in FY 2011-12.”Exports increased from US $ 19.1 billion in FY 2008-09 to US $ 25.3 billion in FY 2010-11, stabilizing at US $ 24.6 billion FY 2011-12″, he remarked.He said that the current account deficit of $13,874 million in 2008 was turned around into to a surplus of $423 million in Sept 2012.

Foreign exchange reserves, he said rose from a low of $ 7.5 billion in September 2008 to $18.2 billion in June 2011; currently they stand at around $14.4 billion.He added that debt to GDP ratio has been kept within the statutory limit (Fiscal Responsibility and Debt Limitation Act, 2005).The Advisor Finance Ministry said that Economic growth of 3.7% was achieved during FY 2011-12 and estimated at 4% during FY 2012- 13.

Regarding the Development spendings, he said that the Public Sector Development Programme (PSDP) over a period of 5 years was Rs. 3 trillion.”Current financial year’s PSDP outlay is Rs.873 billion as compared to Rs668 billion last year”, he remarked.He said that Rs 153 billion were earmarked under People’s Works Programme (Rs.118 billion under PWP-II and Rs.25 billion under PWP-I) in 5 years for implementation of hundreds of schemes for electrification, gas supply, road, water supply and sanitation. – Brecorder