Achhe din has come to…Pakistan

The economy is steadily improving, almost reaching the high points under Musharraf. The projected growth rates of 7% in 2017 may be a bit too ambitious, unless there is an economic breakthrough with India. Also promised are 900,000 jobs in next four years, which will again require economic co-operation with India.

In turn India will also significantly benefit from economic ties with Pakistan.

It all points to a fast time-table for resolution of the Kashmir problem. While all other interests will have a look in, the efforts can only succeed if common Kashmiris agree to a final settlement. The politicians have always claimed that they were very close to a solution before Kargil created a brake or Mumbai put a stop to talks. Such events may happen in the future as well and it will be always best to remain prepared.
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Launching the survey at a press conference, he said this is less than
the targeted 4.14 per cent but it is for the first time in six years
that the country has entered the territory of four per cent growth this
year.


And, the GDP growth rate would be increased one per cent
each during the next three years taking it to 7 per cent in 2017.
Similarly, the industrial growth has been recorded at 5.84 per cent as
against 1.37 per cent last year.

The minister also said that the
large-scale manufacturing recorded growth of 5.135 per cent as against
4.08 per cent last year. He said electricity generation and gas
distribution growth last year was minus 16.33 per cent and this year it
has grown by 3.72 per cent.

Construction recorded growth of 11.31
per cent this year as against minus 1.685 per cent last year while
wholesale and retail trade increased by 5.181 per cent as against 3.38
per cent last year, he said.

Ishaq Dar said that transport and
communication recorded growth of 2.89 per cent as against 2.88 per cent
last year while agriculture sector showed growth of 2.12pc against
2.88pc last year.

Major crops showed growth of 3.74 per cent as
compared to 1.19pc last year. Wheat production this year is 25.29
million tonnes as compared 24.21 million tonnes last year, he said.

Rice
production this year stood at 6.8 million tonnes as against 5.54
million tonnes; sugarcane 66.47 million tonnes as compared to 63.75
million tonnes last year and maize production this year is 4.531 million
ronnes as against 4.22 million tonnes last year.

Provisional
estimates of cotton production this year are 12.77 million bales as
against 13.03 million bales last year. Similarly, grams and oil seeds
recorded growth of minus 3.52 per cent.

The minister said
inflation in the first eleven months of the current financial year was
8.6 per cent as against 7.5pc last year.

Exports in ten months of
the outgoing financial year stood at $21 billion as against $20.1
billion last year, showing an increase of 900 million dollars.

Ishaq
Dar said the grant of GSP Plus concession by the European Union has
started impacting our textile sector positively as it grew by 7 per cent
in value terms.

According to the survey, imports in ten months of
the outgoing financial year stood at $37.1 billion as against $36.7
billion last year, indicating 1.2 per cent increase. The minister said
there was a significant increase in import of plant and machinery which
was a positive indication.

Workers’ remittances in ten months of
current financial year reached $12.9 billion as against $11.6 billion
last year, showing a growth of 11.5pc. Foreign investment this year
stood at $2.979 billion against $1.277 billion last year.

Foreign exchange reserves presently stood at $13.63 billion against $11.4 billion dollar last year, said the minister.

The
survey further unveiled that per capita income this year has increased
to $1,386 from $1,339 last year. Stock market crossed 29,700 points and
its capitalisation increased by about 38 per cent. Tax revenue as
percentage of GDP this year is 7pc as against 6.8pc last year.

Non-tax
revenue as percentage of GDP remains at 2.7pc while total expenditure
as percentage of GDP reduced to 12.9pc from 14.8pc last year.

Development
expenditure this year as percentage of GDP was 2.2 per cent as against
2pc last year. Fiscal deficit in first ten months was 3.2 per cent as
compared to 4.7pc last year.

The finance minister further said that FBR tax collections in 11 months have grown by 16.4 per cent. Ishaq
Dar said the State Bank of Pakistan’s borrowing last year was Rs 416.8
billion, but this year the government paid back Rs 10.5 billion to the
bank.

Hinting an increase in the defence budget, he said the PML-N government has made the defence of the country invincible.

To a question, he said major incentives will be given to the private sector to restore the confidence of the investors.

It is estimated that
around 900,000 jobs will be created in the next four years after the
introduction of G-3 and G-4 spectrum, said the finance minister.

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Link: http://www.dawn.com/news/1110122/414pc-gdp-growth-recorded-highest-since-2008-09/
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