Real GDP has posted a positive growth of 2.38% during the outgoing fiscal year: Finance Minister Muhammad Aurangzeb
ISLAMABAD, June 11 (SABAH): Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the real GDP has posted a positive growth of 2.38 percent during the outgoing fiscal year as against the negative growth of the last year due to the prudent policy measures.
Launching Economic Survey 2023-24 in Islamabad on Tuesday, Senator Muhammad Aurangzeb said the robust growth of 6.25 percent in the agriculture sector is the highest in the last 19 years, which is a major hallmark. This growth has been mainly driven by 16.82 percent growth in important crops such as wheat, rice and cotton.
He said the industrial sector posted a positive growth of 1.21 percent. Industrial sector performance is mainly driven by the manufacturing sector and construction sector. Services sector also witnessed a moderate growth of 1.21 percent.
The Finance Minister said the inflation has come down to 11.8 percent and there has been an unprecedented increase of thirty percent in revenue collection.
Muhammad Aurangzeb said it was estimated that the Current Account Deficit will remain six billion dollars this year. However, it is expected to be two hundred million dollars. He said Current Account remained surplus for three months and the month of May is also expected to be in surplus.
The Minister said that the foreign exchange reserves have reached about nine billion dollars, which are sufficient for two months import. He said the markets are also responding positivity as a result of macroeconomic stability.
According to the Economic Survey, per capita income increased by 129 dollars to 1680 dollars as compared to 1,551 dollars of last year on the account of increase in economic activity and appreciation in the exchange rate.
Similarly, the saving to GDP ratio has been recorded at thirteen percent this fiscal year compared to 13.2% of last year.
The Mining and Quarrying sector posted growth of 4.9 percent during the current fiscal year against contraction of 3.3 percent last year.
According to the Economic Survey, the mineral sector witnessed significant growth such as Coal 37.7 percent, Chromites 36.9, Iron Ore 63.9, Soap stone 29.3, Magnetite 34.4 and Marble witnessed a increase of 23.2 percent.
Total development expenditures grew by 14.2 percent to 1,158.1 billion rupees against 1,014.0 billion rupees last year.
Remittances grew by 3.5 percent during the first ten months of current fiscal year and were recorded at 23.8 billion dollars as against twenty three billion dollars last year.
The Foreign Direct Investment inflow has been increased by 8.1 percent to 1.5 billion dollars during the first ten months of current year as compared to 1.3 billion dollars in the same period last year.
The Finance Minister expressed the commitment to block leakages in the economy. He said there are no sacred cows and everybody has to contribute to the economy. He said process has been started for digitization of the FBR.
As regards negotiations with the International Monetary Fund (IMF), Muhammad Aurangzeb said we have had constructive and positive dialogue with the international lender and these are progressing well. He recalled that Pakistan successfully concluded stand by arrangement with the IMF and the economic discipline demonstrated by the country was recognized by the lender.
Answering to a question, Muhammad Aurangzeb said repayment will not be a challenge once IMF programme is finalized as we are entering the next fiscal year with stronger note as compared to the last year.
Replying to another question, he said high impact projects are being given priority under the Public Sector Development Programme.
In his remarks, Minister of State for Finance Ali Pervaiz said the country has moved from difficult economic situation to the fiscal stability over the last one year.
Ali Pervaiz said there is confidence in currency and stock markets besides the foreign investors are coming to Pakistan for investment in different sectors.
The Minister of State expressed the commitment to protect the vulnerable segments of the society. He said the government is also committed to the documentation of economy.