Pakistan´s government revenue collection inched up 10.4 percent to in the fiscal year. Finance Minister Ishaq

By: Asghar Ali Mubarak

 ISLAMABAD:  Finance Minister Ishaq Dar said that the government had completed its three fiscal years as economic development had reached to 4.7pc.The Pakistan´s government revenue collection inched up 10.4 percent to in the first nine months of the fiscal year ending June 30, the finance ministry said on Thursday.

Exports through April slowed by 9 percent year-on-year to $18.8 billion, weighed down by crop failures production of main export cotton, Finance Minister Ishaq Dar briefed media. The current account deficit through March eased a bit to $1.6 billion, or 0.6 percent of GDP, according to ministry figures. In a press conference ahead of the report´s release, Finance Minister Ishaq Dar said the current account deficit number was $1.52 billion.Foreign direct investment through April was $1.03 billion, compared with $907 million the same period of the last fiscal year. Federal Minister for Finance Ishaq while launching the Economic Survey, a day before presenting annual budget for 2016-17, shed light on macroeconomic performance achieved by the country in outgoing financial year. The government, however, missed GDP target largely due to poor performance in agriculture sector.  The agriculture sector witnessed decreased by 0.19 pc, missing the growth target, which was set at 3.9 pc.The country, he said missed target in the agriculture sector due to 28 percent decline in cotton crop , adding that the government announced Rs600 billion Kissan package during the current fiscal year. Finance Minister Ishaq Dar the government would announce package for growth in agriculture sector in the next fiscal years. Finance Minister Ishaq Dar said the budget deficit for the current year remained 1.52 billion dollars. The country, however, seemed to have made significant achievement in industrial sector where growth rate was recorded at 6.8 pc against the target of 6.4 pc. Services sector, the minister told media, also grew in outgoing fiscal year. Finance Minister Ishaq Dar said Foreign Direct Investment increased by 5.4pc and most of it took place in oil and gas sector. “Exports in last 10 months stood at USD18.18 billion,” he said, adding that 10-month import bill stands at USD32.75 billion while foreign remittances stood at USD16.03 billion in 10 months. The survey also revealed that economic targets could have been achieved if cotton production could be increased while lack of production lead to GDP decline by 0.5pc.

Dar also said that agriculture sector had been affected in the wake of reduction of cotton price in the international market. Dar promised to announce bigger package for the betterment of agricultural sector in the coming budget. Rs 600 billion had been allotted for farmer’s package in the current fiscal year.

According to the survey report, industrial development growth reached to 6.1% while 6.8pc of development had been reported with respect to mining. 4.0pc had been noted in transport and communication sector. Dar said that 4.57pc increase had been recorded in wholesale sector which was dropped to 2.63pc last year. 5.7 pc growth had been recorded in the services sector.

The government had also been working to improve energy sector as electricity and gas supply had constantly been improved while 12.18pc of increase in production had been recorded in energy sector this year. Pakistan International Airlines (PIA) and railway performance also progressed towards betterment. Within 9 months, a 13.87pc increase in railway growth had been recorded.

Pulses and fruit production targets could not be achieved in the present fiscal year. At the end of this very year, the inflation rate would be less than 3pc while imports growth worth $32 billion and 700 million had been reported in 10 months.

Dar further stated that foreign exchange reserves had exceeded to $ 21 billion, the highest level recorded in national history while remittances had increased from $16 billion with a growth rate of 5.25pc.

Earlier, foreign exchange reserves were reported worth $3.21 billion, which were now at the highest recorded point making it to $21.6 billion. This year s budget deficit in terms of GDP reached to $1 billion and 520 million while poverty rate reduced to 29.5pc from 64.2pc recorded in 2001.

Direct foreign investment growth reached to 5.4pc and revenue tax rate had increased to 4pc in terms of GDP. Previously, tax revenue rate had reached to 7.5pc.

Fiscal deficit decreased to 3.4pc from 3.8pc in a time period of 9 months. Coming fiscal budget 2016-17 would be presented on Friday 3rd June 2016.