Islamabad (Web Desk/Agencies): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb presented Pakistan’s economic survey for the fiscal year 2024 at a press conference in Islamabad on Tuesday.
He said that real Gross Domestic Product (GDP) has posted a positive growth of 2.38% during the outgoing fiscal year as against the negative growth of the last year due to the prudent policy measures.
The finance minister told the journalists that the robust growth of 6.25% 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% growth in important crops such as wheat, rice and cotton,” he said.
Aurangzeb said that the industrial sector posted a positive growth of 1.21%.
“Industrial sector performance is mainly driven by the manufacturing sector and construction sector,” he said, adding that the services sector also witnessed a moderate growth of 1.21%.
The finance minister said that the inflation has come down to 11.8% and there has been an unprecedented increase of 30% in revenue collection.
Muhammad Aurangzeb said it was estimated that the current account deficit will remain $6 billion this year. However, it is expected to be $200 million.
He said that the current account remained surplus for three months and the month of May is also expected to be in surplus.
The finance minister said that the foreign exchange reserves have reached about $9 billion, 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 to $1,680 as compared to $1,551 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 13% this fiscal year compared to 13.2% of last year.
The mining and quarrying sector posted growth of 4.9% during the current fiscal year against contraction of 3.3% last year.
As per 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 an increase of 23.2%.
Total development expenditures grew by 14.2% to Rs1,158.1 billion against Rs1,014.0 billion last year.
Remittances grew by 3.5% during the first 10 months of current fiscal year and were recorded at $23.8 billion as against $23 billion last year.
The Foreign Direct Investment (FDI) inflow has been increased by 8.1% to $1.5 billion during the first 10 months of current year as compared to $1.3 billion 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.
The minister said that process has been started for digitization of the Federal Board of Revenue (FBR).
Regarding negotiations with the International Monetary Fund (IMF), the finance minister said that Pakistan had constructive and positive dialogue with the international lender and these are progressing well.
Muhammad Aurangzeb recalled that the Pakistan successfully concluded stand by arrangement with the IMF and the economic discipline demonstrated by the country was recognized by the lender.
Replying to a question, Muhammad Aurangzeb said that repayment will not be a challenge once IMF programme is finalised as we are entering the next fiscal year with stronger note as compared to the last year.
Responding to another question, the minister said that high impact projects are being given priority under the Public Sector Development Programme (PSDP).
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.
“There is confidence in currency and stock markets besides the foreign investors are coming to Pakistan for investment in different sectors,” he said.
Malik expressed government’s commitment to protect the vulnerable segments of the society.
“The government is also committed to the documentation of economy,” the state minister said.