The Economic Survey of Pakistan for the year 2010-11 was launched here on Thursday.
Federal Minister for Finance Dr.Abdul Hafeez Shaikh launched the pre-budget document, highlighting the over all performance of economy during the out-going fiscal year, providing a realistic feedback and basis for planning.
The survey covers the development of all the important sectors of economy, including growth and investment, agriculture, manufacturing, mining, fiscal development, money and credit, capital markets and inflation and debt and liabilities.
The survey also highlights the performance of education, health and nutrition, besides showing the overall population, labour force and employment, poverty, transport and communication.
It also assesses the issues of environment, contingent liabilities, tax expenditure as well as economic and social indicators.
The government has approved Rs.730 billion Public Sector Development Programme (PSDP) for the year 2011-12. The federal component of the PSDP is Rs.300 billion, while the component of provinces is Rs.420 billion.
Rs.10 billion have been approved for the Earthquake Reconstruction and Rehabilitation Authority (ERRA).
According to the survey, the GDP for year 2010-11 was fixed to grow at 4.5 percent, however due several challenges including the devastating floods that hit the economy badly; the growth rate reduced to 2.4 percent.
Federal Minister for Finance, Dr. Abdul Hafeez Shaikh Thursday said the devastating floods, international oil prices and security situation were the three main factors that hit the country’s economy and subsequently resulted in slowdown in growth rate during the fiscal year 2010-11.
Addressing a press conference at the launching ceremony of Economic Survey, he said despite these challenges, the growth rate stayed positive.
The Finance Minister was flanked by Secretary Finance, Dr. Waqar Masood, Chairman Federal Board of Revenue, Salman Siddique, Deputy Chairman Planning Commission of Pakistan, Dr. Nadeem-ul-Haq and other officials of the ministry.
The GDP for year 2010-11 was fixed to grow at 4.5, however due to the devastating floods that hit the economy badly; the growth rate reduced to 2.4 percent.
“We face challenges but this is the time when all political parties and civil society are determined to lead the country out of these crises,” he said adding that “with joint efforts we would lead the country out of these crises”.
Despite all these challenges, the Minister said the several sectors of economy including exports and remittances have shown considerable growth during the outgoing fiscal year.
Federal Minister for Finance, Dr. Abdul Hafeez Shaikh while addressing a press conference at the launching ceremony of Economic Survey said that the overall agriculture sector registered growth of 1.2 percent.
However, he added that due to devastating floods the growth in major corps, witnessed negative growth of 4 percent. The manufacturing sector also grew by 3 percent despite increase in oil and energy prices while the services sector witnessed positive growth of 4.1 percent. He said that the investment to GDP ratio was recorded at 13.4 percent during the year against 15.4 percent last year adding that security and high input rates were the main hurdles in investments.
He said that the Federal Board of Revenue has set the revenue collection target of Rs. 1588 billion during the current year, out which the Board has already collected Rs. 1316 billion. He said that the Board was confident that it would be able to collect the remaining Rs. 272 billion by June end.
During May 2011, the Board collected Rs. 160 billion against Rs.110 billion collected during the same month of last year, showing an increase of Rs. 50 billion.
Hafiz Shaikh said that the exports have witnessed historic growth of 28 percent by increasing from $18.8 billion last year to 20.2 billion during July-April (2010-11).
He said that the export figures are expected to cross the $24 billion figure this year. The remittances also witnessed a considerable growth during July-April (2010-11) by growing from $7.3 billion during the same period of last year to $9.1 billion.
He said that government’s bank barrowings have declined by Rs. 16 billion during the current year as compared to last year.
Dr. Abdul Hafeez Shaikh Thursday said that the Federal Board of Revenue was confident to meet the revenue collection target of Rs. 1588 billion by June end.
Minister said that the FBR has collected Rs. 1316 billion so far and the board was confident that it would collect the remaining Rs. 272 billion by the end of this month.
He said that collection of Rs. 1588 billion would send a positive signal outside and help build country’s image.
The federal minister said that the board has collected Rs. 160 billion during May 2010 against Rs. 110 billion collected during the same month of last year, showing an increase of Rs.50 billion. Minister for Finance, Dr. Abdul Hafeez Shaikh said that the overall economy was in very bad condition when the current government took the power in 2008.
However, tough decision and the prudent policies helped in putting the economy on the path of stability.
Several measures were taken by the government including cutting down its own expenditures, enhancing revenues and reducing the fiscal deficit to maintain economic stability, he added.
He said a major setback to economy was done by the floods of 2010 that affected about 1.6 million families having 20 million members besides causing damages to infrastructure, agriculture and other properties worth $10 billion.
He said security situation was also taking toll on economy as business activities in some areas have curtailed while the name of the country is also being defamed abroad that causes decline in investments.
He said that the third major challenges that the economy faced during the outgoing fiscal year was the increase in international oil prices which have also affected the performance of the industrial and manufacturing sector.
The Finance Minister said the government has taken several measures to make the situation better and highlighted the importance of becoming self-sufficient.
He said that for becoming self-sufficient, the government has taken certain sterps to broaden the tax base and bring into the tax net those who are not paying taxes.
Besides, several sectors including fertilizer, tractors, textile, carpet, leather and sports would be taxed to broaden the tax net, he added.
He said that the fiscal deficit for the year 2010-11 was expected to remain 4 percent of GDP, however, due to unfavorable circumstance, it grew to 5.1 percent.
Besides, the Finance Minister said that government has taken initiatives to involve private sector more in the business as doing business was not the job of the government adding that it was also making efforts to get access for the Pakistani products in the international market, particularly in the European Union.