Federal Minister for Finance and Revenue Miftah Ismail on Thursday formally launched the ‘Pakistan Economic Survey 2021-22’, the pre-budget document which shared key economic indicators and the performance of different economic sectors during the outgoing fiscal year.
Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir, and Minister of State for Finance and Revenue Aisha Ghaus Pasha attended the launching ceremony.
The survey highlighted the main features of policies undertaken by the government that focused on bringing the macro-economic stability and putting the economy on a growth trajectory.
Addressing the launch event, Ismail said that the government has averted an imminent default because of the difficult decisions taken by the present government. He said the country has now been put on the path of stability.
The finance minister said that the growth rate stood at 5.97 percent during the current fiscal year, but this growth created the problems of the Current Account Deficit (CAD) and Balance of Payment (BoP) crisis.
He said the imports increased by 43 percent during the current fiscal year and stood at $77 billion. He said that the exports increased by 28 percent. The trade deficit reached $45 billion, he mentioned.
The finance minister said that foreign exchange reserves reduced by $5.6 billion in the month of March and currently stand at around $9.7 billion. He, however, expressed confidence that the reserves will touch $12 billion in the next few days with the provision of $2.4 billion by China.
He said that the previous government’s deliberate decision of giving fuel subsidies created difficulties for the State and not for the incumbent government. The decisions had left Pakistan’s economy vulnerable, and the government has taken corrective measures, he added.
The minister said Foreign Direct Investment stood at $2 billion in 2017-18 and now it has come down to $1.25 billion in the first nine months of the current fiscal year.
Speaking on the occasion, Minister for Planning and Development Ahsan Iqbal said the government will make all-out efforts to increase the development budget of the country.
He said in the next fiscal year Public Sector Development Program (PSDP) will focus on protecting water resources. He said under construction dams will be completed on a fast track basis.
The minister said funds for the Higher Education Commission will be increased and the IT sector will be given special attention.
Highlighting the government’s focus on China Pakistan Economic Corridor (CPEC) projects, he said projects under CPEC will be completed speedily. He said Special Economic Zones (SEZs) will be constructed which were ignored by the previous government. He said the up-gradation of Main Line-1 (ML-1) is an important project which will also be completed.
Speaking on the occasion, Minister for Energy Engineer Khurram Dastgir said that the PML-N government set up coal power plants as coal price was less than other fuels in 2013. He announced that the government will establish future energy projects while utilizing local fuel.