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Country Would Undergo A Period Of Stabilization For Around Six To 12 Months And After That The Government Would Focus On Recovery And High Growth: Advisor To Prime Minister On Finance, Dr. Abdul Hafeez Shaikh
Muhammad Irfan Published May 25, 2019 | 10:59 PM
Advisor to Prime Minister on Finance, Dr. Abdul Hafeez Shaikh said that the country would undergo a period of stabilization for around six to 12 months and after that the government would focus on recovery and high growth
He said besides fiscal consolidation and revenue mobilizations, the government would focus on inflation to mitigate its impact on vulnerable segments of society.
He said that exchange rate and increase in oil prices at international market were the two main reasons of triggering inflation, adding that it was not in government's hand to check international oil prices.
However, he assured that the government was planning to provide subsidy to protect low income people.
He said that the government would devise strategies to ensure welfare of common people and help lessen their problems.
He said that the hike in electricity price would not affect 75 percent consumer who utilize less than 300 units as the government would provide subsidy of Rs 216 for this purpose.
Similarly increase in gas prices would not affect 40% low end consumers.
He said that the government had launched Ehsas programme and doubled the cash transfers to the poor to protect them.
Another feature of the economic roadmap he said would be the development of backward areas as the government would initiate Rs50 billion projects in these part of the country.
He said Rs6 billion have been provided as Ramzan Relief Package and another Rs30 billion subsidy would be provided on food items in next budget.
He said that job creation was one of the priorities of the government, adding that the government's programme of building 5 million houses would create jobs in 18 sectors of economy. He said that land has already been acquired in different cities and this programme would be operationalized soon.
He said that the government had also launched Kamyab Jawan programme under which Rs100 billion have been earmarked to provide loans to youth to start their own businesses.
Similarly, he said that agriculture sector would be uplifted to help create jobs. He said that Rs250 would be spent on 18 agricultural projects in coordination with the provinces.
The advisor said that the Public Sector Development Porgramme (PSDP) funding has also been raised upto Rs925 billion to complete all big projects including dams and roads.
The government was also focusing on enhancing exports and had already made arrangements with China and Turkey to access these markets.
The advisor said that the incumbent government had inherited economy in weak condition as the public debt was around Rs31,000 while foreign loans stood at $100 billion. Similarly, the reserves had gone down from $18 billion to below $10 billion and export growth remained stagnant for five years with trade deficit soaring to $30 billion and fiscal deficit hovering around Rs2.3 trillion and circular debt Rs38 billion per month.
He said that the government had taken some decisions to stabilize economy, adding that the it had signed agreement of $6 billion at the interest rate of 3.5 percent with International Monetary Fund which would help stabilize economy. The programme would also give a positive signal at international level and government would be able to get additional $2 to $3 form World Bank and Asian Development Bank.
He said in addition the government was provided $3.2 billion oil on deferred payments facility by Saudi Arabia which would be operational form July 1st.
The Advisor said it was high time that political difference are kept aside and all political parties work for the development of the country to put its economy on growth path.
Meanwhile replying to a question, Omar Ayub Khan said during the tenure of Pakistan Muslim League (N) government, the government kept no check on the power theft which resulted in rising of circular debt to over Rs450 billion.
He however vowed that the measures recently taken against the power thieves were yielding positive results and the monthly circular debt had been reduced by Rs 8 billion while it would be further reduced to only Rs 8 billion per month in June next year while in December 2020, there would be no circular debt at all.
Planning minister Khusro Bakhtyar said the government had set the growth target for next fiscal year at 4% while for the year 2020-21, the target would be at 6.5%
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