Finance Minister launches Pakistan Economic Survey, 2016-17

Finance Minister, Ishaq Dar while addressing a press conference on the launch of Pakistan Economy Survey 2016-17 has told the members that “Pakistan’s economy crosses 300 billion for first time, GDP growth had crossed the 5% benchmark by achieving 5.3% growth during the outgoing year” while missing the stated target of 5.7%

Commenting on Pakistan’s economic performance during the last three year, Mr. Dar said that Pakistan is becoming a lucrative country for investors around the world. He also said that there are many companies and foreign nations who are lining up to carry out investments in Pakistan. Growth achieved during the outgoing year has been acknowledged positively by the world. He further stated that Pakistan is poised to become one of the members of G20 by 2050, surpassing the economies of Italy, South Korea and Canada. Highlighting the state of economy, he said that the Foreign Direct Investment increased by 12.4% in the outgoing year.

Salient features from Pakistan Economic Survey for FY16-17;

• GDP target set at 6% for the incumbent year
• Per capita income for the last year stood at $1629
• Pakistan’s economy crossed 300 billion mark
• Exchange rate is stable without any mediation from Government
• Pakistan expects an FDI of $2.85 billion against previous year’s $1.88 billion
• Fiscal Deficit projected at 4.2%
• Pakistan’s public debt by the end of March stood at 59%
• War on terror has cost Pakistan about $123 billion
• Imports estimated at $45.5 billion in comparison to exports of $21.8 billion in FY17
• Unemployment reached 5.9%
• Poverty level stood at 29% down from 29.5% in the previous year
• Fiscal deficit stood at 8.2%
• GDP grew by 5.3%; Agriculture by 3.46%, services by 5.98% and industry by 5.02%

He also announced a relief package worth $100 billion for the internally displaced persons and reconstruction of infrastructure in the northern areas.

Further he said that the Pakistan’s economy has been underestated according to national and international estimates.  

Commenting on the Current Account Deficit woes, he said that “We are aiming at increasing the exports volume to 10% of the total GDP which would ensure that the CAD is balanced out and decreased substantially; we are taking steps necessary to increase exports”.

“This year’s growth rate has been highest in 10 years,” the finance minister added. “A 3.4% increase has been recorded in electricity, gas supply in the existing fiscal year.”

Concluding the press conference, Ishaq Dar said the current government is not looking at short term-ism; the next budget has been made keeping in view the long term benefits for Pakistan and its people. He further mentioned that the foreign investment has not been received at a cost of giving undue benefits to the investors as seen during previous governments but as a result of Pakistan's macroeconomic stability and performance over the last few years. He also said that Pakistan regional commitments have helped Pakistan achieve a stable outlook in the region.