Govt prom­ises Pro-busi­ness bud­get and poli­cies

Pakistan Observer - - ECONOMY WATCH -

Cur­rency Sell­ing Buy­ing IS­LAM­ABAD—Ris­ing re­mit­tances and pri­vate in­vest­ments has been sup­port­ing coun­try’s eco­nomic growth, as fed­eral govern­ment has promised to un­veil a more pro-busi­ness bud­get for fy-2017. While the cur­rent fi­nan­cial year 2016 moves to­wards its close on June 30, in­ter­na­tional an­a­lysts and mul­ti­lat­eral in­sti­tu­tions are prais­ing Sharif’s govern­ment and fore­cast­ing “re­newed and con­tin­u­ing eco­nomic, busi­ness and fi­nan­cial growth” com­pared to last govern­ment’s five-year rule which ended in May 2013, re­ported Khaleej Times. Re­port quot­ing the World Bank’s lat­est coun­try re­port said: “Fast- grow­ing home re­mit­tances and ris­ing in­vest­ments un­der the China Pak­istan Eco­nomic Cor­ri­dor (CPEC) have sup­ported the coun­try’s eco­nomic growth. Pak­istan’s mod­est eco­nomic growth will con­tinue.”

The World Bank added how­ever, growth re­mains be­low the 5.5 per cent tar­get en­vis­aged in Pak­istan’s an­nual plan and the South Asia av­er­age of 7.5 per cent. Pak­istan’s growth is ex­pected to pick up to 4.5 per cent from 4.2 per cent. The re­port fur­ther added that like the rest of the re­gion, Pak­istan is ben­e­fit­ing from high re­mit­tances, CPEC in­vest­ments and from low prices of im­ported oil, which have re­duced the trade deficit de­spite a no­table de­cline in ex­ports and in­creased con­sump­tion. Ac­cord­ing to the re­port, the bud­get for fy-17 will en­cour­age peo­ple to in­vest in var­i­ous in­dus­tries and with that they will be in­vest­ing in the peo­ple of Pak­istan.

The gross do­mes­tic prod­uct (GDP) is up at five per cent, leav­ing its former range of two to three per cent. The econ­omy, par­tic­u­larly in­dus­trial out­put, will rise fur­ther as the govern­ment is mov­ing fast to add 10,000 megawatts of power to end en­ergy short­ages. It will add another 15,00mg by 2025. The in­vest­ment-to-GDP ra­tio will be raised fur­ther to 21.1 per cent in fy-18. The size of the econ­omy or GDP will be raised from the cur­rent Rs30.672 tril­lion to Rs34.801 by fy-17 and to Rs40 tril­lion by fy-18.

New in­vest­ment in the public sec­tor will be Rs210 bil­lion in en­ergy, Rs470 bil­lion on in­fra­struc­ture de­vel­op­ment and the so­cial sec­tor will get Rs545 bil­lion. The over­all public and pri­vate sec­tor in­vest­ment will be $3 bil­lion in projects such as gas in fy-17, com­pared to the cur­rent $880 mil­lion in fy-16,re­port added.—APP

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