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Economy performed well in one year despite challenges: MoF

June 25, 2014



Despite challenges, the country's economy has performed well during July to May of outgoing fiscal year (2013-14) as suggested by major economic indicators including growth rate, inflation, foreign remittances, foreign exchange reserves, external trade and industrial growth, the data of the Ministry of Finance pointed out.

Data, highlighting one year economic performance of the PML-N government, revealed that in 2013, the present government inherited some major challenges particularly terrorism, lawlessness, power shortage, economic mismanagement, rampant corruption, bad image of the country, unemployment and price hike.

"The foundation of the country had been shaken due to maladministration, rampant corruption in every sphere of life and inefficiency of the last fourteen years that had brought national institutions like PIA, Pakistan Steel, Railways and WAPDA on the verge of virtual collapse", it added.

The PML-N government under the leadership of Prime Minister Muhammad Nawaz Sharif pledged to address all these national issues of utmost importance. The Finance Ministry data said that economic indicators are moving in the right direction According to data of the Finance Ministry ,the Federal Board of revenue (FBR) realized Rs1,955 billion during the outgoing financial year July-May 2013- 14 compared to Rs1,679 billion collected during same period of 2012-13, showing a growth of 16.4 percent.

Similarly, budget deficit during JulyMay 2013-14 stood at around 4.2 percent (Provisional) as compared to 6.6 percent registered during same period of 2012-13.

The Finance Ministry data further revealed that Remittances during July-May 201314 recorded at US $ 14.33 billion as compared US $ 12.75 billion remittances received during same period of July-May 2012-13 posting a growth of 12.39 percent.

The Finance Ministry data further said that in the month of May 2014 the remittance stood at US $ 1.44 billion when compared to US $ 1.18 billion in the month of May 2013 posting a growth of 21.3 percent. Similarly exports of Pakistan stood at US $ 21.0 billion during July -April 2013-14 as compared to US $ 20.1 billion during same period of 2012-13 showing a growth of 4.47 percent.

The data further revealed that imports during July-April 2013-14 stood at US $ 37.1 billion compared to US $ 36.7 billion registered during same period of 2012-13 showing an increase of 1.08 percent. Similarly, the trade deficit during July-April 2013-14 was registered at US $ 16.1 billion compared to US $ 16.6 billion in 2012-13, showing a reduction of 3.1 percent. Likewise the Forex reserves stood at US $ 13.45 billion on June 9,2014 out of which State Bank of Pakistan is holding US $ 8.61 billion while banks other than SBP are holding US $ 4.84 billion.

The data further said that Consumer Price Index (Average Inflation) during July-May 2013-14 registered 8.66 percent compared to same period of 2012-13. Similarly, incorporation of companies during July-May 201314 were registered at 4,137 as compared to 3,587 registered during the same period of 2012-13 showing a growth of 15.33 percent. Large scale manufacturing (LSM) growth during the period from July to March 2013-14 remained 4.3 percent as compared to that of 3.5 percent during same period of 2012-13.

Likewise credit to private sector during July-May (2013-14) stood at Rs328.9 billion against Rs33 billion during same period of last financial year, thus showing a surge of 796.66 percent whereas the agriculture credit also increased by 13.09 percent from Rs336 billion to Rs380 billion.


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Source: National Herald Tribune (Pakistan)


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