Ministry of Finance responds over media reports of shrinking economy

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Ministry of Finance responds over media reports of shrinking economy

ISLAMABAD - Ministry of Finance responds over media reports of shrinking economy of Pakistan in the year 2019-20.

The Finance Division has described as “incorrect” the impression created in a section of the media that Pakistan’s economy is shrinking.

In a statement issued on Friday, the Finance Division has asserted that the macroeconomic adjustment policies introduced by the government to support the balance of payment and strengthen the market confidence will also ensure higher and inclusive growth.

“The contention of a section of the media talking about ‘shrinking economy’ seems incorrect as the early signs of recovery of economic activities in the fiscal year 2020 are very much encouraging,” it maintained.

On the agriculture front, the federal government is implementing a “National Agriculture Emergency Programme” and has approved eight mega projects at the cost of Rs235 billion. This will encourage economic activities in rural areas and create employment opportunities in the country.

Credit to the agriculture sector has increased by 20.7pc; the sowing of cotton crop has also increased by 14.4pc as compared to last year. The import of agriculture machinery recorded a growth of 8.7pc during FY19 which is a good indicator. The base effect will also support growth in agriculture.