ISLAMABAD – Adviser on Finance Abdul Hafeez Sheikh has said the difficultdecisions taken by the government have started bearing positive results onthe economic front.
Addressing a news conference along with FBR Chairman Shabbar Zaidi inIslamabad today (Saturday) about the economic situation of the country, hesaid the government has overcome the fiscal and trade deficits. He saidthe trade deficit witnessed a decrease of thirty five percent and fiscaldeficit thirty six percent during the first quarter of current fiscal year.
Hafeez Sheikh said the current account deficit has been reduced to therecord level. For this, we struck agreements with the friendly countries aswell as IMF, the World Bank and the Asian Development Bank.
He said our exchange rate and foreign reserves are standing at stronglevels with sixteen percent surge has been made in revenues. He said eighthundred thousand additional people have come to the taxnet.
The Adviser said the government has not made any borrowing from the StateBank of Pakistan over the last three months with the aim to control theinflation. He said we have also not taken supplementary grants as there ischeck on the expenditures.
Hafeez Sheikh said the non-tax revenue has contributed four hundred and sixbillion rupees in the first quarter of current fiscal year. He said this is140 percent more than the last corresponding period. He said this is a bigachievement. He expressed the confidence that the government will be ableto raise 1600 billion rupees through non tax revenue this fiscal year.
Hafeez Sheikh said the confidence of foreign investors is also increasingon Pakistan. He said there has been an additional 340 million dollars netportfolio investment.
The Adviser pointed out that the exports remained stagnant over the lastfive years. However, the exports are now increasing as a result of supportgiven to the industries in the form of subsidy on gas, electricity andloans.
The Adviser on Finance said that the government has also focused onoverseas employment of Pakistanis to increase remittances. He said twohundred and twenty four thousand people went abroad last year foremployment whilst this year this number has surged to three hundred andseventy three thousand.
The Adviser said that international financial institutions including theIMF and the World Bank are also giving positive statements about Pakistan’seconomy.
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Hafeez Sheikh said the present government has significantly cut itsexpenditures.
Answering a question, the Advisor said the government will unveil acomprehensive policy regarding Small and Medium Enterprises within twoweeks. He said the policy will contain proposals of financing SMEs,incentives, ease of doing business and speedy approvals.
Responding to a question, the Advisor said the government agencies areworking in union to ensure that Pakistan comes out of FATF grey list at theearliest.
He said it is in Pakistan’s own interest to check money-laundering. He saidsteps are being taken in various directions for the purpose, and so farover 20 of the total 27 points have been implemented.
Hafeez Sheikh said public welfare is the cornerstone of every economicpolicy of the PTI government. He said the government has not increasedpetroleum products for three months as the rupee has stabilized.
Responding to a question, FBR Chairman Shabbar Zaidi said dialogue withtrader community is progressing positively and there is no deadlock in it.
To another question, the FBR Chairman said that Pakistan has discussed withUAE authorities abuse of use of Iqama by Pakistanis. He said the UAEgovernment has agreed to provide details of Pakistanis’ properties there.
