Supplementary budget aims at boosting exports, promoting ease of doing business: Asad
ISLAMABAD: Minister for Finance Asad Umar has said that the supplementary budget to be launched by the government this month, is aimed at enhancing exports, facilitating business activities, and attracting maximum foreign direct investment in the country.
Due to remedial measures, introduced by the current government for bringing stabilization in national economy, the economic indicators had already been started showing significant resilience, he said while addressing to anchorpersons here at his office.
During the first half of current financial year, he said exports of the country have increased, imports decreased and remittances are showing the upward trend as compared to the corresponding period of last financial year.
The minister said despite the immense challenges faced by the government on economic front, it was decided to introduce some structural reforms to correct the fundamentals of national economy for bringing about long term development and stabilization.
Due to these reforms, current account deficit has also registered decreasing trend which would ultimately help reducing the pressure on foreign exchange reserves, he added.
Asad Umer said that four components including exports, imports, remittances and foreign direct investment are the determining factors of current account deficit, adding that all these indicators excluding foreign investment remained up to the mark during first half of current fiscal year.
He informed that private sector credit off-take during the period from July-December, 2018-19 has also witnessed 65 percent growth as compared to 21 percent of last year which is the highest in last 13 years.
The minister said that consumer inflation rate based on Consumer Prices Index (CPI) during first five months of the government of Pakistan Peoples Party was increased by 11.2 percent, it was increased by 4 percent in Pakistan Muslim League (N) regime, whereas the CPI witnessed a nominal increased 0.4 percent in first five months of PTI government.
He said that year on year, CPI percentage for households belonging to lower income groups even declined in the period as compared to the same period of last year, adding that government had tried to provide maximum relief to common man.
He said that current government after coming into power had announced to explore and utilize other alternative sources for economic development and stabilization, besides negotiating with International Monitory Fund (IMF).
The government is still in process of negotiation with IMF and as soon as any suitable programme for the betterment of national economy finalized, the agreement with the Fund would be signed, he remarked.
Besides, he said that government is utilizing other available alternative options for fulfilling the financial requirements of the country and taking different measures for economic development and social prosperity of the country.