ISLAMABAD – Advisor on Finance Dr Abdul Hafeez Shaikh says economicindicators have shown significant improvement in last five months and arebeing acknowledged by international financial institutions.
Addressing a news conference along with Minister for Economic AffairsHammad Azhar and Chairman FBR Shabbar Zaidi in Islamabad on Tuesday, hesaid current account deficit reduced by 35 percent last year and has seenmore improvement in the last five months.
Dr Hafeez Shaikh said portfolio investment and Foreign Direct Investmentare also seeing upward trajectory.
He said World Bank’s President during his visit to Pakistan appreciated theeconomic performance. He also indicated to further improve relations of thebank with Pakistan.
Advisor on Finance said Asian Development Bank, which is one of the biggestdevelopment partners of Pakistan, has increased its financing to Islamabadby 3 billion dollars after seeing the progress.
Dr Hafeez Shaikh said IMF team during its visit reviewed the economicperformance and expressed satisfaction on not only meeting the targets butalso surpassing these.
Consequently, they recommended their board to release the 500 milliondollar tranche to Pakistan on immediate basis.
Dr Hafeez Shaikh said world renowned rating agency Moody’s has upgradedPakistan’s credit rating from negative to stable.
He said the whole world gets the knowledge that the economic reformsprocess in Pakistan is well on track and is being appreciated byinternational financial institutions.
He said the portfolio investment has seen investment of around one billiondollars.
Dr Hafeez Shaikh said the trust of the domestic investors has alsoincreased on economic policies of the government. He said the reserves ofState Bank of Pakistan are also seeing increase.
He said revenue collection increased by 16 percent in last five months.
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He expressed optimism that non-revenue target of 1200 billion rupees willbe achieved.
Dr Hafeez Shaikh said electricity and gas are being subsidized by thegovernment to increase business and exports of the country.
He said government has decided to give 300 billion rupees to businesscommunity at subsidized rates as loans to spur the economic activities.
Responding to questions, Finance Advisor said price of petrol was notincreased in last four months out of five.
He said government is providing subsidy to seventy five percent ofelectricity consumers.
The Advisor said tax refunds worth thirty billion rupees were distributedamong the businessmen in cash form.
Minister for Economic Affairs Hammad Azhar speaking on the occasion saidbringing Pakistan out of economic crisis was a big challenge but now we aremoving towards stability.
The Minister said FBR’s revenue growth has witnessed 17 percent increase.
Responding to a question regarding export refunds, Chairman FBR ShabbarZaidi said refund system has been made automated and no human has any rolein it.
He said FBR is working to address issues regarding submission forms ofexport refunds.
