Cabinet praises ?statesmanship? of PM in handling Leaks crisis
 

Nawaz says his election campaign doesn’t revolve around hollow political sloganeering but service to common man; emphasises ‘poor-friendly and common man’s’ budget; GDP growth expected to surpass 5.2 to 5.3pc; 6pc GDP growth envisaged for 2017-18, 6.5pc for 2018-19 and 7pc for 2019-20



ISLAMABAD: The federal cabinet that took up outlines for the next year’s fiscal budget in its significant meeting here on Thursday eulogised the statesmanship of Prime Minister Muhammad Nawaz Sharif in handling the national issues, including the DawnLeaks.

The federal cabinet also discussed the overall political situation in an informal way while the law and order situation also came up for brainstorming. Nawaz, who chaired the meeting that was scheduled at comparatively short **tice, said the focus of the next year’s budget would be on achieving higher, sustainable and inclusive growth.

He directed the cabinet members to accord priority to the areas under their domain that could lead to improved eco**mic growth and generate additional employment opportunities. He made it clear that his government’s election campaign doesn’t hover around hollow political sloganeering but eco**mic activities and service to the common man.

“The members of the cabinet should step up their efforts to concentrate on eco**my related activities for ensuring prosperity,” he added. The federal cabinet focused its attention on the ‘Budget Strategy Paper 2017-20’ that was worked out by the relevant ministries. Nawaz said the government was determined to increase investments in both human and physical infrastructure. In this regard, the highest priority would be accorded to increase in development budget and poverty reduction.

He said the time had come for the nation to reap the benefits of eco**mic policies of the government. He asked the cabinet members to suggest measures which would discourage Hundi and other informal channels for money transfers leading to increased foreign remittances through regular channels.

He appreciated market capitalisation in the stock exchange that would soon touch $100 billion. Finance Minister Senator Muhammad Ishaq Dar said the government had devised a medium-term macro-eco**mic strategy to increase foreign reserves and reduce fiscal deficit.

He said as per the Fiscal Responsibility and Debt Limitations Act, the fiscal deficit of the Federal Government would be brought down to 4% of GDP by June 2020. The upcoming budget will demonstrate fiscal prudence while focusing on key investment sectors such as CPEC, energy, communications, poverty reduction etc. He said fiscal prudence will provide impetus to lower inflation, higher investments and low public debts.

Dar also said that the government had initiated a study on revaluation of the GDP as many sectors were currently **t fully recorded in the national accounts. For the budget year 2017-18, he said the government would aim to achieve 6 percent of eco**mic growth and enhance efforts to increase revenue generation. The meeting was also informed about the government’s resolve to provide incentives to the farmer community for enhancing agriculture productivity.

It was apprised that the prime minister’s agriculture package had yielded a positive impact on the agriculture output as demonstrated by bumper crops of sugar-cane, wheat and maize.

Finance Secretary Tariq Bajwah made a detailed presentation on the current state of eco**my, outline of the budget 2017-18 and the medium-term macroeco**mic framework.

He apprised the cabinet that despite challenges, Pakistan’s eco**my was moving in the right direction. He said the inflation had been contained to 4.09% in the first nine months of the current financial year.

He said the credit to private sector had grown by 53% and agriculture credit had risen by 23% in the first ten months as compared to the same period last year.

In order to achieve 6 percent of eco**mic growth, the finance secretary said that the measures will be taken to enhance growth in agriculture, industrial and services sectors of the eco**my.

Nawaz who had hectic day at the Prime Minister House Thursday chaired nine back-to-back meetings in the day before leaving for Lahore on his way to Chicha Watni where he addressed a mammoth public gathering and an**unced several developmental projects.

He is leaving for five-day visit of China on the invitation of Chinese President Xi. He also chaired a huddle where the subjects related to the visit was discussed thoroughly, the sources pointed out. He also held a small meeting of important federal ministers later.

He emphasized a “poor-friendly and common man’s” budget for the next year.

Nawaz directed the eco**mic managers to prepare an incentives package for bringing more remittances through official channels, boosting exports and increasing outlay of development programs.

The government envisaged current account deficit at over $9 billion for the next budget.

With total outlay of budget to the tune of Rs4.72 trillion, the government has envisaged FBR's revenue collection target of just over Rs4,000 billion. The budget deficit will be curtailed at below four percent of GDP for the upcoming budget.

After approving the Budget Strategy Paper (BSP) for 2017-20, Federal Minister for Planning Ahsan Iqbal told The News that Pakistan had crossed 6 to 7 percent of GDP growth only when it had received foreign aid in dollars for becoming an ally in wars during tenure of dictators but it would be second time under the democratic rule of PML-N when the country was poised towards higher growth trajectory of 6 to 7 percent as earlier Pakistan had achieved higher growth in 1991 after undertaking major eco**mic reforms.

“Under the BSP, we have envisaged 6 percent GDP growth for 2017-18, 6.5 percent for 2018-19 and 7 percent for 2019-20,” added the minister.

He said the GDP growth was expected to surpass 5.2 to 5.3 percent in the wake of improved performance of agriculture and industrial sector. All agriculture crops performed well and bumper wheat crop will help for jacking up growth up to 5.3 percent for the outgoing fiscal year.

“The premier directed the finance ministry to consider jacking up outlay for development purposes up to four digits (Rs1000 billion) against our demand of Rs1,135 billion for the upcoming budget.”

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