Economic indicators on positive trajectory: Abdul Hafeez Shaikh

He said the fiscal deficit has also witnessed reduction as compared to previous year.

(Web Desk) – Advisor to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said on Monday that economic indicators of the country were on positive trajectory with growth rate projected to increase.

He addressed a news conference in Islamabad along with Minister for Economic Affairs Hammad Azhar, Federal Bureau of Revenue (FBR) Chairman Shabbar Zaidi and Special Assistant to the Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan.

Shaikh said that the external trade deficit has been continuously reducing along with increase in dollar reserves of the country.

He said the fiscal deficit has also witnessed reduction as compared to previous year.

He said the revenues collected by the FBR have been trending upwards. He said the exchange rate of the rupee has been stabilising. “The situation of the stock market is also satisfactory and index gradually increasing.”

The advisor said a good deal was struck with traders as they were given incentives and also urged to become part of the documentation drive.

On the fiscal side, he said, $2.1 billion of debt was returned in order to keep the credit rating of the country high. He said no money was borrowed from the State Bank of Pakistan (SBP) since the last four months.

As a result, it gave a go ahead to the second tranche of the IMF package.

The advisor said the President of the World Bank Group (WBG), in his recent visit to the country, hailed the reforms achieved in the FBR, the SBP and the power sector among other sectors.

He said the government has decided to allocate extra Rs30 billion as subsidy for the Naya Pakistan Housing Program (NPHP).

Regarding trade activities, Dr Hafeez Shaikh said, an extra amount of Rs200 billion would be given to exporters for subsidy. He said the share of loans given by the SBP would also increase by Rs100 billion for exporters.

He said it has been decided to cancel the Sales Tax Refund Bonds immediately and the amount in the form of cash would be given to exporters to help increase their productivity.

In power sector, he said, Rs250 billion would be given by the government to the electricity producers in order to retire the circular debt.

Replying to a question, Shaikh said the talks between federation and provinces would continue on the NFC award.

He said the share of FATA in the award was being determined after its merger with Khyber Pakhtunkhwa.

Responding to a question, he said the government was cognisant of the increase in prices of essential items and has been working on various options to bring these prices down.

He said a grant of six billion rupees to Utility Stores Network would reduce prices of items of daily use.

Shaikh said the reforms process in the State Owned Enterprises would be made while taking care of the rights of the employees working in the sector.