Pakistan: PML-N govt ‘fails’ to meets economic targets in first year

* Inflation registered at 8.7% against target of 8.5% * Growth rate of services sector stays at 4.3% against target of 4.6%, agri sector at 2.1% against 3.8% * FBR collects 16% more tax than last year

Official sources have revealed to the Daily Times, on the condition of anonymity, that the PML-N government could not meet any economic target except that of industrial sector during its first year of rule at the federal level. The sources said that the government remained behind targets it had set during the outgoing financial year, 2013-14. This disclosure comes as Finance Minister Ishaq Dar launches the Economic Survey of Pakistan for the outgoing fiscal year today (Monday). Giving details of the incumbent government’s failure in meeting the economic targets, they said that although the economic target was set at 4.4 percent, the government could achieve only 4.1 percent. Meanwhile, inflation rate remained above from the set target.

About the main points of the Economic Survey of Pakistan for the outgoing fiscal year 2013-14, the officials said that inflation during the first 10 months (from July to April) of the ongoing fiscal year has been registered at 8.7 % in comparison with target of 8.5 %, while food and beverages witnessed inflationary hike of 3 percent, while growth rate of agri sector was registered at 2.1 percent against the target of 3.8 percent. Also, the growth rate of services sector remained at 4.3 percent in comparison with the target of 4.6 percent during the abovementioned period. A 3.7 % increase was recorded in the production rate of important crops.

The budget deficit during the ten months of the ongoing fiscal year, 2013-14, remained at 3.2 percent, while current account deficit stood at Rs 2 billion and 60 crores, trade deficit at 16 billion and 10 crore dollars and remittances are likely to stand at 15 billion and 30 crore dollars. A senior official, who wish not to b named, informed this scribe that tax collection by the Federal Board of Revenue (FBR) during the first ten months of the running financial year was registered at Rs 1,745 billion, which is above 16 percent in comparison to the tax collection of this period of last fiscal year. The direct tax collection was recorded at Rs 658 billion, while collection of direct tax share remained at Rs 1,087 billion during the first ten months of the current financial year. “Interestingly, investment rate has been recorded at 14 percent of the GDP (gross domestic product) if compared with rate of investment and economic growth that was registered at 14.6 percent during last financial year. The official added that the annual per capita income has reached $1,387 against $1,329 last fiscal year, while total population of the country is 18 crores and 62 lakhs.

It is worth mentioning that the Economic Survey of Pakistan for the outgoing fiscal year 2013-14 is scheduled to be launched today, and Finance Minister Ishaq Dar will launch the pre-budget document, highlighting the overall performance of economy during the outgoing fiscal year. The survey covers the development of all the important sectors of economy, including growth and investment, agriculture, manufacturing, mining, fiscal development, money and credit, capital markets and inflation and debt and liabilities. It also highlights performance of education, health and nutrition, besides showing the overall population, labour force and employment, poverty, transport and communication.