Pakistan’s economy rebounded strongly during the current fiscal year:
Economic Survey 2020-21

ISLAMABAD, (MANEND NEWS): Pakistan’s economy rebounded
strongly during the current fiscal year and posted a growth of around
four percent, which is substantially higher than the previous two years.
Minister for Finance Shaukat Fayyaz Ahmed Tarin, accompanied by
Minister for Industries and Production Makhdoom Khusro Bakhtiyar,
Advisor to PM on Commerce and Investment Abdul Razak Dawood,
Special Assistant to PM on Poverty Alleviation Senator Dr. Sania
Nishtar and SAPM on Revenue Dr. Waqar Masood Khan, launched
Pakistan Economic Survey 2020-21, in Islamabad on Thursday.
According to the Economic Survey, the GDP at the current market
price stands at 47,709 billion rupees showing a growth of 14.8 percent
over the last year.
The agriculture sector posted a growth of 2.8 percent, industries 3.6
percent and services 4.4 percent. In Industry, Manufacturing recorded
8.7 percent growth on account of significant growth in large scale
manufacturing and SMEs. The large scale manufacturing increased by
eight point nine percent.
The construction sector recorded growth of 8.3 percent. The IT sector
witnessed growth of 18. 85 percent which is the highest growth in
comparison with all other industries and the highest in the region.
Shaukat Tarin said FBR collection has seen an increase of eighteen
percent as compared to the last year. The revenue collection has so far
reached 4.2 trillion rupees, expressing the confidence that it will

exceed the target of 4.7 trillion rupees by the end of this financial
year.
During the current fiscal year, the total revenue as percent of GDP
stood at 15.1 percent whilst total expenditures at 23.2 percent. Thus,
fiscal deficit stood at 8.1 percent.
During July-March of this fiscal year, expenditures under the PSDP
stood at 653.9 billion rupees.
Shaukat Tarin said remittances grew by 29 percent this year, which
shows overseas Pakistanis’ trust in Prime Minister Imran Khan. He said
the remittances have so far reached 26 billion dollars and these are
expected to increase to 29 billion dollars by the close of this fiscal
year.
The Survey revealed that Pakistan’s exports bounced back after a
sharp hit during strict lockdown in the last fiscal year, mainly due to
export oriented government policies and strong economic recoveries.
By April, exports were amounted to 20.9 billion dollars as compared to
18.4 billion dollars in the same period last year which shows an
impressive growth of 13.6 percent.
The imports stood at 44.7 billion dollars during the ten months of
current fiscal year as compared to 37.9 billion dollars in the same
period last year.
He said the inflow of dollars including through exports helped maintain
the current account deficit in surplus over the last ten months.
Foreign Exchange Reserves stood at 22.7 billion dollars in the first ten
months of current fiscal year. Out of this, the SBP’s reserves were
15.6 billion dollars whereas reserves held with the commercial banks
were 7.1 billion dollars. Pakistan’s rupee strengthened against the
dollar, effectively appreciating the rupee by 9.5 percent.
Shaukat Tarin said the total debt stood at 38 trillion rupees by the end
of March this year, including 25 trillion rupees local debt and 12.5
trillion rupees foreign debt. There has been an increase of 1.7 trillion
rupees in loan during this period as compared to 3.7 trillion rupees in
2019-20, which shows reduction in loan growth. He said foreign
currency debt decreased by 700 billion rupees as compared to the
previous year.

The Survey disclosed that health related expenditure increased by
14.3 percent. Under this year’s PSDP, allocations of 20,193. 9 million
rupees were made for seventy one health sector projects.
The government earmarked 29.5 billion rupees for the Higher
Education Commission to implement 144 development projects of
Public Sector Universities. The literacy rate in urban areas is 74
percent whilst in rural areas it stands at 52 percent.
In the wake of COVID-19, the government disbursed 179.8 billion
rupees as one time emergency cash assistance to 14.8 million
beneficiaries who were at the risk of falling into the extreme poverty.
Under Kamyab Jawan Youth program, the government disbursed 8,566
million rupees by April this year for businesses.
The Finance Minister said one billion trees have been planted under
Ten Billion Tree Tsunami project.
Shaukat Tarin said the government better managed the Covid-19,
which kept the businesses going and confidence high.
Expressing satisfaction over the trends in Pakistan Stock Exchange, he
said it has emerged as the best in Asia.
He said there are 182 million cellular phone users and 100 million
broadband subscribers in the country.
Shaukat Tarin said it was due to the farsighted and prudent decisions
that the country saw economic recovery.
He said incentives were especially given to different sectors, including
construction, manufacturing and textiles besides interventions were
made in agriculture sector. Bumper crops of wheat, sugarcane and
maize gave a push to the agriculture growth.
Shaukat Tarin said the government’s stabilization program remained
successful but now we will shift to growth. He said we will have to
target higher growth to provide job opportunities to the youth.
The Finance Minister said there will be special interventions in the
budget to take care of the poor segments of the society and bring
improvement in their living standards.

Shaukat Tarin said despite increase in the prices of commodities such
as crude oil, palm oil, sugar, wheat and tea in the international
market, these have not been fully passed on to the consumers.
Shaukat Tarin said our vision is to make Pakistan food exporter
country by supporting the agriculture sector. He said the government
is also establishing strategic reserves of major commodities to check
their prices.
The Finance Minister said the government is giving importance to
better manage the power sector and address the issue of circular debt.
Shaukat Tarin said six SEZs under the CPEC are ready to receive
investment. He said we are encouraging the Chinese friends to make
their investments in the zones, stressing that bolstering exports is
important for the economy.

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