Daily Times

YOKOHAMA: Finance Minister Senator Ishaq Dar has said that the gross domestic product (GDP) growth rate is expected to be above five percent during the current fiscal year, with inflation slashed to single digit at around 4 percent – the lowest in 47 years.

In his address as governor at the second business session of Asian Development Bank’s Annual Meeting of Board of Governors, chaired by Japanese Deputy Prime Minister Taro Aso, the finance minister stated that, additionally, an effective resource mobilisation strategy also helped in increasing tax collections by 60 percent over the last three fiscal years, a 20 percent average annual increase.

“The government, as a result of these efforts, successfully brought down the fiscal deficit from 8.2% in FY2013 to 4.6% in FY2016, and projected at 4.1% for FY2017,” he added.

Despite curtailing fiscal deficit “we have not only maintained but also significantly increased allocation to the social safety net programme from Rs 40 billion to Rs 117 billion and national development spending from Rs 625 billion in FY2013 to Rs 1,600 billion in FY2017”, Dar said.

“Our focus, after achieving macroeconomic stability, is now on realising sustainable, inclusive and higher growth, and the country’s target is to reach the GDP growth rate of 7% by FY2019,” he added.

“Our economy continued to maintain its growth momentum above 4% for the third year in a row, with real GDP growing at 4.71% in FY2016, the highest in eight years,” he noted, and added, “Pakistan’s economy is on the rise and we are open for business, offering attractive investment opportunities.”

Referring to the ADB’s 50th anniversary – an occasion to celebrate the bank’s achievements, the minister extended felicitations to the ADB president, fellow governors and the bank management on their contributions towards economic development and poverty reduction in Asia-Pacific region over the past 50 years.

Only in last two decades, Asia registered 7% growth rate, average per capita income increased from $1,600 to more than $4,980, and based on income below $1.25 per day, poverty line fell from 54% to 22%, he added.

“It is commendable the way President Nakao and his team is pursuing reform agenda in the setting of medium-term review, Strategy 2020,” he observed, maintaining that the strategy had been realigned to ensure effective implementation by streamlining business processes and undertaking organisational reforms in the wake of emerging development challenges being faced by the Asian-Pacific region.

“We also appreciate the ADF-OCR merger, which has enhanced ADB’s financial resources to provide greater support to developing member countries,” he said.

The minister further said they were impressed by the reforms and initiatives implemented under President Nakao’s leadership and “Pakistan looks forward to enhancing partnership with the ADB and fellow member countries”.