Government rejects PEW report on the economy

PM House spokesperson says economy has improved with a growth rate of 3.7%, higher investor confidence, remittances.

ISLAMABAD: The spokesperson of the Prime Minister's House on Monday categorically rejected assertions contained in a recent report of Pakistan Economy Watch (PEW), which said political developments had taken a toll on the economy.

The spokesperson referred to performance of Karachi Stock Exchange on July 2 wherein 100 index of KSE touched an all-time high in six weeks after an increase of 341 points.

Investors, he said, felt especially attracted to fertilisers and cement stocks due to maintenance of Rs197 per MMBTU.

Total trade volume was recorded at 11.62 million shares.

The spokesperson said that fiscal year 2011-12 posted an economic growth of 3.7 per cent, presenting an improvement in last three years. Reduction in inflation from 25 per cent in 2008 to 13 per cent last year and to 11 per cent by the end of the financial year.

The spokesperson also mentioned that a steady growth in remittances, which hit $13 billion, spoke volumes about the confidence of the expatriate community in the government and its economic management.

He said that annual tax revenues also registered an increase of Rs450 billion, which was an increase of 23 per cent than the tax target set for fiscal year 2011-12.