Improving economic management: Caretaker prime minister vows to stabilise economy
Officials of finance ministry, SBP chief brief PM on the state of economy.
“Though the primary objective of the government is to hold free & fair elections, the government is cognizant that economic stability of the country is equally important,” says PM. PHOTO: AFP/ FILE
ISLAMABAD:
Caretaker Prime Minister Mir Hazar Khan Khoso on Monday said all-out steps would be taken to improve the country’s economy.
“Though the primary objective of the government is to hold free, fair and transparent elections, the government is cognizant that economic stability of the country was equally important,” he said in his opening remarks during a comprehensive briefing on the state of economy by senior officials of the Ministry of Finance and the State Bank of Pakistan governor at the Prime Minister Secretariat.
The prime minister, who was chairing the third meeting of economic managers, observed that prudent economic policies would be adopted to keep the economy in the right direction.
The prime minister was given a comparative analysis of the economy since 2008. He was informed that foreign remittances were projected at $14.5 billion, up from $4.6 billion in 2005-06. Similarly, inflation, which was hovering around 20%, has been brought down to 9%. The Karachi Stock Exchange was booming, stimulated by reports of new portfolio investment by foreign investors.
Finance Secretary Nasir Khosa said inability to increase the tax-to-GDP ratio, which was around 9.5% of GDP, was a serious concern. The gross domestic product of the country was estimated at Rs23 trillion per annum.
The economic managers told the premier that Pakistan was meeting its international obligations and foreign exchange reserves stood at $11.7 billion. However, the economy was coming under pressure due to increase in expenditure and low revenue collection.
This was compounded by a high salary bill, which had doubled in the last five years from Rs180 billion to Rs340 billion. Also more than Rs2 trillion had been provided in subsidies including those to the power sector.
State Bank Governor Yaseen Anwar, in his briefing about monetary situation of the country, said because of stringent management control put in place by the State Bank, the currency market had demonstrated stability.
Anwar gave a presentation on streamlining and improving the procedure for foreign remittances in order to facilitate Pakistanis working abroad in sending money to their loved ones at home.
He said the State Bank was making efforts to encourage the use of official channels by overseas Pakistanis, as opposed to the informal channel of Hundi, which the central bank was trying to replace with the Pakistan Remittance Initiative.
PRI is an initiative of the government under which both the sender of money and the beneficiary are exempt from transfer charges.
The finance secretary said his ministry had released Rs3 billion to pick up transfer charges involved in the telegraphic transfer of money and would also release another Rs2 billion on this account, which would provide comfort to the State Bank of Pakistan.
Published in The Express Tribune, April 9th, 2013.
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Caretaker Prime Minister Mir Hazar Khan Khoso on Monday said all-out steps would be taken to improve the country’s economy.
“Though the primary objective of the government is to hold free, fair and transparent elections, the government is cognizant that economic stability of the country was equally important,” he said in his opening remarks during a comprehensive briefing on the state of economy by senior officials of the Ministry of Finance and the State Bank of Pakistan governor at the Prime Minister Secretariat.
The prime minister, who was chairing the third meeting of economic managers, observed that prudent economic policies would be adopted to keep the economy in the right direction.
The prime minister was given a comparative analysis of the economy since 2008. He was informed that foreign remittances were projected at $14.5 billion, up from $4.6 billion in 2005-06. Similarly, inflation, which was hovering around 20%, has been brought down to 9%. The Karachi Stock Exchange was booming, stimulated by reports of new portfolio investment by foreign investors.
Finance Secretary Nasir Khosa said inability to increase the tax-to-GDP ratio, which was around 9.5% of GDP, was a serious concern. The gross domestic product of the country was estimated at Rs23 trillion per annum.
The economic managers told the premier that Pakistan was meeting its international obligations and foreign exchange reserves stood at $11.7 billion. However, the economy was coming under pressure due to increase in expenditure and low revenue collection.
This was compounded by a high salary bill, which had doubled in the last five years from Rs180 billion to Rs340 billion. Also more than Rs2 trillion had been provided in subsidies including those to the power sector.
State Bank Governor Yaseen Anwar, in his briefing about monetary situation of the country, said because of stringent management control put in place by the State Bank, the currency market had demonstrated stability.
Anwar gave a presentation on streamlining and improving the procedure for foreign remittances in order to facilitate Pakistanis working abroad in sending money to their loved ones at home.
He said the State Bank was making efforts to encourage the use of official channels by overseas Pakistanis, as opposed to the informal channel of Hundi, which the central bank was trying to replace with the Pakistan Remittance Initiative.
PRI is an initiative of the government under which both the sender of money and the beneficiary are exempt from transfer charges.
The finance secretary said his ministry had released Rs3 billion to pick up transfer charges involved in the telegraphic transfer of money and would also release another Rs2 billion on this account, which would provide comfort to the State Bank of Pakistan.
Published in The Express Tribune, April 9th, 2013.
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