Cabinet to approve budget strategy paper today

ISLAMABAD: The federal cabinet will accord approval to budget strategy paper (BSP) for the next financial year 2015-16 here on Tuesday (today).
The Annual Plan Coordination Committee (APCC) will also meet Tuesday to approve development outlay of Rs580 billion as federal share in the Public Sector Development Programme.Next year’s PSDP will include a foreign exchange component of Rs170 billion. The development programme will set aside Rs150 billion for projects falling under Pak-China Economic Corridor (CPEC).
Under macroeconomic plan, the government will fix real GDP growth rate target of 5.5 percent, inflation at 6 percent and investment-to-GDP ratio at 17 percent for the next financial year while savings-to-GDP ratio will be aimed at higher side in the next financial year. The current account deficit will be brought down to one percent of GDP equivalent to $2.9 billion in the next fiscal year.
The CAD came down significantly because Pakistan received $1.4 billion from Coalition Support Fund (CSF) from USA. Foreign remittances in the outgoing fiscal year are projected to touch $17 billion while the target for the next year is set to exceed $18.5 billion.