‘Better security situation, end to energy crisis helped revive investment’

Islamabad: While highlighting the government's two major achievements, Deputy Chairman of the Planning Commission Sartaj Aziz on Wednesday said the visible improvement in security situation and virtual resolution of energy crisis had helped revive investment.
"There's a record flow of Rs748 billion as credit to the private sector in the current fiscal year. Interest rates are also lowest and stable. Many credit rating agencies have upgraded Pakistan’s ranking," he said in the 'Second National Conference on Emerging Macroeconomic Issues in Pakistan: Challenges and Future Perspectives' at the National University of Modern Languages here.
Aziz said another important landmark was the China-Pakistan Economic Corridor, which would bring in investment of almost $60 billion in the next eight to 10 years for energy and infrastructure. "This would help end electricity shortfall and provide reliable support for domestic economic activities and exports. Moreover, the Special Economic Zones alongside of CPEC routes offering exemptions and ease of business will facilitate domestic and foreign investment," he said.
The deputy chairman of the Planning Commission said praising the efforts of the organizers of the conference said the holding of the national conferences on macroeconomic issues would be beneficial in identifying challenges and the future perspectives of economic growth. He said the most positive indicator for Pakistan’s economy was GDP growth of 5.3% in previous financial year which was the highest in last nine years.
"The main indicators of first quarter of 2017-2018 with respect to large scale manufacture and agriculture are encouraging. He added that the overall GDP growth rate this year expected to be close to the target of 6%," he said.
Aziz said inflation rate in past three years has been 4.5, 2.9 and 4.2% compared to 8% in the preceding years and that was partly due to the decrease in oil prices but increase in revenues had also contributed to lower inflation.
He also said that the consolidated fiscal deficit as a percent of GDP has declined from 8.2% in 2012-13 to 5% in the past two years and tax to GDP ratio has also gone up from 9% to 12.5% during this period.
"Against these positive indicators, the balance of payment situation has deteriorated. As exports declined to #21.7 billion from $24.7 billion in 2016-17 while imports have jumped from $40.2 billion to $48.5 billion in the same period. However, the government has taken measures to reduce imports and encourage exports to improve the balance of payment," he said.