ID :
11259
Wed, 07/02/2008 - 10:21
Auther :
Shortlink :
http://m.oananews.org//node/11259
The shortlink copeid
Pakistan Premier reiterates resolve to restore macroeconomic stability
Karachi, July 02 PPI: Pakistan's Prime Minister Syed Yousuf Raza Gilani Tuesday reiterated government's resolve to restore macroeconomic stability through proper coordination between monetary and fiscal authorities.
Inaugurating Development Finance Conference, organized by State Bank of Pakistan in
said just concluded fiscal 2007-08 was ``a challenging economic year.'' The country
currently faces four major economic challenges - deceleration in economic growth,
rising inflation, instability in exchange rate, high fiscal and external account
deficits.
``We are committed to address these challenges. High growth in macroeconomic
imbalances testifies that country was living beyond its financial affordability.
These are daunting but our resolve is equally stronger."
He was confident through better coordination between fiscal and monetary
authorities, government will succeed in restoring financial stability in a reasonable time frame.
Gilani said government aims to bring down fiscal deficit to 4.7% of Gross Domestic
Product in current fiscal 2008-09 (FY09) from around 7.0% in last fiscal. "We are
aiming to contain fiscal deficit in range of 3.0% to 3.5% of GDP in medium term
andalso intend to keep economic growth in 6% to 7% range in next five years.
``Our focus will be on quality of growth in agriculture, manufacturing and services
sector. Tackling energy crisis and overhauling of tax policy and tax administration
will be key policy objectives.''
Prime Minister said government will take all necessary measures to promote private
sector development, as ``we genuinely believes private sector is real engine of
growth and main source of employment generation. We should not be in business of
running businesses."
On Federal Budget for fiscal 2008-09, Prime Minister said government has scaled down
and reoriented subsidies. Scaling down subsidies was required to remain within
budget deficit of 4.7%. The reorientation is primarily to provide a targeted subsidy
that aims to provide relief to poor, notwithstanding, over 40% of Government's
fiscal deficit is on account of subsidy bill, he added.
``With SBP's support, commercial banks have managed to promote delivery of
agricultural credit, which is likely to reach all-time high of Pak Rupee 200
billion, and facilitate at least two million borrowers - double the level of last
few years - of which 75% are small borrowers,'' he noted.
Inaugurating Development Finance Conference, organized by State Bank of Pakistan in
said just concluded fiscal 2007-08 was ``a challenging economic year.'' The country
currently faces four major economic challenges - deceleration in economic growth,
rising inflation, instability in exchange rate, high fiscal and external account
deficits.
``We are committed to address these challenges. High growth in macroeconomic
imbalances testifies that country was living beyond its financial affordability.
These are daunting but our resolve is equally stronger."
He was confident through better coordination between fiscal and monetary
authorities, government will succeed in restoring financial stability in a reasonable time frame.
Gilani said government aims to bring down fiscal deficit to 4.7% of Gross Domestic
Product in current fiscal 2008-09 (FY09) from around 7.0% in last fiscal. "We are
aiming to contain fiscal deficit in range of 3.0% to 3.5% of GDP in medium term
andalso intend to keep economic growth in 6% to 7% range in next five years.
``Our focus will be on quality of growth in agriculture, manufacturing and services
sector. Tackling energy crisis and overhauling of tax policy and tax administration
will be key policy objectives.''
Prime Minister said government will take all necessary measures to promote private
sector development, as ``we genuinely believes private sector is real engine of
growth and main source of employment generation. We should not be in business of
running businesses."
On Federal Budget for fiscal 2008-09, Prime Minister said government has scaled down
and reoriented subsidies. Scaling down subsidies was required to remain within
budget deficit of 4.7%. The reorientation is primarily to provide a targeted subsidy
that aims to provide relief to poor, notwithstanding, over 40% of Government's
fiscal deficit is on account of subsidy bill, he added.
``With SBP's support, commercial banks have managed to promote delivery of
agricultural credit, which is likely to reach all-time high of Pak Rupee 200
billion, and facilitate at least two million borrowers - double the level of last
few years - of which 75% are small borrowers,'' he noted.
