Pakistan shows a moderate growth of 3.3% growth in FY19 – MoF
The steps being taken will benefit the common man in the longer run, said the Ministry of Finance.
Due to the government’s macroeconomic adjustment and demand management policies for stabilization, the impact has already started to make its impression. Pakistan has shown a moderate growth of 3.3% growth in FY19, says the Ministry of Finance.
According to the statement issued by the ministry, the government is taking sustainable steps to curb inflation, improve economic activities, strengthen security net, create employment opportunities, and the contraction of trade and fiscal deficits.
The ministry said that the results and economic progress must be judged on the situation that the incumbent government inherited when it stepped into the office. The steps being taken in the first year have yielded significant results and have even ”turned the wheel in various sectors of the economy”, benefitting the business owners and the common man.
Finance Division rejects the news report:
In the recent statement, the Finance Division also rejected “Voters, traders feeling the pain of the government’s economic plan” – an article which was published in an online international paper.
The Division responded that when the government took office, the economy was facing multiple challenges relating to the fiscal, external and real sectors of the economy. Hence, the macroeconomic imbalances and structural reforms needed urgent policy action.
To tackle the challenges, the government carved out a comprehensive set of economic and structural reforms, which lead to gradual but sustainable impacts and moderate growth of 3.3% was witnessed.
The Finance Division said that the media reports when speaking on the price hike, do not consider the causes behind it. They said that the major reasons behind rising inflation are the sustained pressures on twin deficits. It required the government to adjust administered prices upwards.
They also had to impose a regulatory duty on imported items, supply constraints of certain food items and the imposition of FED on cigarettes and the impact of rising in fuel prices and exchange rate depreciation.
The government also implemented sagacious expenditure management and contractionary monetary policy in an attempt to compress the aggregate demand. To this effect, the State Bank of Pakistan raised the policy rate to 13.25% to arrest inflationary pressures.
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