The government expects to achieve the growth target of 3.5 percent in this fiscal year on the basis of the measure such as Kissan package, industrial support, export promotion, encouragement of the IT sector and resource mobilization.
The monthly Economic Update and Outlook of the Ministry of Finance, issued on Wednesday says that although the fiscal year 2022-23 was challenging yet it has witnessed important fiscal and current balance improvements.
The government took a number of unpopular and difficult decisions to keep the economy of country on the track.
The report says that for achieving higher and sustainable economic growth, the government will have to take prudent and effective economic decisions, political and economic certainty would be must and there should be the continuation of friendly economic policies along with enough foreign exchange financing.
The IMFÂ’s approval of the Stand-by Arrangement which resulted the inflows of bilateral and multilateral funds paved way to improve macroeconomic environment and confidence of economic agents.
The report says that the Federal Board of Revenue has been successful in maintaining the tax collection growth of 16.6 percent and non-tax grew by 31 percent due to the governmentÂ’s effective resource mobilization strategy despite the decline in imports, slowing activities of Large Scale Manufacturing and overall slow pace of economic activities in the country.
According to report, the Consumer Price Index (CPI) inflation came down to 29.4 percent in June from 38 percent in May.
It has been noted that that fiscal front witnessed improvement with the primary deficit reducing significantly from Rs.945.3 billion last year to Rs.112 billion during the first eleven months of the last fiscal year. Monthly Economic Update and Outlook says the Current account Deficit also declined by 85.4 percent as compared to the previous year.