He stated this while chairing a meeting of Economic Advisory Council held here today under which it also reviewed the overall economic situation and got subsequent suggestions for upcoming budget of 2012-13.
Dr. Abdul Hafeez Shaikh assured the council that his economic team is doing its best for the country without taking into account any political biasness.
The Finance Minister informed the council about the perceptions and realities regarding economic performance of the government.
He highlighted that media is continuously creating negative perception among the masses on our economic performance, while realities are different.
The meeting started with brief presentations by each member of economic team.
The Chairman FBR informed the council in a detailed presentation about the overall performance of FBR in this year.
He also informed about the ways and means to achieve the targeted tax collection.
He highlighted about the measures taken by FBR to expand the revenue collection.
The second presentation was presented by Secretary Finance about the economic performance of his ministry.
He gave a critical overview about all economic indicators. He informed that Real GDP in FY2011 was 2.4 percent, target of FY2012 is 4.3 percent and projected GDP of 2012 is 3.6 percent. Inflation (CPI) stood at 13.9 percent during FY2011, Target of FY2012 is 12.0 percent and projected inflation in 2012 is 12.9 percent.
The fiscal deficit stood at 6.6 percent in FY 2011, target of FY2012 is 4.0 percent and projected fiscal deficit is 4.7 percent.
He informed the council that losses to economy caused by recent flood are partially mitigated by good performance of agriculture sector in Punjab.
He also talked about the expected measures which will reduce the deficit.
Some measures are austerity measures in expenditure, Auction of 3G license, tariff and fuel adjustments and recovery from Coalition Support Fund.
The Secretary Planning and Development Division briefed the Economic Advisory council on overview of Public Sector Development Plans (PSDP 2011-12).
He presented an outline of twenty mega projects under PSDP. He informed that foreign aid to PSDP has been increased to a significant level, which is reducing the overall burden on our existing financial resources.
He discussed in detail the hurdles like political and bureaucratic pressure, poor project appraisal, over run cost of projects etc, faced by planning commission in overall project planning and implementation process.
Governor state Bank of Pakistan reiterated the facts presented by other members of finance team.
While talking on monetary policy, he said that our banking sector seems resilient and soundness of our banking sector is looking good despite the European financial crisis.
He also informed that some other foreign banks are in pipeline to operate and invest in Pakistan.
The members of the Economic Advisory Council which included, Ms. Shamashad Akthar, Ms. Ayesha, Nasim Baig, Hussain Ali Chandio, Shoaib Sultan, Ali Habib, Mr. Bashir and other experts gave comments and multidimensional suggestions in different specific aspects of national economy.
A detailed discussion was made by different members on specific matters regarding decreasing local investments, issues of large scale manufacturing sector and auto mobile industry, utilization of social safety nets, problems of agriculture sector in context of exports and fertilizers.
Suggestions on tax related matters and balance of payments were also given in detail by the different members.
Finance Minister informed council that government's over all Annual Development Plans (ADP) and tax related measures are fair and free from any political objectives.
While concluding the meeting, Finance minister constituted small groups which will work and give suggestion in specific areas for upcoming budget during next meeting.
One group headed by Nasim Baig will look into the matters of Balance of Payment and will give suggestion in next meeting.
Second group will provide some concrete suggestions on different concerns raised in manufacturing and industrial sector.
Third group will look into the matters of capital market. Fourth group will cover provincial financing and coordination and fifth group will work on social safety nets.
All groups will give suggestions on their allocated areas in next meeting.
It was also decided that the council will meet frequently and the next meeting is scheduled to be held on 7th of April.
