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Profit Govt approves 3.5pc GDp Growth tarGet for fy 2023-24
Rs 15.00 | Vol XIII No 338 I 8 Pages I Islamabad Edition
Wednesday, 7 June, 2023 I 17 Zilqad, 1444
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NEC APPROVES RS2.709TR ANNUAL DEVELOPMENT PLAN FOR NEXT YEAR
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PROFIT
GOVT ESTIMATES 21PC INFLATION PROJECTION FOR FISCAL YEAR 2023-24
GHULAM ABBAS
HE National Economic Council (NEC), the country’s highest forum for economic decisionmaking, has approved a target of 3.5 percent GDP growth for the fiscal year 2023-24 budget. This growth target represents a significant increase of 1066.67 % compared to the 0.3 % growth rate recorded in the outgoing fiscal year of 2022-23. Despite implementing painful fiscal adjustments and adhering to the reform agenda set by the International Monetary Fund (IMF), the government remains optimistic about achieving this target. The GDP growth rate for the outgoing fiscal year fell significantly to 0.3 %. Minister Ahsan Iqbal, however, defended the realistic nature of the next year’s target, emphasizing that the government’s choices are aimed at stabilizing the country. He made this announcement during a press conference in Islamabad following an NEC meeting chaired by Prime Minister Shehbaz Sharif. Iqbal claimed that the growth target was realistic. “We are taking those choices which take the country toward stability,” he added. The minister did not disclose other budget targets except for the GDP and development spending which he said will be up to Rs 1.15 trillion. According to him the government has estimated a 21 % inflation projection for the fiscal year 2023-24. Iqbal also pointed out the dismal condition of the economy, saying the government would not be able to pay off debt fully through federal revenue in the next year. “This is a defining mo-
ment of where we have reached,” he said. “(The country) will need to borrow for the rest of the budget that includes salaries for the government, defense budget, development budget, pension and subsidies,” he added. He said that the proposals also included a fiscal deficit target of 7.7 percent of GDP and a revenue collection target of Rs 9.2 trillion.
The minister claimed that the NEC was also informed about the development outlook of 2035 under which Pakistan’s economy will be at least $ 570 billion whereas, he believes that the country could be of $ $1000 billion economy by 2035 if the development plan is implemented. Development Budget: During the meeting of NEC on Tuesday, the forum also proposed the
Govt decides inclusion of energy reforms in budget PROFIT APP
The government on Tuesday decided to make energy reforms a part of the budget 2023-24 in order to cut reliance on imported fuel. The decision was taken by Prime Minister Shehbaz Sharif at a high-level meeting on energy-related budgetary proposals that focused on the generation of cheap electricity, relief for consumers, and launch of solarisation projects. The meeting was attended by fed-
eral ministers including Ishaq Dar, Khwaja Muhammad Asif, Engineer Khurram Dastagir Khan, and Maryam Aurangzeb, Advisers to PM Ahad Cheema, State Ministers Dr Musadik Malik, and Ayesha Ghous Pasha, PM’s Special Assistant Tariq Bajwa, Jahanzeb Khan, Chairman Federal Board of Revenue, Chairman WAPDA and the officials concerned. Commerce Minister Syed Naveed Qamar, Governor State Bank of Pakistan and prominent businessmen joined the meeting through video-link. The prime
PM announces mega incentives and job opportunities for IT sector in upcoming budget ISLAMABAD
AHMAD AHMADANI
Prime Minister Shehbaz Sharif on Tuesday set a target for the IT sector to increase its export up to the tune of $4.5 billion for the next year and directed the relevant authorities to include mega incentives for the Information Technology sector in the fiscal budget 2023-24 to boost country’s IT export. In a high-level meeting chaired by Prime Minister Muhammad Shehbaz Sharif, several recommendations and directions were given to boost the Information Technology (IT) sector in Pakistan and increase its export. The premier set a target for the IT sector to achieve an export value of $4.5 billion in the next year, emphasizing the need for significant incentives in the fiscal budget 2023-24. To promote the IT sector, the government plans to introduce a fixed tax regime and has formed a committee to provide recommendations on this matter. Additionally, special incentives will be provided to new business start-ups in the IT industry, along
with concessions for trade and business through modern technology. Recognizing the importance of youth empowerment, the prime minister directed the allocation of a substantial budget for training in the IT sector. Currently, 45,000 young individuals across the country are undergoing IT training, and the government aims to further enhance this initiative. As part of their commitment to supporting youth, the government will distribute 100,000 laptops on a merit basis to facilitate their educational and entrepreneurial pursuits. Furthermore, the prime minister approved the creation of special training IT zones to promote entrepreneurship. These zones will provide an environment conducive to fostering innovative ideas and setting up successful IT-based businesses. The prime minister highlighted the significance of IT-related recommendations in the upcoming fiscal budget, stating that their approval would generate massive job opportunities for the youth. He instructed the relevant authorities to take nec-
essary measures to guide and assist young entrepreneurs in establishing new companies in the IT sector. In order to showcase the potential and opportunities offered by Pakistan’s IT sector, the prime minister directed the organization of IT sector road shows abroad. These shows will serve as platforms to raise awareness among international stakeholders about the favorable conditions and facilities available in the country’s IT industry. The meeting was attended by key government officials, including the Minister for Finance, Minister for Information Technology & Telecommunication, Minister for Information and Broadcasting, PM’s Adviser, Minister of State, and other relevant authorities. Renowned IT experts and representatives from leading IT companies were also present to contribute their expertise to the discussions. With the prime minister’s comprehensive approach towards the IT sector, Pakistan is poised to witness significant growth in IT exports, job creation, and the overall development of the industry.
Govt borrows Rs41b per day on average during one year in office g
DOMESTIC BORROWING UP BY RS7.635TR SINCE APRIL 2022 PROFIT
SHAHZAD PARACHA
The debt stock of the federal government has increased by 34% (Rs14.894 trillion) to Rs 58.6 trillion during the one year tenure of the Premier Shehbaz Sharif government. According to the State Bank of Pakistan (SBP) monthly bulletin, the total debt stock of the Federal government surged by Rs 14.89 trillion to Rs 58.599 trillion including Rs 36.55 trillion of local and Rs 22.050 trillion of foreign debt during the PM Shahbaz Sharif led Pakistan Democratic Movement (PDM) regime from April 2022 to April 2023. The unprecedented growth in government debt means that the incumbent government borrowed an average of Rs 41 billion per day in the last one year to run the government affairs. The data shows that the domestic borrowing went up by Rs 7.635 trillion to Rs 36.549 trillion during
Annual Development Plan (ADP) for the upcoming fiscal year (2023-24) with a total outlay of Rs 2.709 trillion. “The total national outlay contains the development budget of Punjab and Khyber Pakhtunkhwa for only four months due to caretaker set up in the provinces, but if their full budget is included in the ADP, it will exceed the figure of Rs3 trillion,” Minister for Planning, Development and Special Initiatives Ahsan Iqbal said in the post-NEC meeting media talk. Under the ADP, the minister said the federal government will spend Rs1,150 billion under the Public Sector Development Programme (PSDP 2023-24) while the provinces will allocate Rs1,559 billion to execute different development projects. He said Rs1,150 billion under the PSDP was the highest-ever allocation made in the history of the country, terming it a ‘milestone achievement’ of the incumbent government despite severe financial challenges.
the last one year as the government raised Rs 6.007 trillion through issuing of govt bonds during the last year. It is important to note that Pakistan’s total revenue target for the FY23 was budgeted at a mere 7.6 trillion. he debt of government bonds increased from Rs 18.984 trillion to Rs 24.992 trillion during the period. The SBP’s on-lending to GoP against SDRs allocation was maintained at Rs 475 billion during the one year. Unfunded debt including the financial obligations of the National Savings certificates, GP fund and Postal Life Insurance reached to Rs 2.962 trillion, from Rs 3.456 trillion mainly due to retirement of debt during the year. The short term debt of the government also increased from Rs 5.578 trillion to Rs 7.215 trillion during the year. The government raised Rs 1.624 trillion by issuing Market Treasury Bills during the period. The financial obligations swelled from
Rs 5.526 trillion to Rs 7.150 trillion in April 2023 consequently. The external debt increased by almost 50 % or Rs 7.258 trillion from Rs 14.791 trillion to Rs 22.050 trillion. Even though Pakistan did not secure huge external loans, this happened mainly due to freefall of local currency against the USD during the period. According to the calculation of the SBP, the Pak Rupee has depreciated by Rs 98 against USD during this one year. The USD has appreciated against PKR from Rs185 to Rs283, since April 2022. Even though the actual amount of external debt was decreased by $2.0 billion, from $79.65 billion to $77.68 billion, the rupee value of the debt soared by 50%. The government also raised Rs 103 billion through Naya Pakistan Certificates this year, the total obligation of which jumped to Rs 138 billion from Rs 35 billion during the one year.
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minister directed inclusion of measures in upcoming budget regarding control of power line losses and electricity theft. He also ordered the allocation of funds in the budget for the launch of wind and solar energy projects and called for the swift completion of power projects. The meeting was informed that under the government’s solarisation programme for public buildings, four phases had been completed successfully. The steps taken by the government for supply of uninterrupted electricity and gas also came under discussion.
hearing against audio leaks commission: sc reserves verdict on plea for judges’ recusal ISLAMABAD
STAFF REPORT
Justice Munib Akhtar questioned the government’s decision on Tuesday to object to the constitution of the bench hearing petitions filed against the formation of a judicial inquiry commission probing the audio leaks asking whether the government had accepted them as authentic already. A five-member bench of the Supreme Court (SC) reserved its verdict over the government’s application seeking the recusal of three of the judges presiding over the hearing. The larger bench was hearing petitions challenging a judicial inquiry commission probing into the audio leaks allegedly involving current and former members of the superior judiciary and their family members. In addition to Chief Justice of Pakistan Umar Ata Bandial, the bench includes Justice Ijazul Ahsan, Justice Munib Akhtar, Justice Syed Hasan Azhar Rizvi and Justice Shahid Waheed. On May 20, the federal government had formed the judicial commission to probe into over half-a-dozen leaked audio clips allegedly involving some current and former members of the superior judiciary and their family members to determine their “veracity” and “impact on the independence of the judiciary”. The three-man judicial commission is led by SC senior puisne judge Justice Qazi Faez Isa and comprises Balochistan High Court Chief Justice Naeem Akhtar Afghan and Islamabad High Court Chief Justice Aamer Farooq. As controversy surrounded the five-member bench hearing petitions against the commission, the government had sought the recusal of Chief Justice of Pakistan Umar Ata Bandial, Justice Ijazul Ahsan and Justice Munib Akhtar from the bench. Last week, the judicial commission probing into these leaked audio clips had also raised objections to the composition of the SC bench hearing pleas against the commission. “One of the audio clips allegedly pertains to the motherin-law of the honourable chief justice [of Pakistan]. Honourable Mr Justice Munib Akhtar may also be mentioned in the said recording. “And in another audio recording reference is made to case fixation before a particular bench headed by honorable Mr Justice Ijazul Ahsan,” said a concise statement submitted by the commission’s secretary Hafeezullah Khajjak to the SC.
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