ISLAMABAD - The government has formulated a Medium Term Budgetary Framework for 2013-16 to put the economy on a sustained growth track.
An official document, highlighting the one-year performance of the PML-N government, said that the country was facing strong economic challenges, imbalances, but “our resolve is stronger”
The government was committed to implementing tax reforms, while investors would be given more facilities to make investment in the country, it added.
According to the document, the government under the leadership of Muhammad Nawaz Sharif has succeeded in gaining the confidence of international financial institutions/agencies. “Now, World Bank, ADB and IDB are ready to work with present government in economic and social sectors.” Under this framework, government’s goals by Fiscal Year-2016 would be that GDP growth to gradually rise to around 7 percent, Investment/GDP to rise to 20 percent, fiscal deficit to be brought down to 4 percent of GDP, Pakistan’s foreign exchange reserves to be enhanced to around $20 billion, and Public Debt to be reduced to below 60 percent of the GDP. Reducing domestic borrowing, reduced debt-to-GDP ration, zero borrowing from SBP, and enhanced development spending in current expenditures were also a part of the government’s policy to achieve macro-economic stability.
The document further said that in 2013 PML-N government inherited some major challenges particularly terrorism, lawlessness, power shortages, economic mismanagement, rampant corruption, bad image of the country, unemployment and price hike. However, it said that the government was exploring ways to deal with the energy crisis as the power outage has badly affected the country’s economy, business activities and normal life.
It added that the federal government resolved to eliminate the menace of terrorism, improve economy, address power crisis and develop good relations with all neighboring countries in the region.
“The foundations of the country had been shaken due to maladministration, rampant corruption in every sphere of life and inefficiency of the last fourteen years that had brought national institutions like PIA, Pakistan steel, Railway and WAPDA at the verge of virtual collapse”, the document said. It added that the government under the leadership of Prime Minister Nawaz Sharif pledged to address all these national issues of the utmost important.