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ISLAMABAD: Finance Division on Friday described as “incorrect” the impression created in a section of the media that the Pakistan economy is shrinking.
In a statement, the Finance Division has asserted that the macroeconomic adjustment policies introduced by the government to support balance of payment and strengthen the market confidence, which will also move toward higher and inclusive growth.
“The contention of a section of the media talking about “shrinking economy” seems incorrect as the early signs of recovery of economic activities in fiscal year 2020 are very much encouraging,” it said.
On agriculture front, the federal government is implementing “National Agriculture Emergency Programme” and has approved eight mega projects at the cost of Rs.235 billion. This will encourage economic activities in rural areas and create employment opportunities in the country.
Earlier estimates of cotton crop suggest that cotton production will increase at least by three million bales in fiscal year 2020 from last year. All these developments forecast agriculture is likely to rebound and grow more than three percent in current fiscal year
For inclusive growth and to protect the vulnerable segments of the society, various social protection programs through a newly created poverty alleviation division have been introduced.
Under Poverty Alleviation, the government has allocated an additional amount of Rs.80 billion in the country’s social protection spending for 2019-20 which cumulatively reached Rs 190 billion which will also have a spillover effect on private sector activities.
Furthermore, tax collection during the period has so far been 16 percent higher than the tax collection of the same period last year. It is also clarified that the numbers regarding circular debt have not been finalised as yet and it is premature to say that the target has not been achieved.
