A day before announcing the budget for fiscal year 2016-2017, the government on Thursday revealed the Economic Survey 2015-16 to highlight its achievements in the past year.
While the government achieved several milestones, it also missed some important economic targets.
Finance Minister Ishaq Dar said, “According to provisional estimates the GDP growth during 2015-16 remained at 4.71 per cent,” reading the survey, said at a televised press conference.”
The government missed the most important economic target – GDP growth, which was set at 5.1 per cent. However, targets in industrial and service sectors remained stable.
“There has been an ongoing war on terror that has taken priority,” said the finance minister. “We are definitely equipped to hold a census and we will have it done soon. It is a priority.”
War on terror expenses have risen to over $118 billion, adds Dar.
Industrial sector records growth at 6.8%
Industrial sector recorded growth at 6.8% as compared to 4.8% last year.
The target for the industrial sector was set at 6.4%.
Services witnesses growth rate of 5.7%
The Services sector has witnessed a growth rate of 5.7% as compared to 4.37% last year.
Agriculture sector shows decline
The target was evidently missed in the agriculture sector.
“The agriculture growth stood at -0.19% in 2015-16, as compared to 2.5% during the last year. The target was set at 3.9%.
Reflecting on why agriculture growth missed its target by a large margin, Dar pinned the hit on the decline in cotton production, adding that a subsidy package for the sector would be announced.
Dar wheat prod increased from 25.08 million tons to 25.48 ml tons
Fiscal deficit
Fiscal deficit during the nine-month period has remained 3.4 per cent as opposed to 3.8 per cent of the corresponding period last year.
Exports
Commenting on the fall of exports, which have gone down to $18.18 billion (10MFY16), Dar said the quantity had gone up overall. However, the decrease in commodity and oil prices have meant the return has been low.
Inflation expected to remain below 3%
