Finance Minister Ishaq Dar presented the budgetary proposals for financial year 2015-16 before the National Assembly on Friday. Public Sector Development Programme of Rs700 billion for the next financial year has already been approved. 5.5% growth rate would be the target to get for next year, with historically low interest rates and infrastructure spending expected to fuel the fastest expansion since the global financial crisis.
A day earlier, Economic survey 2014-15 was unveiled and Minister for Finance admitted for missing out on the GDP growth target, tax revenues, exports and foreign direct investment, he put most of the blame on flash floods, political uncertainties, five months of sit-ins and a decline in prices of oil and other commodities. The per capita income jumped up to $1,513 in the outgoing fiscal while the cost of war on terror increased to $107 billion during the last 14 years. The CPI-based inflation rate averaged at 4.8 percent during July-April 2014-15 against 8.7 percent in the same period of the last year. This is the lowest level of inflation after 2003. The unemployment rate stands at six percent.
It should be worrying sign for the government to figure it out the reason of massive decline of private sector from Rs371 billion to Rs 162 billion in last fiscal year. A comprehensive study must be conducted in this regard and private sector must be encouraged. GDP growth remained at 4.24 percent against the desired target of 5.1 percent for the outgoing fiscal year. Agriculture posted growth of 2.9pc, industry 3.6pc and services 5.0 percent as compared to 2.7, 4.5 and 4.4 percent respectively.
6.7 million Children are out of school, women literary rate is 47% and male 70% means more human and financial resources are required to attain the gender parity.
The Economic Survey did not reflect population figure and what percentage is living below the poverty line. It is dilemma that government is dependent on Pakistan Baitul Mal, BISP, EOBI, and WWF for poverty alleviation and no proper strategy exists.