Exports of goods likely to cross $ 24bn mark

ISLAMABAD: The Federal Cabinet on Wednesday was informed that exports have increased by 25 per cent in the last nine months and at this pace, are likely to cross $ 24 billion by the end of present fiscal year.

Briefing the journalists about the Cabinet meeting, Information Minister Dr Firdous Ashiq Awan said that remittances are also showing historic performance and likely to cross US$ 11 billion and Foreign Reserves stand at $ 17.5 billion.

These developments have contributed to the stability of the Pakistani rupee which is maintaining its value at Rs.85-86/US$.

She said that the cabinet was briefed in detail about the outline of new strategy under consideration for the next year's budget and the Budget Strategy Paper 2011-2014 was presented during the meeting by the Finance Division.

Dr Firdous Ashiq Awan said that Federal Finance Minister Abdul Hafeez Sheikh apprised the Cabinet about the salient features of the Budget Strategy Paper 2011-2014.

According to Budget Strategy Paper,despite formidable and devastated floods, the economy is bouncing back and there are encouraging developments that augur well for its future performance of the economy, the minister said.

The minister said that the Cabinet took stock of the status of implementation of its decisions pertaining to Finance Division during the last three years. The Cabinet was informed that so far Cabinet took 92 decisions pertaining to Finance Division out of which 81 have been implemented while 11 are in the process of implementation.

A detailed presentation was given during the Cabinet meeting by the Ministry of Finance on the Consumer Price Index in the country to oversee and discuss the trend of prices of essential commodities,she said.

Secretary, Finance informed the Cabinet that the inflation is presently stagnant. She said that the government was determined to reduce the inflation to single digit.

The Cabinet approved the Budget Strategy Paper 2011-2014 presented by the Ministry of Finance which was prepared in consultation with all the stakeholders, said Dr Firdous Ashiq Awan.

To revive growth at the earliest, the paper aims at measures such as containing fiscal deficit to 4.5% of GDP in 2011-12 and thereafter to be further reduce it by 0.5% annually; and to raise tax-to-GDP ratio, estimated at 9.1% during this year, and raise it to 10.3% over the next three years.

She said that the Cabinet was informed that as a result of recommended measures the inflation in the country is projected to be lower than 12% in 2011- 12 and economic growth at 4.2% of GDP.