Pakistan budget promises pro-business policies

ISLAMABAD: Rising remittances and private investments has been supporting country's economic growth, as federal government has promised to unveil a more pro-business budget for fy-2017.

While the current financial year 2016 moves towards its close on June 30, international analysts and multilateral institutions are praising Sharif's government and forecasting "renewed and continuing economic, business and financial growth" compared to last government's five-year rule which ended in May 2013, reported Khaleej Times.

Report quoting the World Bank's latest country report said: "Fast- growing home remittances and rising investments under the China Pakistan Economic Corridor [CPEC] have supported the country's economic growth. Pakistan's modest economic growth will continue."

The World Bank added however, growth remains below the 5.5 per cent target envisaged in Pakistan's annual plan and the South Asia average of 7.5 per cent. Pakistan's growth is expected to pick up to 4.5 per cent from 4.2 per cent.

The report further added that like the rest of the region, Pakistan is benefiting from high remittances, CPEC investments and from low prices of imported oil, which have reduced the trade deficit despite a notable decline in exports and increased consumption.

According to the report, the budget for fy-17 will encourage people to invest in various industries and with that they will be investing in the people of Pakistan.

The gross domestic product (GDP) is up at five per cent, leaving its former range of two to three per cent. The economy, particularly industrial output, will rise further as the government is moving fast to add 10,000 megawatts of power to end energy shortages. It will add another 15,00mg by 2025.

The investment-to-GDP ratio will be raised further to 21.1 per cent in fy-18. The size of the economy or GDP will be raised from the current Rs30.672 trillion to Rs34.801 by fy-17 and to Rs40 trillion by fy-18.

New investment in the public sector will be Rs210 billion in energy, Rs470 billion on infrastructure development and the social sector will get Rs545 billion.

The overall public and private sector investment will be $3 billion in projects such as gas in fy-17, compared to the current $880 million in fy-16,report added.

This investment will enable Pakistan to build infrastructure such as highways and bridges from its own capital rather than from borrowed money.