10-year targets planned for economic uplift: Dr Ashfaque

Economic Adviser to Ministry of Finance and Director General Debt Office Dr Ashfaque Hasan Khan said on Saturday the government has planned ten year targets for economic uplift.
Delivering a lecture on "Future of Pakistan - Challenges and Opportunities" at a seminar at a local hotel, he said that the government plans to keep the GDP at 8.2 percent and investment growth at 29.5 percent while per capita income at $2,146 in 2016-17. He said efforts are on to keep budget deficit at 2.7 of the GDP, Public debt at 31.5 percent and current account deficit at 2.5 percent.
Talking of challenges, Dr Ashfaque said that, Pakistan needs to expand tax to GDP ratio from 12 percent of GDP to 17 percent of GDP in next ten years. He was of the opinion that future mega projects like large dams could not be finance with broadening existing tax base.
Similarly, country needs to focus on increasing investment to maintain 7 to 8 percent GDP growth in next ten years, he added. Economic adviser said trade to GDP ration has also needed to be improved by enhancing country's exports. For this purpose, quality and pricing of exports need to be improved, he observed.
Referring to a negative propaganda about the economy on media by the opposition and the so-called economic experts, he warned that these efforts can lead to derailing of country's economy.
He said that it has taken eight years to revive country's economy, but it will take no time to slide back if negative propaganda continued. He said that Pakistan's economy had also been derailed back in 1968 and after 40 years this has been brought back on track. Now the country is moving for a sustainability in vital economic indicators after economic revival, he added.
He said a negative campaign continued on media showing only a negative and incorrect picture of the economy. On the contrary, country's economy was showing signs of buoyancy.
He said during previous government, no international institution was ready to roll over debt for 30 days. Now they are oversubscribing for 30 years Pakistan papers, he added. He also underlined the need for investment on people to improve their talent.
Giving a broad picture of the economy, he said that current account deficit was not a problem as sufficient foreign direct investment (FDI) and home remittances are flowing in. He said that public debt has come down from 63 percent of the GDP in 1999 to 53.4 percent of GDP in 2007.
Dr Ashfaque said that budget deficit was 7 percent in 80's and 90's. Now it has come down to 3.5 percent of the GDP. Interest payments were 51.2 to GDP in 1999-2000. Now they are 25.4 percent in 2006-07.
He said this rate should have been 18 percent if the excessive borrowings of the past are deducted. We are paying for the sins of the past, he added. Talking of the inflation, he said that inflation was very high at 13 percent in 1994-95. This was averaging at 7.8 percent in 2006-07. He said that food inflation was 10.3 percent in 2006-07, despite the fact the global food inflation was 16.1 percent, he added.