Macroeconomic Working Group to present realistic picture of economy to government

The "Macroeconomic Working Group" of the Ministry of Finance has decided to present a realistic picture of the economy to the political regime for highlighting possible gains of economic reforms, putting the country on the path of self-reliance.
Sources told Business Recorder here on Tuesday that the "Macroeconomic Working Group" of the Finance Ministry is reviewing the macroeconomic indicators based on authentic data. Finance Ministry is in the process of finalisation of "Financial Programming Framework" and projections for the next five fiscal years 2010-15 on GDP, inflation, revenue, fiscal deficit, deficit financing along with balance of payments.
Following completion of "Financial Programming Framework", it would be presented to the Federal Cabinet for formal discussion and approval. Sources said that the economic team of the Finance Ministry has decided to inform the political leadership on economic challenges including borrowing, budget deficit, balance of payments situation and deteriorating tax-to-GDP ratio. The data would help economic managers to gain maximum support from the political leadership for reforms which would bring the country out of the present situation and would put the country on a path to sustainable growth and self-reliance.
Sources said that recently two meetings were held at Planning Commission and Ministry of Finance to discuss the forecast of macroeconomic variables. The forecast variables have been sent by various members of the macroeconomic working group. The forecasts will be fed into the 'Financial Programming Framework' to produce consistent macro forecasts and will be presented to the Cabinet as part of the Budget Strategy Paper.
During the meetings, Sakib Sherani, Principal Economic Adviser, presented the macroeconomic overview, highlighting the key risks and challenges. Nohman Ishtiaq also presented the forecast variables related to GDP, Inflation, Revenue, Fiscal Deficit, Deficit Financing and Balance of Payments that were forwarded by various members of the "Macroeconomic Working Group".
There was disagreement on the economic forecasts and it has been decided that the Budget Wing of the Ministry of Finance would firm up the fiscal forecasts. The target plans and forecasts, together with key assumptions and sensitivities, will be produced to arrive at realistic fiscal deficit and deficit-financing targets.
The Economic Affairs Division has been given assignment to forward external financing forecasts for at least 3 years within next few days. These forecasts will be used to project the deficit financing. The Planning Commission has been asked to revisit the growth forecasts, keeping realistic assumptions.