The government has restored the country's financial sovereignty, improved macro economic environment and brought the debt burden under control in a short span of time," spokesman and economic adviser to the finance ministry Ashfaque Hassan Khan told Business Recorder here on Thursday.
Talking to this scribe about one year performance of Shaukat Aziz government, he said that the year had posted several multiyear "firsts" in extremely difficult external environment caused by the unprecedented rise in oil prices.
"The public and external debt burden has declined to their lowest in decades and passing of the Fiscal Responsibility and Debt Limitation Law is a landmark achievement" Ashfaque stated.
The adviser to finance ministry said that the fastest pace in real GDP growth (8.4 percent) supported by a strong growth in large scale manufacturing (15.6 percent); a sharp pick up in agriculture (7.5 percent); a continuing robust performance in services sector (7.9 percent); an extra-ordinary strengthening of consumer demand; double digit growth (12 percent) in per capita income in dollars term reaching $736 and stability of exchange rate were among the most important achievements of the government.
He said that various factors including accommodative monetary policy, financial discipline, consistency and continuity in policies, strengthening of domestic demand, continuously improving macro-economic environment, a stable exchange rate and growth in exports had been responsible to sustained high growth in large-scale manufacturing.
Ashfaque Hassan said that the government had been very successful in reducing the public debt burden, external debt and foreign exchange liabilities as Pakistan's external debt and liabilities stand at $35.8 billion (thirty five point eight) and the external debt and liabilities as percentage of foreign exchange earnings declined sharply to 137 percent in 2004-05 from 347 percent in 1998-99. - much worse than many highly indebted poor countries (HIPCs).
The finance ministry spokesman said that country's current account balance slipped into red in 2004-05 after posting surpluses for three consecutive years from $1.31 billion to $1.77 billion due to widening trade gap, higher freight charges by international shipping lines and growth in personal travel by middle and high-income group.
He said that the workers remittances - the second largest source of foreign exchange inflow after exports - continued to maintain a rising trend and totalled $4.2 billion in a year under review which helped Pakistan build its foreign exchange reserves and keeping exchange rate stable.
Ashfaque Hassan said that government also witnessed 8 years high inflation of 9.3 percent and food inflation was recorded at 12.5 percent caused by high oil prices, greater demand of commodities and shortage of wheat.
However, he said that Pakistan Social and Living Standards Measurement (PSLM) Survey indicated much improvement in literacy rate, gross and net enrolment in primary, middle and matric levels, access to sanitation and safe drinking water, use of electricity and gas as source of lighting and cooking fuel, child immunisation and treatment of Diarrhea for the past 4-7 years.
He said that for poverty alleviation and more employment opportunities the government has launched the Khushhal Pakistan Programme (KPP), Tameer-e-Pakistan, one village one product, technical education and vocational training, clean drinking water for all, Anti-hepatitus, village electrification, Mega-city development and livestock development programmes.