The advisor to the Prime Minister of Finance, Dr. Abdul Hafeez Sheikh, reviewed the country's economic performance during the first three months of the 2020 financial year.
At a press conference in Islamabad, Sheikh said that two major deficits, foreign trade and fiscal, had been controlled in the country.
He said the trade deficit was reduced by 35 percent, while the fiscal deficit was reduced by 36 percent in the first quarter.
Read: The trade deficit is reduced by 35{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} in the first quarter of fiscal year 20
"These are big steps and their positive results have been presented," said Sheikh.
In addition, he noted that revenues had also increased by 16 percent.
"One thing that we have really improved compared to the previous year is non-tax revenue," said the financial advisor.
He revealed that Rs406 billion had been collected in non-tax revenues, representing an increase of 140pc over the previous year.
"We believe that this is a great achievement. In our budget, we have a goal of Rs1.2 billion, but I want to share with you the good news that we will increase this in Rs400bn and we are confident of bringing it to Rs1.600bn."
Read: In the first year, the government sees a record fiscal deficit
On the front of the exchange rate, the prime minister's advisor said he had taken a stable level in the last three months. He also said that foreign exchange reserves had now stabilized.
He said the net portfolio investment in the country had increased after three years by $ 340 million.
"Foreign investors are showing confidence in Pakistan's economy right now," said Sheikh.
The adviser said that the results of government assistance to the export sector were beginning to become visible, particularly in the production of the export sector.
He added that another objective of the government, the employment of Pakistanis abroad, was also going well.
The sheikh said confidence in the stock market had increased. He noted that in the last three months, from August until now, the stock market had risen from the level of 28,000 points to 34,000.
"The results of the difficult decisions made by the government are slowly becoming evident," he said, adding that international financial organizations such as the International Monetary Fund and the World Bank, as well as foreign investors, were now giving positive statements about Pakistan. .
Development Portfolio Meeting
Also on Saturday, Hafeez Shaikh chaired a meeting on reform initiatives aimed at facilitating the government's development portfolio.
During the meeting, the government economic team entrusted the technical teams of the Economic Affairs Division, the Planning Commission and the World Bank with the task of establishing a road map to simplify the structure of the existing approval process for the portfolio of development, a press release issued by the Finance Division said.
The teams have been instructed to identify specific areas of interventions and decisions and inform the forum within a month.
The meeting received a joint presentation from the Division of Economic Affairs and the World Bank on different options to simplify the structure of the existing approval processes of the development portfolio in order to shorten the project conception deadline and at the same time guarantee the presence of the necessary funds, the availability of project personnel and timely acquisitions.
The initiative is aimed at improving the level of preparation so that the implementation of the projects can begin immediately after the approval and signing of the loan agreements.
"The government intends to digitize the entire planning process to accelerate decision-making, which leads to the timely implementation of the projects," the statement said.
The high-level meeting was attended by the Minister of Economic Affairs, Hammad Azhar, the Minister of Planning, Development and Reform, Makhdoom Khusro Bakhtyar, Adviser to the Prime Minister on Institutional Reforms and Austerity, Dr. Ishrat Hussain, and senior officials of the State Bank of Pakistan, Comptroller General of Accounts, Finance Division, PD&R and EAD.
Source: https://www.dawn.com/news/1510449/results-of-governments-difficult-decisions-now-showing-says-hafeez-sheikh