960403

Corrective measures

taking economy to

target growth: Shahab

ISLAMABAD: Macro economic indicators have started improving in a big way as country is poised to achieve six percent growth rate compared to three per cent of the Nawaz Sharif's period, Makhdoom Shahabuddin, Minister of State for finance said.

In an interview with Khaleej Times, the Minister said that Pakistan's economy recovered from serious setbacks of the past and six per cent growth rate during 1995-96 would be achieved in the wake of the corrective measures initiated by the government.

"last fiscal year ended with 5.5 percent GDP growth compared to just three per cent of Nawaz Sharif's three years", he said adding that ever since Prime Minister Benazir Bhutto took over, the economy was constantly showing signs of improvement.

Country's economy, he said was put on sound footing by taking tough and " unpopular decisions" by the government. Inflation had been brought down to nine percent against fourteen percent which, he stated, was amply appreciated by the Bretton Woods institutions.

International Monetary Fund, he said had in fact given clean bill of the health to the economy. That was why, he added the fund approved the second tranche of over $70 million out of $600 million standby loan negotiated in November last year.

The budget deficit, the minister said, had been considerably curtailed following the earnest efforts of the government for slashing the non-development expenditures.

Referring to export sector, Makhdoom Shahabuddin said that country's stagnant exports also started showing increase and the target set for this sector of $9.8 billion during 1995-96, he believed would be hopefully realised.

The Minister said that foreign investment of $450 million was attracted within last six months which he described as unprecedented.

Dollars one billion foreign investment was attracted during 1994-95, and it was likely to be over dollars two billion during the current fiscal year, he expressed.

Overall economic milieu, he said, started registering improvement and showing encouraging results and if we are given some time, we would change the destiny of the people by implementing revolutionary economic policies" he said.-APP