The federal government presents the Economic Survey before the 2020-21 Budget. Finance Adviser Abdul Hafeez Sheikh said that in the last five years of the previous government, exports increased by zero percent. The previous government kept the dollar artificially cheap, due to which imports doubled with respect to exports.
According to the Economic Survey Report, Pakistan’s economy will shrink from 28 283 billion to 26 263.54 billion this fiscal year, with per capita income reaching 1358 dollars this fiscal year. The per capita income was 1516 dollars last year.
Abdul Hafeez Sheikh said that resources have been mobilized to deal with the situation of the pandemic. The expenditures have been drastically reduced. The deficit has been reduced by 73%. No loan has been taken from SBP for the whole year. We also returned Rs 5,000 billion in terms of past loans and will return Rs 3,000 billion next year.
Abdul Hafeez Sheikh said that the economic growth rate in the current financial year was negative 0.4 percent while the growth of the services sector was also negative. The growth of the industrial sector was negative 2.64 percent and the growth of the transport sector was negative 7.1 percent.
He further said that the growth of the agricultural sector was 2.67%, wheat was procured from farmers at a cost of Rs 280 billion. The relief was given to small businesses by the government in electricity bills for 3 months due to coronavirus. The budget was allocated for the agriculture sector and farmers were provided subsidy on fertilizers.
He said that Rs 50 billion has been allocated for utility stores so that the people can get basic necessities cheaply. Rs 30 billion has been allocated for providing houses to the low-income earners and the concessional package has also been given for the construction industry.