KARACHI, Jan 4: Giving out some latest data on the economy at the press briefing at the Karachi Stock Exchange on Saturday, Shaukat Aziz, adviser to the PM on finance and economic affairs disclosed that as of that morning, the revenue collection figures with the CBR had touched Rs200.5 billion, which had crossed the target of Rs 199.5 billion for the first six months of the year (July-December 2002).

“The collection numbers could rise as complete figures of direct taxes take a little while to come in,” he said and added that it was for the first time that the tax collection targets would not have to be revised downwards.

Shaukat Aziz observed that indirect taxes (duties and sales tax) had increased by an unprecedented 20 per cent. Painting more rosy picture of the economy, the adviser stated that GDP growth was heading towards 4.5 per cent in the current year: 2002-03 and that inflation rate right now was 3.6 per cent. He said that the foreign exchange reserves which were $4.9 billion a year ago, now stood at $9.3 billion, sufficient to finance 11 months of imports. Shaukat Aziz stated that the need now was to stay at the course, to get out of the debt trap and have the growth trajectory, i.e 5 per cent and above.

The adviser stated that despite a series of domestic and external shocks such as the unprecedented drought, the events of September 11, 2001 and the military build-up of India, Pakistan’s economy had made ‘commendable’ progress in the last three years. Shaukat Aziz unfolded a long list of claims about the robust health of the economy. He said that the economy was now more stable, economic policies were transparent and predictable; confidence of the private sector was restored; expatriate Pakistanis were bringing their capital back; stock market was buoyant; external balance of payments were in comfortable position; foreign exchange reserves had crossed $9.3 billion.

The adviser went on to state that the exchange rate was stable; inflation was low and interest rates were declining; domestic and external debt had decreased; fiscal deficit had been lowered and current account balance was in surplus; tax collection was growing; exports had picked up, governance had improved and corruption at the top levels in the government had been eliminated. “And lastly, Pakistan’s credit rating in international capital markets has improved,” Shaukat Aziz said, and added that those economic achievements owed heavily to sound economic policies, good governance, and deft economic management. “This fact is, by and large, accepted by stakeholders within and outside Pakistan,” the adviser stated.