ISLAMABAD, Jan 4: Country’s economy has posted positive signs towards realizing the targets set under three-year medium term macroeconomic programme through stabilization policy and structural reforms programme during first half of the current fiscal 2001-2002 despite September 11 incident.

“Foreign remittances have surged by 84.5 per cent, foreign exchange reserves hovering around 5 billion—up by $2 billion and inflation at 2.7 per cent with visible indications of achieving targets of major crops during the first half of the current fiscal 2001-2002,” economic adviser, Dr Ashfaq Hasan Khan, said here on Friday.

In an exclusive chat with APP, Dr Ashfaq said, “foreign investment has registered 60 per cent increase in first five months of current fiscal year with foreign direct investment ascended by 58 per cent against the foreign investment in the like period of last fiscal.”

During July-Nov of 2001-2002, foreign investment was $161.6 million against investment of $102.4 million in the corresponding span of 2000-2001 with major chunk in the oil and gas and power sectors, he added.

Despite global economic slowdown, turbulent period after Sept 11 tragic incident and mounting tension between Pakistan and India, “Pakistan has maintained a modest and positive growth in industrial production.”

To a question, the economic adviser said, “we believe that by the end of medium term macroeconomic programme, Pakistan will regain its lost growth and macroeconomic stability at sustainable basis.

Major targets set under three-year macroeconomic programme are Gross Domestic Product (GDP) at 5.2 per cent, inflation below 5 per cent, fiscal deficit to be reduced to 3.2 per cent, current account deficit 1.3 per cent of GDP and Foreign Exchange Reserves above $ 4 billion with social sector spending getting top priority.

He said growth in industrial production is at around 4 per cent in the first four months of current fiscal. Inflation is around 2.7 per cent against 4.9 per cent last year in this span.

Gross revenue collection is 3.8 per cent higher in July-Nov this year while net collection tumbled by 4.3 per cent owing to 51 per cent increase in refunds.

Further elaborating, he said refunds were Rs17.77 billion or 23 per cent of Rs77.7 billion gross collection under sales tax against refunds of Rs10.8 billion or 16.3 per cent of gross collection of sales tax of Rs66.2 billion in the same period of last fiscal.

While under customs, refunds amounted to Rs12.9 billion or 43.6 per cent of the gross collection worth Rs29.5 billion in the first five months of current fiscal against refunds of Rs9.6 billion or 29 per cent of gross collection of Rs33 billion.

Despite slash in duties, he added, the government dished out over Rs10 billion more under refunds in sales tax and customs during July-Nov.

Exports have depicted 0.3 per cent increase in July-Nov at $3734.5 million against exports of $3723.5 million, which is due to disturbing scenario on international front, causing plummet in value terms of exports from 2-18 per cent.—APP