All targets missed


ISLAMABAD - Missing almost every target of the national economy, declared Finance Minister Syed Naveed Qamar Tuesday the outgoing fiscal year as the worst year economically but vowed to bring back the stability from the next year 2008-09.
Neither sharing the responsibility nor willing to make the economic team of former Prime Minister Shaukat Aziz accountable on a short-run plan, Finance Minister, accompanied by the same team of economic managers at the launching ceremony of Economic Survey 2007-08, said they would look at the future and not to start mudslinging on their forerunners.

The overall economic growth (Gross Domestic Product) is estimated at 5.8 percent, agriculture 1.5 percent, manufacturing 5.4 percent, large-scale manufacturing 4.8 percent, services sector 8.2 percent, investment to GDP ratio fell from 22.9 to 21.6 percent, inflation 10.3 percent, fiscal deficit at 7 percent, public debt burden as it stood was recorded at 53.5 percent, current account deficit was 6.9 percent, external debt liability (EDL) surged to $ 45.9 billion from $ 40.5 billion, an increase of $ 5.4 billion (13.3 percent) over last year, which is considered the highest rise in the last decade. However, the Survey, did not mention tax-to-GDP ratio in terms of percentage. It states, Rs 1000 billion of tax revenue will be achieved against the Rs 1025 billion target.

The Survey reported the per capita income has increased from last year's $ 925 to $ 1085, reflecting an increase of 18.4 percent. However, the Minister was repeatedly asked to give the exact figure of poverty in the country but his reply after consulting the economic team was, "We don't believe in figure."

To a question, the Minister said they would carry out the survey in the next fiscal, starting from July 01, to ascertain the actual poverty situation in the country. Poverty is around 22.9 percent as based on the existing Survey.
He, however, categorically stated that the government had altogether changed the procedure of accountability carried out by the previous government under National Accountability Bureau (NAB). "We will follow the constitutional mechanism to carry out accountability and for this purpose, we have the audit system and the Public Accounts Committee System to try the predecessors, if found involved in mismanagement or any figures game," the soft-spoken Minister cautioned.

Former State Minister and Advisor to Prime Minister on Finance and Economic Affairs Hina Rabbani Khar, Secretary Finance Farukh Qayyum, Chairman Federal Board of Revenue (FBR) Abdullah Yousaf, Special Secretary Ministry of Finance Dr Ashfaque Hasan Khan and Press Information Officer (PIO) Ghulam Hazoor Bajwa were also present at the launching ceremony of the Survey.
Presenting the summary of the Survey, Naveed Qamar comments, "We are sitting at the end of the dismal picture of economy."

The economic growth is estimated at 5.8 percent falling short of even the revised target of 6.5 percent, budgetary target of 7.2 percent and last year's target of 6.8 percent during the fiscal year ending by June 30.
Agriculture sector, the major growth contributor, also showed poor performance with a nominal growth of 1.5 percent against the target of 4.8 percent and last year 3.7 percent. The sluggish trend in agriculture sector is attributed to the negative growth of 3 percent in the major crops. However, livestock exhibited some improvement in growth from last year's 2.8 percent to 3.8 percent this outgoing year 2007-08, stated the Economic Survey.

Manufacturing sector, another important growth oriented sector, recorded a modest growth of 5.4 percent against 8.2 percent last year. Its contribution to this year's growth also declined from 22 percent to last year's 17.2 percent this year. Large-Scale Manufacturing, making around 70 percent of overall manufacturing, registered a growth of 4.8 percent in 2007-08 against the target of 12.5 percent and last year's achievement of 8.6 percent. The architects of this Survey attributed poor law and order situation, political developments and power shortage as the reasons behind this sluggish growth.

Service Sector, the only well performing sector, continued to maintain a solid pace of expansion at 8.2 percent as against 7.6 percent last year. Over three-fourth (75 %) contribution to this year's growth came alone from services sector. Therefore, this year's growth is services sector-led-growth.
About the monetary policy, the Minister said the State Bank of Pakistan has continued with the tight policy stance in 2007-08, thrice raising the discount rate and increased the Cash Reserve Requirement (CRR) and Statutory Liquidity Requirement (SLR).


The fiscal policy reflects the overall fiscal deficit as estimated at Rs 737.8 billion or 7 percent of GDP for 2007-08 as against the target of Rs 399 billion or 4 percent of GDP. Some shortfall in revenue and massive slippages in expenditure side on account of interest payments and subsidies are responsible for the rise in the fiscal deficit.

Looks like Dar did good ...

yea thats how u do it in just 2 months....
all was good untill thrid quater of FY... then democracy came

Next year they won't even be targets to miss.

Is there anyway Dar can be prosecuted for his absolutely dismal performance?

Yeah, lets put him and Shaukat Aziz in a room and give Aziz a wooden board with a nail on it's end.