Govt vows to end Rs 500bn circular debt in 60 days

Published June 11, 2013
The finance minister presented highlights from the Economic Survey of Pakistan for the year 2012-2013.—INP Photo
The finance minister presented highlights from the Economic Survey of Pakistan for the year 2012-2013.—INP Photo

ISLAMABAD: Finance Minister Ishaq Dar on Tuesday vowed to end Pakistan’s crippling circular debt worth over Rs 500 billion within 60 to 70 days.

The finance minister was presenting highlights from the Economic Survey of Pakistan for the year 2012-2013.

Pakistan suffers from a prevalent energy crisis, compounded by an acute shortage of liquidity in the cash-strapped power sector.

“We will try and end the circular debt as soon as possible,” said the finance minister.

“We have set the target for GDP growth rate at 4.4 per cent,” he said.

Real GDP growth for 2012-13 was estimated at 3.6 per cent compared to 4.4 per cent in the previous fiscal year 2012, according to the survey.

During the first nine months of 2012-13, fiscal deficit stood at 4.6 per cent, however Dar said that his government would curtail it through “strict financial discipline”.

The government had set a target of eight per cent for inflation in the next financial year, he added.

He said that the economy during the last five years grew on average at the rate of 2.9 per cent per year.

Dar went on to say that terrorism had also caused major damage to the economy, “however, we will bring the growth rate back up to seven per cent.”

He said that harsh decisions will need to made for the betterment of Pakistan’s economic conditions.

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