Pakistan's economy has improved compared to last year, Finance Minister Ishaq Dar said in a Monday presentation on Pakistan's 'economic progress' during the first quarter of fiscal year 2017-18.

"Revenue collection targets have been met [in the first quarter]," he insisted, noting that revenue collection stood at Rs765 billion in the July-September period — some 20 per cent higher than the same period last year.

The assurance came on the heels of a much-discussed statement from the army chief, in which he had fretted over Pakistan's abysmal record in tax collection.

The government has been able to reduce the overall budget deficit to Rs324bn compared to Rs438bn in the first quarter of fiscal 2016-17, Dar said. Therefore, "the overall fiscal deficit in percentage terms is 0.9pc compared to 1.3pc in the first quarter last year," Dar added.

Transfers to the provinces from the federal government have also experienced an increase, with Rs570bn transferred in the first quarter this year as compared to Rs416bn last year, Dar revealed.

He also claimed that current expenditures have been managed and controlled with Rs894bn spent in the first quarter this year, compared to Rs914bn spent last year, despite an increase in revenue this time around.

"The government's resolve and focus continue to be higher growth. Only that will reduce poverty, generate further resources and improve the economy and security since the two are intertwined." Dar said. "We are trying to not lose our target of 6pc growth."

He also assured that inflation is under control and the interest rates and export refinance rates are at their lowest.

"The results of last year's export package which provided sales tax relief as well as cash incentives have begun to arrive," Dar said, adding that exports have experienced 10.8pc growth in the first quarter of the current fiscal year.

Exports have risen to $5.17bn compared to $4.66bn last year, he claimed; but imports have also increased to $14.26 from $11.67bn in the same period last year.

"This has been a challenge and we have taken steps to increase exports and reduce imports," Dar said. "Imports of capital goods and machinery are adding up, which is good for the country in the long run," he said.

He also claimed that the decline in remittances to Pakistan has come to a halt, with repatriated funds increasing slightly to $4.79bn compared to $4.74bn last year.

According to data available until the end of August, Foreign Direct Investments (FDI) stood at $474m this year, experiencing an over 150pc increase from the $179m in July-August last year.

The current account deficit has also improved slightly, Dar claimed, based on figures from July and August.

"There is some confusion as if things have been on the decline in the past four years," Dar said, adding that the "facts will speak" otherwise.

GDP growth has hit 5.3pc which is a 10-year high, he said, while inflation has also been contained at 4.2pc. Per capita income has increased from $1,334 to $1,629 in the last four years while remittances have have also increased.

He reiterated that despite the improvements, the current account deficit has increased because of falling exports and increasing imports.

He reminded the audience that people were predicting in 2013 that Pakistan will default but State Bank reserves have since increased to almost $14bn.

Net domestic debt was 61.6pc of the GDP in June but external debt has reduced from 21.4pc in 2013 to 20.6pc at present, he revealed. He said that absolute numbers could be misleading and should be looked at in comparison with the size of the economy.

He said that the circular debt currently stands at Rs390bn despite a reduction in the hours of loadshedding, whereas it stood at Rs480bn when the PML-N took power.