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.

Opinion

Editorial

Revised solar policy
Updated 15 Mar, 2025

Revised solar policy

Criticism policy revisions misplaced as these will increase payback periods for consumers with oversized solar systems.
Toxic prejudice
15 Mar, 2025

Toxic prejudice

WITH far-right movements on the march across the world, it is no surprise that anti-Muslim bias is witnessing high...
Children in jails
15 Mar, 2025

Children in jails

PAKISTAN’S children in prison have often been treated like adult criminals. The Sindh government’s programme to...
Cohesive response
Updated 14 Mar, 2025

Cohesive response

Solely militarised response has failed to deliver, counterterrorism efforts must be complemented by political outreach in Balochistan.
Agriculture tax
14 Mar, 2025

Agriculture tax

THE changes in the provincial agriculture income tax laws aimed at aligning their rates with the federal corporate...
Closing the gap
14 Mar, 2025

Closing the gap

PAKISTAN continues to struggle with gender inequality in its labour market. A new report by the ILO shows just how...