News Paper: Business Recorder
ISLAMABAD (July 23 2010): The Ministry of Finance on Thursday informed the government that low domestic savings and high debt stock have been constraining the medium-term investment, sources told Business Recorder. Sources said Finance Minister Dr Abdul Hafeez Sheikh informed Prime Minister Syed Yousuf Raza Gilani that without domestic resource investment would not take off and consequently shun the prospects of growth.
This will increase the vulnerability of economy to shocks, he said, adding that growth outlook would depend on resource mobilisation and expenditure management. The Prime Minister was also apprised that global commodity prices, adjustment in energy prices, steep increase in wheat support price and government borrowing for budgetary support are major factors causing inflationary pressure.
The Prime Minister held a meeting with the Finance Minister to discuss overall economic situation ahead of chairing a high level meeting on rehabilitation of people affected by Hunza Lake. The Prime Minister said the focus of economic management should be on protecting the economic recovery, checking rise in prices and ensuring that benefits of better economic management are delivered to the citizens across the board.
Gilani stressed the need for focusing on completion of on-going projects instead of spending funds on too many schemes, which do not have maximum impact in terms of common man weal. He reiterated that the Ministry of Finance should act as a role model for other ministries and provincial governments in austerity drive.
The Finance Minister briefed the Prime Minister on the progress made in pursuing the budgetary targets, efforts for revenue mobilisation, fiscal austerity measures and rationalisation of government public sector development programme. The Finance Minister is said to have briefed the Prime Minister about talks he recently held with the International Monetary Fund (IMF) for review of Pakistan economy for release of next tranche by the Fund
-www.brecorder.com
This will increase the vulnerability of economy to shocks, he said, adding that growth outlook would depend on resource mobilisation and expenditure management. The Prime Minister was also apprised that global commodity prices, adjustment in energy prices, steep increase in wheat support price and government borrowing for budgetary support are major factors causing inflationary pressure.
The Prime Minister held a meeting with the Finance Minister to discuss overall economic situation ahead of chairing a high level meeting on rehabilitation of people affected by Hunza Lake. The Prime Minister said the focus of economic management should be on protecting the economic recovery, checking rise in prices and ensuring that benefits of better economic management are delivered to the citizens across the board.
Gilani stressed the need for focusing on completion of on-going projects instead of spending funds on too many schemes, which do not have maximum impact in terms of common man weal. He reiterated that the Ministry of Finance should act as a role model for other ministries and provincial governments in austerity drive.
The Finance Minister briefed the Prime Minister on the progress made in pursuing the budgetary targets, efforts for revenue mobilisation, fiscal austerity measures and rationalisation of government public sector development programme. The Finance Minister is said to have briefed the Prime Minister about talks he recently held with the International Monetary Fund (IMF) for review of Pakistan economy for release of next tranche by the Fund
-www.brecorder.com
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