Federal Cabinet approves budget, taxation proposals

ISLAMABAD: Prime Minister Nawaz Sharif Monday said the effective economic policies of the government were coming to fruition with all the economic indicators showing positive trend including growth rate, inflation, fiscal deficit and tax receipts. "After three years, our policies are bearing fruits. Investors' confidence was boosting. All economic indicators are showing positive trends. The economic growth rate is eight year high. Inflation has downed below three percent. Fiscal deficit is below 4.3 percent. Tax receipts have shown an exemplary surge of 56 percent comparing those of fiscal 2013," the prime minister remarked while addressing the meeting of the federal cabinet through video link from London. The cabinet meeting, presided over by prime minister, considered and approved the budget and taxation proposals for the fiscal 2016-17. The prime minister, who is in London for medical treatment and would undergo heart surgery on Tuesday, said that the foreign exchange reserves had increased from US$ 7.8 billion in February 2014 to present US$ 21.6 billion. He said the government had prepared its fourth budget which, on one side indicated continuity of economic policies while on the other reflected the continuous progress and prosperity of the people. The government has inherited fragile and instable economy with high fiscal deficit, low investment and energy crisis that had destroyed the industrial sector besides afflicting psychological impact on the masses. But, he said the government was not perplexed by these issues, rather it formulated comprehensive policies and pursued those with responsibility, commitment and honesty. He apprised the cabinet members that he was faced with some health issues and after examination, the doctors had scheduled surgery for Tuesday. Thanking the nation, the prime minister said their prayers were the biggest asset for him. He said their prayers helped him pass through some critical and difficult times. He also thanked the elders, mothers, brothers, sisters and youngsters who showed their sincere emotions and wished him early recovery. He was also grateful to the leadership of the political parties for extending good wishes. The prime minister was equally thankful to the party workers and media who followed moral and religious values and prayed for his recovery. "It is my faith that such prayers of sincerity and love would be accepted," he remarked. –APP