Effective economic policies showing good results: PM

Prime Minister Syed Yusuf Raza Gilani Thursday said that due to prudent economic policies of the present government, number of targets in economic sector have been achieved during the first six months of the current fiscal.

Giving a policy statement in the National Assembly on the economic situation of country during the first six months, the Prime Minister said despite facing challenges of floods, rains and deteriorated law and order situation and world economic recession, the economic indicators of Pakistan improved during this period and inflation has been reduced to single digit.

Gilani said political stability is must to ensure economic stability and urged the media to play important role in this regard. The Prime Minister said although the government had inherited economy from the previous government in poor condition but the economic reforms by it have started showing results.

The Prime Minister said the government controlled borrowing during the first six months of this fiscal year that helped to reduce the inflation to single digit (9.7) first time in history of the country.

He said the expenditures are under control with only 45 percent utilization in this sector during first six months.

The Prime Minister said that fiscal deficit which was 9.4 percent has been reduced to 7.6 percent and the inflation that had reached 25 percent but has been reduced to 9.7 percent during December 2011.

Gilani said the government provided a number of incentives to farmers that improved the food supply situation in the country. It was made possible with the help of less budget deficit and reducing the loans from State Bank of Pakistan.

He said the prices of essential items were reduced in the open market the food inflation which was 20 percent in last year, remained in single digit during the first six months of the current fiscal year.