By IANS,
Islamabad : Pakistani Prime Minister Syed Yusuf Raza Gilani has that revival of the economy was the key concern of his government.
“We have earmarked Rs.730 billion for the Public Sector Development Programme (PSDP), including provincial allocations. This development expenditure will indeed trigger a multiplier effect on the entire economy,” Associated Press of Pakistan quoted Gilani as saying.
Addressing the special cabinet meeting to discuss and approve budgetary proposals for the year 2011-12, Gilani said there was no room for complacency.
He asked his economic team to pro-actively work in the coming year in core areas of power sector reform, revitalising of tax machinery to improve tax to GDP ratio, fast track development of hydel projects and better governance in the bleeding public sector corporations.
Gilani said Pakistan was entering into the new financial year after tremendous fiscal stress in the current financial year as the economy was devastated by unprecedented floods causing damages to the tune of Rs.800 billion as per independent estimates.
The prime minister said deteriorating security situation imposed further costs on the economy in the shape of increased security spending and re-settlement of Internally Displaced Persons, reported APP.
Gilani said the government was expecting to close a record year of exports and home remittances at $24 billion and $12 billion respectively. He said these two factors had cushioned the economy against high oil and commodities prices.