ISLAMABAD -- Ministry of Finance has said that the government's macroeconomic adjustment and demand management policies for stabilization have started making an impact as visible in the moderate growth of 3.3 % in the FY2019.
As well as introduction of a host of measures to bring down inflation, jack up economic activities, strengthening of social security net, increase in employment opportunities and containment of fiscal and trade deficits, said a statement issued by Ministry of Finance here on Monday.
The result of what has been achieved so far needs to be seen and contextualised in the backdrop of a very difficult situation of the economy inherited by the government and how the measures taken by the government during the last one year have not only effectively checked the economic slide but turn the wheel in various sectors of the economy to ensure their long-term fruits for businesses and the common man.
In a detailed statement, the Finance Division has rejected the news reports published on the basis of a news article in an online international newspaper and claiming that the 'Voters, traders feeling pain of the government's economic plan' due to what the report suggests as rising inflation and other reasons.
The Finance Division has maintained that at the very outset, it is important to mention that when the present government assumed the office, the economy was facing multiple challenges relating to fiscal, external and real sector of the economy.
The unaddressed macroeconomic imbalances and long awaited structural reforms needed urgent policy actions.
To address these issues, the present government thus introduced a comprehensive set of economic and structural reforms and the impact of macroeconomic adjustment and demand management policies for stabilization were now visible as FY2019 witnessed moderate growth of 3.3 percent.
The Finance Division pointed out that the media reports while referring to increase in prices did not take into consideration the major causes behind this rise and instead stated the figures whereas major reasons for the rise in inflation are sustained pressures on twin deficits which induced the government to adjust administered prices upwards and also impose regulatory duties on imported items,supply constraints of certain food items and imposition of FED on cigarettes and the impact of rise in fuel prices and exchange rate depreciations.
The Finance Division has further stated that the rise in inflation was...