Published On: Thu, Dec 19th, 2013
Published in Category: Islamabad

Govt saves Rs 135b by cutting expenditures: Dar

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ISLAMABAD: Finance Minister Ishaq Dar said that the present government has saved 135 billion rupees by curtailing expenditures.

In a statement in Senate on Wednesday‚ he said fiscal deficit has been brought down from 8.8 to 8.2 percent.

The Finance Minister said that the government has paid 503 billion rupees of circular debt.

Giving details about payment of the circular debt‚ he said 348 billion rupees were paid in the first phase.

He said the remaining 138 billion rupees were paid in July by recovering government loans from different organizations.

Ishaq Dar said the country was also paying 14 percent interest on the circular debt and by retiring the debt‚ we would be saving 55 billion rupees annually just on account of interest.

He said the retiring of circular debt also enabled addition of 1700 megawatt of electricity to the national grid and as a result the industrial growth surged to seven percent in the first quarter of the current financial year.

The Minister said budget deficit came down from 2.9 percent to 2.2 percent due to tight management‚ stock market increased by 27 percent‚ remittances by overseas Pakistanis went up by seven percent and Pakistan’s market capitalization went up by 22 percent.