Tuesday, 11 September 2012 22:29:05
Macroeconomic activity improves in 2011-12: PRSP Report
ISLAMABAD, Sept 11 (APP): The half yearly data of fiscal year
2011-12 depicts an improvement in overall macroeconomic activity, particularly in agriculture and service sector, according to the
Poverty Reduction Strategy Paper (PRSP) Midyear Progress Report.
The 27th PRSP Midyear Progress Report was released by the
Ministry of Finance that monitors pro-poor budgetary and non-budgetary
According to the report stable weather conditions have resulted
in a better yield of rice and cotton crops while services sector has also registered an increase due to growth in trade and profitability of
The risks to macroeconomic activity during the first half of
FY2011-12 mainly stemmed from the external sector and fiscal imbalances,
it said adding the Budget deficit was limited to 2.5 percent of GDP
during H1- FY 2011-12 - lower than the 2.7 percent deficit registered
in H1-FY 2010-11.
Nevertheless, strict fiscal discipline is required to achieve the targeted deficit during the latter half of FY 2011-12, it added.
The Pro-poor expenditures substantially increased till the second quarter of FY 2011-12.
Overall Year on Year (YoY) increase of 90.46 percent was recorded, from Rs. 482,815 million in H1-FY 2010/11 to Rs. 919,564 in H1-FY 2011/12.
Significant increases in expenditure have been observed in all the sectors including Market Access and Community Services, Human Development, Rural Development and Governance.
The maximum YoY increase was witnessed in Peoples' Works Programme
II. There was reduction in expenditures in Benazir Income Support Program (BISP), Pakistan Bait-ul-Mal (PBM) and Natural Calamities and Disasters.
The remarkable growths in Subsidies however lead to an overall positive growth in Social Safety Nets while on the provincial level, all
the provinces depicted an increase in PRSP expenditures, except Sindh
owing to decrease in education expenditures.
The composition of expenditures changed during the period under
review while the percentage share of development expenditures increased
by 3.03 percentage points during the first half of FY2011-12 against the same period in FY2010/11.
The expenditures in Education sector showed a minor growth as
compared to previous trends, it said adding this obviously is a matter
of concern since the education expenditures are already limited. However, the Health sector expenditures increased substantially.
Overall transfers for protecting the poor and vulnerable registered
a negative growth of 13.7 percent in grants and 21.4 percent in beneficiaries during H1 of FY 2011/12 when compared with the same period last year.
During H1 of FY2011/12, Rs. 24.96 billion (78 percent) of the grants were of the budgetary mode and Rs 6.84 billion (22 percent) were of the non-budgetary mode against 86 percent and 14 percent respectively during
the same period of PFY.
During H1 of FY 2011/12 a large proportion of the amount, i.e. 52
percent was disbursed through BISP, followed by 23 percent through Social
Security and Social Welfare, 17 percent through EOBI, 5 percent through
WWF, and 4 percent through PBM.
These disbursements were made to 4.51 million beneficiaries which
is 21 percent less than the beneficiaries of the same period last year. During H1 of FY 2011/12 a total of Rs.12.85 billion i.e. 608,080 loans
under the micro-credit were disbursed which was 32 percent more against
Rs. 9.71 billion i.e. 581,352
loans during the same period last year.
This Mid Year Progress Report covers the status of the poverty reduction efforts during H1 of FY 2011/12 (July - December).
Part one of the report gives a brief introduction of PRSP. Part two focuses on an overview of Pakistan's economy along with a brief
discussion on key macroeconomic indicators.
Part three gives an analysis of the budgetary expenditures of 17 pro-poor sectors in general and education and health sectors in particular.
Part four highlights both budgetary and non-budgetary modes of providing social protection to the poor and vulnerable and also
illustrates expenditure details of the nonbudgetary programmes.
Part five briefly discusses monitoring of PRSP output (intermediate)