Development and Special Initiatives briefed the cabinet regarding marked improvement in the country’s economic indicators

Minister for Planning, Development and Special Initiatives briefed the cabinet regarding marked improvement in the country’s economic indicators recorded during July-December period of the current fiscal year (2020-21).

The participants were told that the country’s exports, as compared to several previous years, witnessed increase during the last six months, whereas workers’ remittances also recorded an increase of US$ 2.8 billion.

With US$ 2 billion increase recorded in the country’s foreign exchange reserves as compared to last year, tax collection also registered 7.9 percent increase in the month of December alone, it was told.

The meeting was further told that the utilization of funds under PSDP also recorded 7.4 percent increase over the last year, which was a record first six months’ increase in the utilization of PSDP funds in eight years.

The cabinet was told that with revenue receipts surpassing expenditures, the country’s agriculture sector performed well as the production of rice, cane and maize recorded the growth of 10%, 13% and 9%, respectively.

With encouraging growth in manufacturing, Large Scale Manufacturing (LSM) sector, which recorded 7.4% increase this year, registered 14.5% growth in the month of December alone, a record increase in 12 years.

Regarding inflation, the cabinet was told that with around 11.1% inflation last year, the rate of inflation during first six months of the current fiscal was 8.6%. The rate of inflation in the month of December remained 6.4% and was expected to come further down during the coming months.

The participants were told that the exchange rate was stable whereas the country’s stock market was at the highest level after April 2018.