Govt targets 20% rise in real per capita income in 5 years

[LahoreEstate]

By Ijaz Kakakhel

ISLAMABAD: The government set a target of 20 percent increase in real per capita income in next five years that will base on an average Gross Domestic Product (GDP) growth rate of 6 percent, official document with Daily Times revealed.

To achieve the increase in real per capita income, the government also set population growth rate at 1.8 percent in the specified period. More efforts would be required to further increase real per capita income to 25 percent with average growth of GDP of 6.5 percent to 7 percent during Tenth 5-year plan (2010-2015).

According to the Economic Survey 2008-09, Pakistan’s per capita real income had risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent.

For the purpose, the government has to bring down inflation rates in single digits during the Tenth Plan Period along with overcoming energy shortfall and significant improvement in the condition and outreach of physical infrastructure across the country.

The government also planned to improve Pakistan’s standing in international comparison of the cost of doing business and business environment for private and foreign investors.

A significant improvement in delivery, cost effectiveness and quality of output of public sector investment programme through adoption of new development vehicles, Public-Private Partnership (PPP) and active involvement of the private sector and civil society in formulation, management and delivery.

Set up measurable targets and performance indicators that would allow monitoring of improvement in governance and delivery of good quality basic services, timely justice, enforcement of contracts and assistance to ordinary people in overcoming problems they face in everyday life, the document revealed.

A sharp increase in growth, development and job creation in Balochistan and FATA, the revitalisation of growth in NWFP and targeted growth of less developed districts in Punjab and Sindh (together termed as Nation Building Regions).

A well-targeted, comprehensive and dynamic social protection system in place for the needy and vulnerable which also helped build their assets and skills to exit out of poverty, the Five-year plan revealed. Meeting the Millennium Development Goals (MDGs) by 2015 by increasing resources and supporting policies for achieving target where Pakistan was falling behind.

Sharp decline in poverty to move as close as possible to the MDG target of 13 percent of population living below the poverty line by 2015. Decent and good quality employment generated with unemployment reduced to 3.5 percent– 4 percent by 2015 and real wages increased significantly.

The document revealed a favorable business environment would be created to encourage foreign investment in new areas to supplement domestic development efforts and acquire latest technology.

To meet the resource gap and overcome foreign exchange availability constraint, donor assistance from multilateral and bilateral sources would be sought but it must be ensured that this was used efficiently in line with Tenth Plan (2010-15) priorities. It should not crowd-out domestic resource mobilisation effort or used, as a cushion to postpone needed structural reforms.

To ensure long-term stability and sustainability of the economy, effort would be made to keep the foreign and domestic debt within manageable levels. The limits set by the Fiscal Responsibility and Debt Limitations Act 2005 would be adhered, it revealed.

http://www.dailytimes.com.pk/default.asp...009_pg5_18