ISLAMABAD-Making an excuse of floods, security situation and soaring oil prices at international market, Federal Minister for Finance and Economic Affairs Abdul Hafeez Shaikh Thursday admitted that the government has failed to achieve major economic targets including GDP growths target during the outgoing financial year 2010-2011. This he said while launching the Economic Survey of Pakistan for the year 2010-11 here on Thursday. According to the pre-budget document, the government has approved Rs 730 billion Public Sector Development Programme (PSDP) for the year 2011-12. The federal component of the PSDP is Rs 300 billion, while the provincial component is Rs 420 billion. Rs 10 billion have been approved for the Earthquake Reconstruction and Rehabilitation Authority (ERRA). As per the survey, the GDP for year 2010-11 was fixed to grow at 4.5 percent, but due to several challenges including the devastating floods that hit the economy badly, the growth rate reduced to 2.4 percent. Addressing the news conference, Dr Abdul Hafeez said the devastating floods, increase in international oil prices and security situation were the three main factors that hit the countrys economy and subsequently resulted in slowdown in growth rate during the fiscal year 2010-11. We face challenges but this is the time when all political parties and civil society are determined to lead the country out of these crises, the Finance Minister said, adding that with joint efforts we would lead the country out of these crises. Despite all these challenges, the Minister said the several sectors of economy including exports and remittances showed considerable growth during the outgoing fiscal year. Hafeez said that the agriculture sector registered growth of 1.2 percent. However, he added that due to devastating floods major crops witnessed negative growth of 4 percent. The manufacturing sector also grew by 3 percent despite increase in oil and energy prices while the services sector witnessed positive growth of 4.1 percent. Owing to the law and order situation of the country, total investment declined from 22.5 per cent of GDP in 2006-07 to 13.4 per cent of the GDP in outgoing financial year 2010-11. Similarly, the fixed investment decreased to 11.8 per cent of GDP from 13.4 per cent last year. The minister said that the Federal Board of Revenue (FBR) set the revenue collection target at Rs 1588 billion during the current year, out of which the Board has already collected Rs 1316 billion. He said that the Board was confident that it would be able to collect the remaining Rs 272 billion by the end of June. During May 2011, the Board collected Rs 160 billion against Rs 110 billion collected during the same month of last year, showing an increase of Rs 50 billion. Hafeez Shaikh said that exports witnessed historic growth of 28 percent by increasing from $18.8 billion last year to $ 20.2 billion during July-April (2010-11). He said that the export figures are expected to cross the $24 billion figure this year. The remittances also witnessed a considerable growth during July-April (2010-11) by growing from $7.3 billion during the same period of last year to $9.1 billion. He said that the governments bank barrowings declined by Rs 16 billion during the current year as compared to last year. The Minister for Finance said that the overall economy was in very bad condition when the current government took the power in 2008. However, tough decision and the prudent policies helped in putting the economy on the path to stability. Several measures were taken by the government including cutting down its own expenditures, enhancing revenues and reducing the fiscal deficit to maintain economic stability, he added. He said a major setback to economy was done by the floods of 2010 that affected about 1.6 million families having 20 million members besides causing damages to infrastructure, agriculture and other properties worth $10 billion. He said security situation was also taking toll on economy as business activities in some areas have curtailed while the name of the country is also being defamed abroad that causes decline in investments. He said that the third major challenges that the economy faced during the outgoing fiscal year was the increase in international oil prices which have also affected the performance of the industrial and manufacturing sector. The Finance Minister said the government has taken several measures to make the situation better and highlighted the importance of becoming self-sufficient. He said that for becoming self-sufficient, the government has taken certain steps to broaden the tax base and bring into the tax net those who are not paying taxes. He said the government aims at collecting $623 million from wealthy taxpayers. Besides, several sectors including fertilizer, tractors, textile, carpet, leather and sports would be taxed to broaden the tax net, he added. He said that the fiscal deficit for the year 2010-11 was expected to remain 4 percent of GDP, however due to unfavourable circumstance, it grew to 5.1 percent. Besides, the Finance Minister said that the government has taken initiatives to involve the private sector more in the business as doing business was not the job of the government, adding that it was also making efforts to get access for the Pakistani products in the international market, particularly in the European Union. To a question about agricultural income tax, the Finance Minister said that the Prime Minister has already constituted a committee of federal as well as provincial members to make mechanism in this regard. He said that Pakistan has received $ 745 million as CSF while more are expected before June 30. The government has also failed to restrict inflation rate at 9.5 per cent as it remained 14.1 per cent during July-May period of 2010-2011. The Finance Minister was of the view that the government has control the inflation rate now. Pakistans per capita in real income has risen by 0.7 per cent during the outgoing fiscal year as against 2.9 per cent of the last year, while per capita in dollar term rose from $1073 last year to $1254 in 2010-11 registering an increase of 17 per cent. According to the survey, the national savings rate has decreased to 11.8 per cent of GDP in 2010-2011 as against 15.4 per cent of GDP last year and similarly the domestic savings have also declined substantially from 16.3 per cent of GDP in 2005-06 to 9.5 per cent of the GDP in 2010-11. The countrys population stood at 177.10 in 2011 and is the sixth most populous country of the world. In the energy sector, the total installed capacity of Pepco system is 20,681MW as on March 2011, against 20,190 MW over the same period last year. The average production of natural gas per day stood at 4050.84 million cubic feet during July-March 2010-11 as against 4,048.76 million cubic feet over the same period last year, showing an increase of 0.05 per cent. The Finance Minister was flanked by Secretary Finance, Dr Waqar Masood, Chairman Federal Board of Revenue, Salman Siddique, Deputy Chairman Planning Commission of Pakistan, Dr Nadeem-ul-Haq and other officials of the ministry.