ISLAMABAD - Giving the policy statement on the completion of first half of the current financial year, Prime Minister Syed Yousuf Raza Gilani said in the National Assembly on Thursday said that the economic indicators of the country were improving and the inflation has been reduced to single digit.

"The half of the current financial year has been completed and it is a time to take the House into confidence on the current economic situation. The economy condition of the country has been the centre of the incumbent government's attention. To notice our economic condition we will have to keep in mind the economic conditions of the whole world. Recession damaged the world however our economy has shown stability," Premium Gilani said.

He added that the government inherited a shambled national economy while they in addition to other problems also have to face the flood of 2010, the rains in 2011, economic recession in the world and poor law and order situation in the country.

The Prime Minister said that the government controlled borrowing during the first six months of this fiscal year that helped in reducing the inflation to single digit and in December 2011 the inflation, which was 25 per cent has reduced to 9.7 per cent.

He said that the expenditures were under control with only 45 per cent utilization in this sector during the first six months of the current year. The Prime Minister said that the fiscal deficit, which was 9.4 per cent, has been reduced to 7.6 per cent. Gilani added that the government provided a number of incentives to farmers that reduced the prices of food items and other necessary things.

He said that due to the prudent economic policies of the present government, number of targets in economic sector have been achieved during the first six months of the current fiscal. Talking about the tax recovery Premium Gilani said that the Government finished the tax immunity and took various measures, which led to increase the tax collection. He added that as compare to 2010, 27 per cent increase was made in tax collection. We are satisfied with this performance and the government will achieve its target, the Prime Minister added.

He said that the 9.1 per cent increase was ensured in exports that were 28 per cent more than in the past. There is no IMF programme in the country right now and the government would return 1.4 billion dollars loan during the current year.

The Prime Minister further informed the House that out of total 50 billion rupees of BISP, Rs.25 billion have been distributed among the people of the country. "The government under the head of NFC gave Rs.1000 billion to the provinces during 2010-11 and they have an estimate of Rs.1200 billion for the provinces. The government under 18th amendment devolved 17 ministries to the provinces while the extra fund of Rs 54 billion is also being given to the provinces. The government has also given the guarantee to Balochistan government for providing Rs 93 billion for the province", the Prime Minister told.       

Talking about the energy crisis, he said that more than 3000MW were added to the national grid while 5000MW would also be added in next three to four years. He said that it was the wrong impression that the Government was running the affairs with borrowing. " Make sure that the economy of the country is in the strong hands--- political stability is must to ensure economic stability--- media should play   important role in this regard", he said while added that the Government was working to meet the crises of gas and energy.

Meanwhile responding to a calling attention notice regarding increase of Palm Oil prices, the Parliamentary secretary informed the House that 680000 ton Palm oil was available in the country and the recent price increase was artificial as palm oil factories did not raise the prices. He said that the Ministry was going to write provinces to control the prices in the market.

During the session MNA Naseer Bhutta of PML-N also staged token walk out against the check posts being established during the Prime Ministers' appearance in the Supreme Court. He said that the whole capital was blocked due to these check posts.  Earlier, the House unanimously passed the National Commission for Women Bill, 2011. After the passage of the bill, Speaker National Assembly Dr Fehmida Mirza prorogued the session.