Govt approves $9.36bn oil import bill

Saturday, 06 June 2009 10:52

ISLAMABAD: The government has approved projection of the oil import bill to the tune of $9.365 billion in the upcoming budget for 2009-10 against revised estimates of $9.858 billion in the outgoing fiscal year 2008-09. According to a summary for Annual Plan 2009-10 approved by the National Economic Council (NEC), a copy of which is available with The News, the government had estimated an oil import bill of $13.669 billion on eve of budget 2008-09, which was scaled down in accordance

with revised estimates to the tune of $9.858 billion, owing to reduction in international prices of POL products.

Now the oil prices have started witnessing a surge in the international market, touching an average price of over $60 per barrel. But the government has projected oil import bill of $9.365 billion for 2009-10.

The Annual Plan 2009-10 envisaged GDP growth at 3.3 per cent, while inflation target is set at 9 per cent in the next budget. In real GDP growth of 3.3 per cent, the contribution of agriculture will be 3.8pc, manufacturing 1.8pc and services 3.9pc. GDP at the current market price would increase by 12.9 per cent as it would touch Rs14779 billion.

The target rate for CPI inflation is set at 9 per cent for 2009-10 against expected inflation of 20 per cent in 2008-09. “This projection has been made in view of the improvements in macroeconomic indicators and weakening international oil and commodity prices,” the summary states.

Total investment is projected to be around 20 per cent of the GDP in 2009-10. National Savings as a ratio to GDP is projected at 14.7 per cent, implying that almost 74 per cent of investment will be financed through national savings. This will leave 26 per cent of the investment to be financed from foreign savings, which will be 5.3 per cent of GDP.



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