ISLAMABAD: Federal Minister for Petroleum and Natural Resources Musadik Malik claimed on Saturday that Pakistan’s rural economy had grown by 6.5 percent, while the overall national GDP growth was 2.5 percent in the outgoing fiscal year.

The minister, however, did not provide details on how the rural economy achieved such rapid growth. Typically, rural economies are primarily driven by crops and livestock, which are key indicators of their performance.

Regarding the rural GDP growth, Musadik Malik mentioned a 50 percent increase in tractor sales and a 17pc hike in fertilizer production, indicating increased credit to farmers. “By collecting all these indicators at one point, we can see an outline of stability in economy,” Malik said while addressing a news conference here.

The minister cited improvements in various macroeconomic indicators, including inflation, current account deficit and tax collections. Stability is returning to Pakistani economy, he said.

“We are gradually moving towards our targets of reducing poverty and inflation and creating more jobs,” Malik said. He claimed inflation has decreased from 37 to 17 percent, food inflation dropped from 40 to 11-12 percent, tax collections increased by 30 percent, and current account deficit improved from $4 billion to $200 million.

He said though exports have not significantly increased, imports have declined, which has stabilised the rupee. Over the past year, the rupee has appreciated by 5 to 6 rupees, he noted.

He said the upcoming budget will include incentives for small businesses, Information Technology Sector, Artificial Intelligence and machine learning. Additionally, the government is focusing on the agriculture sector, he added.

Regarding the collapse of 969MW Neelum-Jhelum Hydropower Plant for the second time in a year, Malik said an investigation is underway. He also mentioned ongoing discussions about dam construction, with allocations being made in the Public Sector Development Programme (PSDP) for projects like Tarbela Extension and Dasu Dam. Negotiations with the World Bank for $1 billion have been completed, with the funds almost received, he said

The minister said government is also planning strategic canal constructions with the provinces to support agriculture and protect against floods.

Talking about political stability, the minister emphasized its importance as the “bedrock” for Pakistan’s stability. He criticised the PTI for tarnishing the political landscape but credited the current government with saving the country from bankruptcy. Malik suggested, “In politics, the doors to reconciliation should always be kept open”.