Issue 48

Budget Study Centre   Issue 48
Sep 05, 2019


Fortnightly Budget News Alerts

IMF deal could be renegotiated

Express Tribune (Sep 05, 2019)

ISLAMABAD: The government on Wednesday did not rule out the possibility of renegotiating the $6 billion International Monetary Fund (IMF) deal amid an admission by the tax authorities, for the first time, that they may collect between Rs4.8 trillion to Rs5.2 trillion in taxes in light of existing economic realities. The questions about renegotiating the IMF deal started surfacing after the IMF and the… Read More

Govt rules out any mini-budget in near future

Dawn (Sep 05, 2019)

ISLAMABAD: Amid criticism from both government and opposition members of the National Assembly over price hike and other monetary and fiscal policies, the government on Wednesday ruled out any mini-budget in the near future, saying the improvement in revenue collection would be made through technological and administrative measures. This was the crux of a meeting of the National… Read More

Govt borrowed only Rs3.44 trillion to finance budget deficit: ministry

The News (Sep 04, 2019)

ISLAMABAD: The Ministry of Finance on Tuesday explained that total debt and liabilities increased by Rs10.33 trillion in the last fiscal year, however, the government has just borrowed Rs3.44 trillion to finance its budget deficit. In a statement issued here on Tuesday night, the Finance Ministry stated that the government has borrowed only Rs3.44 trillion to finance its budget deficit during FY 2018-19… Read More

August inflation accelerates to 10.49pc

Pakistan Today (Sep 03, 2019)

ISLAMABAD: The Consumer Price Index (CPI)-based monthly inflation grew by 10.49pc in August 2019, as compared to the same month of last year. On a month-on-month basis, the CPI national (with base year 2015-16) for the month of August 2019 increased by 1.64pc over July 2019, Member Pakistan Bureau of Statistics (PBS) National Accounts member Dr Bahrawar Jan told the media at a press… Read More

Business reforms imperative to boost industrial growth: Dawood

Pakistan Today (Sep 03, 2019)

ISLAMABAD: By introducing business reforms in the country, the government intends to boost its industrial and commercial potential, said Adviser to Prime Minister on Commerce Abdul Razak Dawood, adding that the government remains committed to increasing the volume of exports through tariff rationalisation, improving the inflow of trade-related investment and introducing… Read More

Economy in red zone, govt should step down: PML-N

The News (Sep 03, 2019)

ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) on Monday that the country’s economy is in red zone and the government should resign it is unable to run the country. While criticising government’s Kashmir policy, PML-N has decided to requisition an emergency session of the National Assembly to discuss the vital issue in the House. Addressing a press conference… Read More

Yuan’s fall may increase Pakistan’s trade deficit with China

Express Tribune (Sep 02, 2019)

ISLAMABAD: The recent currency devaluation by China, which has brought the yuan-dollar parity to the lowest level since 2008, as part of its efforts to offset the impact of its tariff war with the United States, doesn’t augur well for Pakistan. The yuan’s sharp devaluation means that, all else equal, Pakistan’s exports to China will become less competitive, while imports from China will become… Read More

Sindh’s economy – challenges and solutions

Express Tribune (Sep 02, 2019)

NORTHAMPTON: The field of microeconomic analysis within the broader domain of economics attempts to explain the behaviour of individuals and organisations in a given economy. Taking the same philosophy and projecting it on a country level, regional studies explain the underlying economic and social trends of regions under the wider national fabric. A recent… Read More

High interest rate restricts private-sector borrowing

Express Tribune (Sep 01, 2019)

LAHORE: The All Pakistan Business Forum (APBF) has urged the State Bank of Pakistan (SBP) to review its policies and facilitate the private sector because credit offtake fell to Rs607.5 billion in fiscal year 2018-19 against Rs618.2 billion in the previous fiscal year owing to interest rate hike. The key interest rate has been increased from 6.5% to 13.25% in just one year… Read More

High interest rate restricts private-sector borrowing

Express Tribune (Sep 01, 2019)

LAHORE: The All Pakistan Business Forum (APBF) has urged the State Bank of Pakistan (SBP) to review its policies and facilitate the private sector because credit offtake fell to Rs607.5 billion in fiscal year 2018-19 against Rs618.2 billion in the previous fiscal year owing to interest rate hike. The key interest rate has been increased from 6.5% to 13.25% in just one year… Read More

FATF sets new targets for Pakistan

The Pakistan Today (Aug 31, 2019)

The Financial Action Task Force (FATF) has set new targets for Pakistan in which terror financing, as well as the sale of jewellery and prize bonds, would be monitored. As reported by a private media outlet, the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), Federal Investigation Agency (FIA) and National Counter Terrorism… Read More

Economy now capable of absorbing shocks: SBP chief

The Express Tribune (Aug 31, 2019)

KARACHI : Pakistan has achieved the most crucial milestone of economic stability. Improvement in foreign currency reserves, achieved through structural reforms under the International Monetary Fund’s (IMF) loan programme, has helped create a buffer for absorbing internal and external financial shocks, says the central bank chief. “The State Bank’s policy and our outlook …Read More

FBR to witness another month of alarming shortfall in revenue

Pakistan Today (Aug 30, 2019)

ISLAMABAD: The Federal Board of Revenue (FBR) is going to witness another month of major shortfall, as the board only managed to collect around Rs241 billion so far in August 2019, against the monthly target of Rs357.3 billion. Keeping in view the track record of revenue collection in the first 29 days of August, the FBR may collect around Rs260 billion by the end of the month, a shortfall of around Rs97… Read More

Record budget deficit shows PM’s failure: PPP

The News (Aug 30, 2019)

ISLAMABAD: The Pakistan People’s Party (PPP) Thursday said that the record budget deficit shows the inability of the prime minister and his team to run the country. How this selected government will overcome the budget deficit of Rs3000 billion,” asked Secretary Information PPP Parliamentarians Dr Nafeesa Shah while reacting to the finance report by Ministry of Finance. Dr … Read More

Revised macroeconomic data

The Business Recorder (Aug 29, 2019)

Consolidated Budgetary Operation (CBO) statement for 2018-19 released by the Ministry of Finance is extremely disturbing as macroeconomic data (finalised) is markedly divergent from what was presented in the budget documents for the current fiscal year – data that was critical to enabling the Pakistan economic team led by Dr Hafeez Sheikh, Advisor to the… Read More

Provinces help in keeping budget deficit below 9pc of GDP

The News (Aug 29, 2019)

ISLAMABAD: Pakistan’s budget deficit would have definitely crossed 9 percent of Gross Domestic Product (GDP) in the fiscal year 2018-19 if the provinces had failed to generate revenue surplus of Rs138.87 billion. With highest ever budget deficit of Rs3,444 billion or 8.9 percent of GDP under first year rule of PTI, Pakistan’s primary deficit also climbed to 3.6 percent of GDP for… Read More

The ballooning deficit

Pakistan Today (Aug 28, 2019)

The 2018-2019 budget deficit was out of control. The figures are almost too wild to be true, but since they are contained in the Finance Ministry’s own Budget Operations Statement, they have to be believed. Not only was the budget deficit for 2018-2018 the highest on record, but in terms of percentage of the GDP, at 8.9 percent the highest in at least 40 years. This has happened even though development spending was… Read More

Pakistan’s budget deficit widens to 8.9% of GDP in 2018/19

Reuters (Aug 27, 2019)

ISLAMABAD (Reuters) – Pakistan’s budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country. The deficit size compared with a 7.1% estimate Prime Minister Imran Khan’s government gave in June and with 6.6% during the year that ended in June 2018… Read More

PTI govt books highest-ever budget deficit of Rs3.45tr

Express Tribune (Aug 27, 2019)

ISLAMABAD: In the first year of Pakistan Tehreek-e-Insaf (PTI) government, public finances deteriorated further with budget deficit rising to a record Rs3.45 trillion or 8.9% of the size of national economy because of its sheer failure to enhance revenues and control expenditures. Official figures released by the Ministry of Finance on Tuesday confirmed that the PTI government exceeded its budget deficit… Read More

Textile industry on the edge

Express Tribune (Aug 26, 2019)

ISLAMABAD: Prime Minister Imran Khan’s visit to the White House late last month had been the focal point for all the print, electronic and social media. However, unlike meetings held in tenures of previous governments, this one was not about financial aid, fighter jets, weapons or any other form of financial assistance, rather it brought good news and provided some relief at a time when economic… Read More

A wicked trade-off between development and reforms

Express Tribune (Aug 26, 2019)

ISLAMABAD: The first-year of the Pakistan Tehreek-e-Insaf (PTI) government is over, but is the crisis over also? Let’s look at the claims of both critics and admirers of the PTI administration. The critics cite economic downturn, high inflation, high-interest rate, high unemployment, low level of exports, higher debt and now deceleration in large-scale industrial growth as main indicators…Read More

Pakistan govt bans creation of new jobs, purchase of vehicles to fight rising budget deficit

India Today (Aug 25, 2019)

Islamabad, Aug 25 (IANS) Pakistan’s Imran Khan government has banned the creation of new posts, purchase of all vehicles, rationalised utilities spending, provision of one newspaper and decided to keep other expenditures at the bare minimum under its austerity drive for the current fiscal year, said media reports. According to media reports, the increasing budget deficit is a major concern… Read More

If IMF target not met, govt to move mini-budget or cut development budget

The News (Aug 25, 2019)

ISLAMABAD: In the wake of rapidly worsening fiscal position and for fulfilling the IMF condition on primary deficit, the government is left with no other options but to make policy choices either to go for mini budget or slash down development budget. Top official sources said that the policy choices will have to be made in first half of the current fiscal year as the IMF mission was expected to visit Islamabad… Read More

Pakistan fast gaining access to markets of developed nations

Express Tribune (Aug 24, 2019)

KARACHI: Pakistan is fast strengthening trade ties and getting access to markets of several developed countries around the globe in an attempt to increase exports, which is a must to do away with the pressure on the rupee, build foreign currency reserves and steer the country out of the financial crisis. “We have got increased market access to China, Europa… Read More

PM for preparing roadmap to revive economy

The News (Aug 24, 2019)

ISLAMABAD: Taking notice of plunging into severe slowdown, Prime Minister Imran Khan has directed his economic team to prepare a roadmap for revival of national economy aligned with IMF conditions to kickstart sluggish economic activities. The independent economists are expressing their apprehensions that Pakistan is moving towards stagflation where the stabilisation programme under tight nose of IMF scrutiny will… Read More

Pakistan gets $440m worth of fresh loans in July

Express Tribune (Aug 23, 2019)

ISLAMABAD: Pakistan received $440 million in fresh loans last month amid a gradual shift in the financing source from China to multilateral creditors due to completion of many China-Pakistan Economic Corridor (CPEC) projects. The borrowing of $440 million in July 2019 included $173.3 million in commercial loans from Dubai Bank and a consortium of… Read More

Different challenges for Pakistan economy

The Nation (Aug 23, 2019)

Pakistan has been facing different challenges regarding its economy. The economic situation of Pakistan is very critical and people are looking towards the solution of these challenges. Pakistan has different opportunities which can help it to solve its economic problem. But without tackling long term challenges and problems decisively, the country will no longer be able to take advantages… Read More