Issue 57

Budget Study Centre   Issue 57
Dec 28, 2019


Fortnightly Budget News Alerts

World Bank revises Pakistan’s growth projections downward

Dawn (Jan 09, 2020)

ISLAMABAD: The World Bank on Wednesday slightly lowered country’s growth rate projections for the current fiscal year and next two years owing to continuation of tight monetary policy and fiscal consolidation coupled with external factors. In its latest report “2020 Global Economic Prospects” released on Wednesday, the bank forecast Pakistan’s current year growth rate at… Read More

Foreign exchange: SBP reserves jump $14m to $11.5b

The Express Tribune (Jan 09, 2020)

KARACHI: The foreign exchange reserves held by the central bank increased 0.12% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. Earlier, the reserves had spiralled downwards, falling below the $7-billion mark, which raised concern over Pakistan’s ability to meet its financing requirements… Read More

Govt to set up Pakistan Corporate Restructuring Company to boost economy

Pakistan Today (Jan 08, 2020)

ISLAMABAD: Following the directions of Prime Minister Imran Khan to boost economic growth and create employment opportunities, the government plans to establish Pakistan Corporate Restructuring Company with an allocation of Rs 500 million as initial capital. According to the sources, the company will be established in partnership with 10 banks and will be tasked with the rehabilitation of sick units… Read More

FBR notices fall in WHT collection by some agents

The Express Tribune (Jan 08, 2020)

Our ISLAMABAD: The Federal Board of Revenue (FBR) has noted a drastic reduction in the receipt of withholding taxes imposed on the supply and contracts of goods and services from some agents for the July-December period of the ongoing fiscal year. The overall revenue collection has dropped by Rs287 billion, which has also been impacted by poor collection of withholding taxes. Between July and… Read More

SBP fears country will miss 4% growth target

The Express Tribune (Jan 07, 2020)

KARACHI: The State Bank of Pakistan (SBP) has voiced fear that the country will miss the economic growth target of 4% as two major sectors – agriculture and industries – have failed to perform well in the ongoing fiscal year.The central bank, however, foresaw a notable drop in the current account deficit, projecting the deficit would remain in the range of 1.5% to 2.5% of gross domestic product … Read More

ECNEC approves seven development projects worth Rs216.4 billion

The Nation (Jan 07, 2020)

ISLAMABAD-The Executive committee of the National Economic Council (ECNEC) on Monday approved seven development projects worth Rs216.4 billion that related to poverty alleviation, education, hydropower project and others. Adviser to the Prime Minister on Revenue and Finance Dr Abdul Hafeez Shaikh chaired the meeting of the ECNEC. The ECNEC considered and approved seven… Read More

Pakistan’s Economy Moves Progressively In 1st Quarter: State Bank of Pakistan

Urdu Point (Jan 06, 2020)

ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 6th Jan, 2020 ):The State Bank of Pakistan Monday said during first quarter of current fiscal year FY20, Pakistan’s economy moved progressively along the adjustment path. In its first quarterly report, “the said macroeconomic stabilization process picked up momentum with the initiation of the… Read More

Mini-budget on cards

The News (Jan 06, 2020)

Pakistan’s imports have declined to the tune of $6 billion so far, and with this new realities are emerging on the economic front of Pakistan. The country will likely readjust policies over short to medium-term. With the changing security environment in the aftermath of the killing of Iranian general in Baghdad, international oil prices might escalate… Read More

Pakistan can ease inflation, fight poverty with lift from FTA, CPEC: Global Times

The Associated Press of Pakistan (Jan 05, 2020)

Beljing, Jan 5 (APP):A China-Pakistan free trade agreement (FTA) and the China-Pakistan Economic Corridor (CPEC) can play an important part in leading Pakistan’s economy to prosperity. The tariff arrangement documented in the second phase of the China-Pakistan FTA, which was signed by leaders of the two countries in April, came into force on the first day of 2020, Global Times, a daily Chinese tabloid… Read More

FBR claims loss of Rs330b due to import compression

The Express Tribune (Jan 05, 2020)

ISLAMABAD: Amid criticism over missing the revenue collection target by a wide margin, the Federal Board of Revenue (FBR) has claimed that it sustained losses of roughly Rs330 billion due to $6 billion worth of import compression in first half of the current fiscal year. The tax shortfall due to import compression and low economic activity has also led to the missing of the indicative… Read More

PM to set 5-year vision to push growth, investment

The India Tribune (Jan 04, 2020)

New Delhi, Jan 3 (IANS) Weeks before the Union Budget and in the wake of slowing economy, Prime Minister Narendra Modi has started taking presentations from the sector-specific committee of secretaries (CoS) which will be the basis for setting a five-year vision for various ministries and departments. The key ministries are set to apprise the PM and the Council of Ministers … Read More


Daily Times (Jan 04, 2020)

“An unusual decline in revenue collection and steep rise in current expenditures caused a deterioration in all major fiscal indicators during FY19. The overall budget deficit during the year stood at a historic high of 8.9 percent of GDP, which was also in excess of the 4.9 percent target set in the Budget 2018- 19. Meanwhile, the primary and revenue balances worsened substantially… Read More

Rupee loses 3 paisas

The Nation (Jan 03, 2020)

ISLAMABAD           –            The exchange rate of US Dollar against Pakistani rupee increased by Rs0.03 in interbank on Thursday and was traded at Rs154.87 against Rs154.84 of last trading day, State Bank of Pakistan (SBP) reported. In open market, the buying and selling rates of Pakistani rupee against dollar stood at Rs154.4 and Rs155 respectively.  The SBP further reported that… Read More

U.A.E. Announces $200mn to boost economic projects in Pakistan

Newsweek Pakistan (Jan 03, 2020)

Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed on Thursday announced an allocation of $200 million to support small and medium-sized enterprises in Pakistan, the Emirates News Agency reported. Launched on the sidelines of his daylong visit to Pakistan, the initiative under the Khalifa Fund for Enterprise Development would support economic projects and encourage “innovation in… Read More

‘Exports depend on country’s image abroad’

Express Tribune (Jan 02, 2020)

FAISALABAD: The business community must play a proactive role in promoting a soft image of Pakistan at the international level because it is directly linked with the country’s exports, said Ministry of Human Rights Joint Secretary Malik Kamran Azam. Addressing businessmen at the Faisalabad Chamber of Commerce and Industry (FCCI), he… Read More

The World Economic Forum faces big challenges at Davos 2020

The New Economy (Jan 02, 2020)

The World Economic Forum (WEF) Annual Meeting seems to have lost its mojo – particularly in the West, where globalisation is being rejected in favour of a more protectionist outlook. What’s more, most observers of the 2019 meeting found that it fell a little flat. Headline speakers were underwhelming and failed to live up to the box-office acts of previous years, which included the likes of US President Donald… Read More

Tough decisions: 2019 sees Pakistan economy emerge out of deep waters

Express Tribune (Jan 01, 2020)

ISLAMABAD: The year 2019 has brought stability to Pakistan’s flagging economy after Prime Minister Imran Khan entered into the “last International Monetary Fund Programme”. Pakistan has availed three IMF programmes since 2008 to address its structural problems, which still remain unaddressed. The country’s savings and revenues as percentage of total size of its economy… Read More

Revamping Pakistan’s economy in 2020

Daily Times (Jan 01, 2020)

The world has stepped into a new decade with the start of 2020. But, we as a nation as still standing decades behind the rest of the world. Out of many reasons for the backward crawl of Pakistan, the economy has been the burning issue for every Government in the country. With Imran Khan’s PTI leading the country in a new decade, one must be wondering … Read More

Dollar depreciates Rs0.09 against rupee interbank

Pakistan Today (Dec 31, 2019)

ISLAMABAD: The exchange rate of the US Dollar against Pakistani rupee shed Rs0.09 in interbank on Tuesday and was traded at Rs154.84 against Rs154.93 of last trading day, State Bank of Pakistan (SBP) reported. The SBP further reported that in interbank the price of Euro appreciated by Rs0.21 and was traded at Rs173.58 against the last closing of Rs173.37… Read More

Pakistan will hit the road to prosperity in the 2020s

Khaleejtimes (Dec 31, 2019)

I am late by a day, at least, in getting back to my keyboard. Dense fog forcing the motorway closure kept me outstation – where I had gone for my daughter’s wedding – until the sun I had so anxiously waited for made way for me to travel back home. And here I am, witnessing the year 2019 drawing to a close and hearing the year 2020s loud knock at the door… Read More

Social development among top CPEC targets for 2020: envoy

The Pakistan Today (Dec 30, 2019)

ISLAMABAD: Chinese Ambassador Yao Jing said on Monday that China and Pakistan have identified new projects in education, health, agriculture and construction sectors for the year 2020 under the new phase of the China, Pakistan Economic Corridor (CPEC). Addressing the participants of Sangam Club Gala 2019 at the Chinese Embassy, the envoy said that both China… Read More

US trade frictions dealt with proactively: China

Express Tribune (Dec 30, 2019)

BEIJING: China’s commerce ministry has “proactively dealt with” trade frictions with the United States this year, it said on Sunday after an annual work conference. The ministry has implemented the decisions of the central government and “resolutely safeguarded the interests of the country and the people”, it said in a statement on its website… Read More

IMF appreciates improvements in Pakistan’s economy (Dec 29, 2019)

International Monetary Fund has acknowledged that Pakistan’s reform program is on track and already producing results. According to a Press Release of Finance Ministry, IMF in its latest report conceded that the business climate has improved, and market confidence is returning. The report confirmed that inflation has been started to stabilize and the State Bank of Pakistan’s… Read More

Dubai announces biggest ever Dh66.4 billion 2020 budget

Gulf News (Dec 29, 2019)

Dubai: The Government of Dubai has allocated a record Dh66.4 billion ($18.1 billion) for the 2020 budget compared Dh56.8 billion budgeted in 2019. His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved the 2020 budget along with a three-year Dh196 billion 3-year budget for the Government of… Read More

Pakistan’s debt falls to 84.7pc of GDP: IMF

Dawn News (Dec 28, 2019)

ISLAMABAD: Pakistan’s general government debt (including guarantees and the International Monetary Fund borrowing) declined to 84.7 per cent of GDP, from 88pc. A recently published report on Pakistan by IMF said this decline in debts was mainly driven by the government’s smart performance in reducing expenditures, registering primary budget surplus and… Read More

Financial sectors excluded from NAB purview

The Express Tribune (Dec 14, 2019)

ISLAMABAD: President Dr Arif Alvi on Friday promulgated the NAB Amendment Ordinance 2019 – a move which curtails the sweeping powers of the anti-corruption watchdog to act against any individual accused of corruption at will. The new ordinance provides more protection to a public office holder or government official while at the same time excludes several… Read More

IMF lauds Pakistan’s efforts to bring economy on growth track

The Gulf Times (Dec 27, 2019)

The International Monetary Fund (IMF) has said that the industrial and social sectors in Pakistan have improved, adding that its latest economic reform programme is on track too.
“The government of Pakistan is now determined and committed to implementing strong and solid economic programmes with IMF’s support,” said Maria Teresa Daban Sanchez, the IMF resident… Read More

Pakistan’s debt falls by 3.3% of GDP: IMF

The News (Dec 27, 2019)

ISLAMABAD: Pakistan’s general government debt (including guarantees & IMF borrowing) during the first quarter of current fiscal year, showed significant decline as it fell to 84.7 percent of Gross Domestic Product (GDP), however by the end of previous year, the country’s debt had risen to 88 percent of GDP. A recently published report on Pakistan by International Monetary Fund (IMF) said that… Read More