Issue 64

Budget Study Centre   Issue 64
April 16, 2020


Fortnightly Budget News Alerts

Pakistan’s budget deficit may hit record high due to coronavirus

The Express Tribune (Apr 16, 2020)

ISLAMABAD: Pakistan’s budget deficit is expected to rise to the highest level in history to 9.2% of the size of national economy or Rs4 trillion in current fiscal year due to the impact of deadly contagion on revenues and expenses, says a new report of the International Monetary Fund (IMF). In the Middle East and Central Asia Regional Economic Outlook (REO) Update released on Wednesday… Read More

Next budget an opportunity to revive agri sector: Asad

The News (Apr 16, 2020)

ISLAMABAD: National Assembly Speaker Asad Qaisar said that upcoming federal budget as an opportunity to revive the lost momentum of the agriculture sector. He expressed these views during a meeting with the newly appointed Federal Minster for National Food Security, Syed Fakhar Imam, the Federal Minister for Planning, Development and Special Initiative, Asad Omer and several… Read More

Budget 2020-21: preparations

The Business Recorder (Apr 15, 2020)

Preparation for budget 2020-21 has been ongoing for months and though, disturbingly, the medium-term budget strategy paper 2020 approved by the cabinet on 18 March failed to take account of the tremendous challenges facing the global economy in the backdrop of the raging pandemic with greater devastating implications on the economies of heavily indebted… Read More

Current account deficit contracts to six-year low, says SBP report

The Daily Times (Apr 15, 2020)

According to SBP report, the current account deficit contracted to a six-year low, foreign exchange reserves increased, the primary budget recorded a surplus. According to a report, the stabilization efforts and regulatory measures yielded notable improvements during the first half of the fiscal year 2020, however, noted that the global and domestic spread of Covid-19 has brought an exceptional set of… Read More

GDP growth likely to contract further in FY20: SBP

The Pakistan Today (Apr 14, 2020)

KARACHI: The State Bank of Pakistan (SBP) said on Tuesday that the country’s GDP growth projections for fiscal year 2020, currently at 3pc, are likely to contract further in the coming months.
According to the SBP’s ‘Second Quarterly Report for fiscal year 2020 on The State of Pakistan’s Economy’, achieving this year’s real GDP growth target of 4pc had been unlikely, as the agriculture sector’s… Read More

NA budget session: Panel set up for working out SOPs

The Business Recorder (Apr 14, 2020)

National Assembly Speaker Asad Qaiser Monday said that a committee has been constituted to evolve a strategy and work out standard operating procedures (SOPs) after discussion and consultation with the representatives of the government and opposition for holding Budget 2020-21 session of the Parliament. Addressing a joint news conference with Minister for… Read More

Russia Needs Additional $54.5bln in 2020 to Cover Budget Needs, Support Economy – Kudrin

The Urdupoint (Apr 13, 2020)

MOSCOW (UrduPoint News / Sputnik – 13th April, 2020) Russia needs additional 4 trillion rubles ($54.5 billion) this year to cover all budgetary needs and prop up the economy, and supporting business may require 2-3 trillion rubles more amid the global coronavirus pandemic, Chairman of the Accounts Chamber Alexei Kudrin said Monday. “The Federal authorities estimate missed revenue from oil… Read More

Speaker to discuss budget with parliamentary leaders

The Dawn (Apr 13, 2020)

ISLAMABAD: National Assembly Speaker Asad Qaiser has decided to consult parliamentary leaders of all political parties in the National Assembly on presentation and passage of the federal budget for the next fiscal. In a statement issued by the National Assembly Secretariat here on Sunday, the speaker said the federal budget for the fiscal 2020-21 was scheduled to be presented… Read More

Budget 2020-21: There is no room for additional taxation: Pasha

The Business Recorder (Apr 12, 2020)

There is no room for additional taxation in the next budget as an additional taxation of Rs735 billion in the current budget has already ruined the economy, said renowned economist Dr Hafiz Pasha. Talking to Business Recorder, he said the government should immediately restore the zero-rating facility on exports if it has a cushion of Rs 100 to 150 billion in the next budget, especially… Read More

Pak seeks additional $1.4b from IMF Govt likely to miss tax collection target by around Rs1500 billion

The Nation (Apr 12, 2020)

ISLAMABAD-The government is likely to miss the tax collection target by around Rs1500 billion during ongoing fiscal year mainly due to inability of Federal Board of Revenue (FBR) and slowdown in economic activities due to coronavirus. Federal Minister for Planning and Development Asad Umar on Saturday said that tax collection could reduce by Rs1400-Rs1500 billion during ongoing… Read More

NA Secretariat mulling contingency plan for budget session: speaker

The Pakistan Today (Apr 11, 2020)

ISLAMABAD: National Assembly Speaker Asad Qaisar on Saturday said in consultations with all the political parties, the National Assembly Secretariat is evolving a contingency plan for the upcoming budget session and in case the disease doesn’t die down. In an exclusive interview with Pakistan Today, Asad Qaisar shrugged away the impression that… Read More

March US deficit shrinks, but virus budget storm seen in April

The Business Recorder (Apr 11, 2020)

WASHINGTON: The March US budget deficit shrank to $119 billion from $147 billion a year earlier as receipts grew and calendar shifts reduced outlays, but the data reflect only a minimal impact from massive coronavirus rescue spending, the US Treasury said on Friday. Large outlays from the $2.3 trillion coronavirus legislation passed on March 27 and reduced… Read More

Covid-19 effects: Pakistan estimates 0.8 to 1.3pc loss to GDP growth

The News (Apr 10, 2020)

ISLAMABAD: Pakistan has made assessment of Covid-19 pandemic affects on the country’s GDP growth ranging from 0.8 to 1.3 percent and decided to prepare action plan for social/economic fronts in consultation with the World Bank (WB) to mitigate negative impacts. The Planning Commission assessed that Pakistan’s GDP growth would face effects of Covid-19 in the range of 0.8 to 1.3 percent so… Read More

Rs 2.5 billion relief package to be enhanced to Rs 7 billion: Firdous

The Business Recorder (Apr 10, 2020

Special Assistant to the Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan Thursday said that Rs2.5 billion relief package had been announced, which would be enhanced to Rs7 billion. Besides, the prime minister has also approved Rs10 billion for smooth supply of essential items on subsidised rates through the Utility Stores Corporation. Addressing … Read More

Russian PM warns COVID-19 eating budget allocation

The (Apr 09, 2020)

MOSCOW: The Russian government recently published a number of decrees that revises the allocation of the state funds as prime minister warned Thursday the budget will be seriously hit by the coronavirus pandemic. Changes were made to support domains worst-hit by the virus and financing was increased by cutting programs for… Read More

IMF to provide Pakistan $1.4 billion to stabilise economy amid coronavirus crisis

The News (Apr 09, 2020)

The International Monetary Fund plans on providing Pakistan $1.4 billion by next week to improve the country’s financial situation as it fights coronavirus, Arab News reported on Wednesday. According to the publication the aid aims “to boost its foreign exchange reserves and get some budgetary support in the wake of the economic slowdown due to the coronavirus… Read More

Govt releases Rs 7.109 bln for Finance Division projects

The Nation (Apr 08, 2020)

The Federal government has so far authorised to release Rs 7109.03 million for various ongoing and new projects of Finance Division under its Public Sector Development Programme (PSDP) 2019-20, as against its total allocation of Rs 11834.749 million. Out of the total, Rs 800 million have been authorized to be released for Construction of Sibbi Rakhni Road, out of its total allocations … Read More

Public debt up 5.14 percent to Rs33.421trln in July-Feb FY20

The News (Apr 08, 2020)

KARACHI: Pakistan’s public debt rose by 5.14 percent to Rs1.635 trillion in the eight months of the current fiscal year, mainly due to increase in domestic debt accumulation, the central bank data showed on Tuesday. Public debt was Rs33.421 trillion at the end of February 2020, up from Rs31.786 trillion till end June 2019. Domestic debt increased 7.02 percent to Rs22.188 trillion… Read More

IMF delays approval of review for $450m tranche

The Express Tribune (Apr 07, 2020)

ISLAMABAD: The International Monetary Fund (IMF) has postponed approval of second review of the $6-billion bailout programme that was scheduled for coming Friday due to delay in implementing agreed actions by Pakistan. The IMF has confirmed the development but says its priority has now shifted to the approval of a rapid financing facility of $1.4 billion… Read More

COVID-19 | Sitharaman must press the reset button and present Budget 2020 2.0

The (Apr 07, 2020)

On February 1, when Finance Minister Nirmala Sitharaman presented her second budget, she was broadly confronted with the following constraints. Households weren’t spending, companies were sitting on a piling mount of unsold stocks, farmers remained in distress, the world economy was shaky, the tax revenue flows were wobbly and the queue of job hopefuls was… Read More

Pakistan’s economic growth faces headwinds in 2020, recovery in 2021: ADB

The Nation (Apr 06, 2020)

Economic growth in Pakistan is expected to slow to 2.6 percent this year due to ongoing stabilization efforts, slower growth in agriculture and the impact of the COVID-19 outbreak, before recovering to 3.2 percent in 2021 according to the Asian Development Bank’s (ADB) latest annual flagship economic publication, Asian Development Outlook (ADO) 2020. “Pakistan’s strong and decisive policy… Read More

Lockdown affecting Pakistan’s economy: Asad Umar

The (Apr 05, 2020)

Federal Minister for Planning and Development Asad Umar said that the lockdown across Pakistan due to the outbreak of the coronavirus is affecting the country’s economy. The economic situation was effecting the rich and poor alike, Umar said while addressing a press conference at the National Command and Control Centre on Sunday. He, however, admitted that the number of cases has gone down… Read More

Govt to prepare budget amidst uncertainty caused by COVID-19

The Nation (Apr 05, 2020)

ISLAMABAD: The government might struggle to prepare budget for next fiscal year primarily due to uncertain economic situation caused by the prevailing coronavirus pandemic in the country. The government had earlier planned to announce the budget 2020-21 in the last week of May and had started preparations in this regard. However, the ministry of finance recently suspended the budget… Read More

World Bank sees Pakistan’s economic growth sliding to 1%

The Express Tribune (Apr 04, 2020)

ISLAMABAD: Pakistan’s economic growth may slip to nearly 1% — the situation that the country went through at the time of the last severe global financial crisis – because of the adverse effects of the novel coronavirus outbreak on the manufacturing and services sectors, the World Bank said on Friday. The global lender also said the country’s budget deficit would further widen by 2% of its GDP… Read More

World Bank sees Pakistan’s economic growth sliding to 1%

The Express Tribune (Apr 04, 2020)

ISLAMABAD: Pakistan’s economic growth may slip to nearly 1% — the situation that the country went through at the time of the last severe global financial crisis – because of the adverse effects of the novel coronavirus outbreak on the manufacturing and services sectors, the World Bank said on Friday. The global lender also said the country’s budget deficit would further widen by 2% of its GDP… Read More

German budget surplus declines to 45.2b euros

The Pakistan Observer (Apr 04, 2020)

BERLIN Germany’s budget surplus declined to 45.2 billion euros (48.8 billion U.S. dollars) in 2019, the German Federal Statistical Office (Destatis) an nounced. According to Destatis, all government levels recorded a positive net lending balance. The federal government recorded a surplus of 14.8 billion euros while the states even recorded a surplus of 16.6 billion euros. However, Germany’s total budget surplus declined by 8.5 billion euros compared to 2018… Read More

Pakistan’s economy to slowdown to 2.6pc this year: ADB

The Global Village Space (Apr 03, 2020)

The Asian Development Bank (ADB) has projected Pakistan’s economic growth will slow to 2.6 percent this year due to ongoing stabilization efforts and the ongoing pandemic. This has impacted badly the already tumultuous economy of Pakistan. Pakistan’s strong and decisive policy measures have started to yield positive results in reversing macroeconomic imbalances and narrowing … Read More

Pakistan economy to loose 2.5 trillion due to coronavirus: report

The (Apr 03, 2020)

ISLAMABAD: The federal government on Thursday worked out the impact of losses of pandemic COVID-19 virus on some sectors of the national economy and shared the initial assessment that total losses stood at the whopping figure of Rs 2.5 trillion, reported The News. Official estimates first time shared with a selected group of reporters in the aftermath of the outbreak of coronavirus reveal… Read More