Issue 65

Budget Study Centre   Issue 65
April 30, 2020


Fortnightly Budget News Alerts

Federal budget 2020-21 to be announced in first week of June

The Nation (Apr 30, 2020)

ISLAMABAD – The federal budget 2020-21, to be announced in the first week of June, would focus on mitigating people’s sufferings through different measures including creation of job opportunities, Advisor to Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh said. The budget would be formulated considering the impact of COVID-19 on the people and businessmen,… Read More

Budget 2020-21 to mitigate people’s sufferings: Hafeez

The News (Apr 30, 2020)

ISLAMABAD: The federal budget 2020-21, to be announced in the first week of June, would focus on mitigating people’s sufferings through different measures including creation of job opportunities, Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh said.The budget would be formulated considering the impact of COVID-19 on the people and businessmen, he said while… Read More

Budget deficit to swell to 9.6pc of GDP due to lockdown situation

The Nation (Apr 29, 2020)

ISLAMABAD-A high-level meeting on Tuesday noted that Pakistan’s budget deficit would swell to 9.6 percent of the GDP, economic growth would be contracted by 1.5 percent while the impact on the poverty figures could also be higher due to closure of businesses and restricted economic activity due to the lockdown situation. A high Ievel meeting underlined several challenges the country was likely… Read More

‘Federal budget in 1st week of June, to focus on mitigating people’s sufferings’

The Pakistan Today (Apr 29, 2020)

ISLAMABAD: The federal government would present the budget for the fiscal year 2020-21 in the parliament in the first week of June 2020, with special focus on mitigating sufferings of people through various measures and creating employment opportunities for them, said Adviser to Prime Minister of Finance and Revenue Dr Abdul Hafeez Shaikh. The budget would be formulated… Read More

India has Third Biggest Military Budget in the World Now

The (Apr 28, 2020)

The Stockholm International Peace Research Institute (Sipri) in its annual report said that India has the third biggest military budget in the world last year, following United States and China. The military spending of India of $71 billion was 6.8% more than its 2018 expenditure. It increased by 259% over a 30-year period from 1990 to 2019 and it grew by 37% from 2010-19. When it comes to the GDP, the… Read More

ADP budget faces cut as Sindh worries about its shrinking share in federal pool

The News (Apr 28, 2020)

Sindh Chief Minister Syed Murad Ali Shah has said the Federal Board of Revenue (FBR) had earlier set a revenue collection target of Rs5.5 trillion for the current financial year, but now it is expecting to collect Rs3.9 trillion in which the share of the Sindh government has been cut down from Rs835 billion to Rs602 billion, showing a shortfall of Rs233 billion. “This is a very serious situation… Read More

Russia’s budget spending rules hindering anti-crisis funding, economists say

The (Apr 27, 2020)

MOSCOW (Reuters) – The regulations governing budget spending in Russia, where the economy is slipping into recession due to low oil prices and the coronavirus pandemic, are hindering its ability to adequately fund anti-crisis measures, economists have said. Russia overtook mainland China on Monday in terms of its number of confirmed new coronavirus cases, with a national tally… Read More

Pakistan’s economy in deep trouble

The Express Tribune (Apr 27, 2020)

KARACHI: The World Bank has warned that Pakistan’s economy can shrink 1.3% to 2.2% in the current fiscal year whereas the International Monetary Fund (IMF) says the economy may contract 1.5%. The State Bank of Pakistan (SBP) also believes all growth indicators will have to be revised downwards. These are really very troubling times for the nation of 220 million already suffering from a range of structural… Read More

Govt likely to keep budget deficit target at Rs3 trillion during FY21

The Nation (Apr 26, 2020)

ISLAMABAD – The government is likely to keep budget deficit target at Rs3 trillion (6.6 percent of the GDP) during next fiscal year (FY21).The country’s budget deficit is expected to widen to Rs3.916 trillion (9.3 percent of the GDP) during current financial year. Budget deficit would swell to Rs3.916 trillion in the current fiscal year (FY20) after coronavirus situation against the early projection of … Read More

Cement sector urges govt to reduce sales tax to 15% in budget

The Pakistan Today (Apr 25, 2020)

LAHORE: The country’s cement sector which incurred heavy losses in the 3QFY20 has urged the government to reduce the federal sales tax from 17pc to 15pc in the upcoming federal budget. All Pakistan Cement Manufacturers Association (APCMA) Chairman Azam Faruque in his letter to Prime Minister Imran Khan’s Adviser on Finance and Revenue Abdul Hafeez Shaikh has proposed… Read More

Ministries, divisions: MoF sets up desk for receiving budget orders

The Business Recorder (Apr 25, 2020)

The Finance Ministry has set up a front desk in the ministry for receiving budget orders from the ministries and divisions for the next fiscal year, and has directed that only one relevant person along with summary of demands should approach the desk owing to threat of COVID-19 spread. The ministry issued procedure for receiving budget orders/new item statements for the next fiscal year… Read More

ADB to provide $1.7 billion to Pakistan for dealing with coronavirus pandemic

The Nation (Apr 25, 2020)

ISLAMABAD-The Asian Development Bank (ADB) would provide $1.7 billion to Pakistan during ongoing calendar year for dealing with the coronavirus pandemic. The ADB would provide $800 million budgetary support to Pakistan by June 2020. The remaining $900 million will be given by December 2020. The ADB will provide this amount on concessional terms, according to the Economic Affairs…Read More

Pakistan hasn’t received any foreign aid to fight corona, says PM Imran

The Pakistan Today (Apr 24, 2020)

ISLAMABAD: Prime Minister Imran Khan on Friday said that Pakistan has not received any financial assistance from any country or global organisation despite the coronavirus outbreak in the country which has infected more than 11,500 people and claimed over 240 lives. During a meeting with social media influencers and journalists, he said the situation developing after the pandemic is a big test for the… Read More

Pakistan’s economy to contract only modestly

The Express Tribune (Apr 24, 2020)

KARACHI: Moody’s Investors Service – one of the top three global credit rating agencies – has anticipated that Pakistan’s economic growth will shrink much less than what the country’s central bank, International Monetary Fund (IMF) and World Bank have projected in response to the coronavirus pandemic. “We expect Pakistan’s real GDP (gross domestic product) to contract… Read More

Pakistan Gets Unexpected Economic Relief in a Time of Global Crisis

The Diplomat (Apr 23, 2020)

For months, Pakistan has struggled to find an opportunity that could ease the country’s balance of payments crisis. From imposing a stricter tax regime to scaling up its interest rates, the current government has done it all to increase its revenue. Despite all these efforts to uplift the economy, the indicators of Pakistan’s economic growth have remained dismal. However, that may … Read More

SBP revises projection for budget deficit, predicts negative GDP growth for remaining fiscal year

The (Apr 23, 2020)

ISLAMABAD: The State Bank of Pakistan (SBP) has revised upward its projection for the country’s escalating budget deficit to 9.2% of GDP equivalent to Rs3,857 billion in post-COVID-19 situation for the current fiscal year against earlier projection of 7.2% of GDP or Rs3,170 billion. In an online presentation given to selected economic analysts by SBP Governor Reza Baqir and Deputy… Read More

The IMF and Pakistan

The Business Recorder (Apr 22, 2020)

The Resident Representative of the International Monetary Fund (IMF) in Pakistan Teresa Daban Sanchez stated during an online policy dialogue organised by the SDPI that the Fund will remain engaged with the Pakistani authorities ‘advising on a good budget’. The budget expected to be announced after Ramazan, in the last week of May or early June, is in all probability already under preparation in the Ministry of… Read More

Central Banker Says Ready to do More to Shield Pakistan Economy

The (Apr 22, 2020)

Pakistan had taken a number of reform steps to bolster its economy before the virus hit and is ready to do more as it heads for a rare contraction, the nation’s central bank governor said. The central bank stopped lending directly to the government to help plug its budget deficit, switched to a market-based exchange rate and took other measures to improve external and fiscal… Read More

FY21 budget: IMF working closely with authorities: Sanchez

The Business Recorder (Apr 21, 2020)

While emphasising the need for adopting good taxation principles with sometime increase in the tax-base and sometime increase in rates, the International Monetary Fund (IMF) Monday, stated that it was working closely with the Pakistani authorities on preparing budget for the next fiscal year. This was stated by Teresa Daban Sanchez, resident representative … Read More

Covid poses threat to normal holding of NA budget session

The Dawn (Apr 20, 2020)

ISLAMABAD: The coronavirus pandemic is likely to create a constitutional crisis for the country as the first meeting of a special parliamentary committee will on Tuesday decide how the National Assembly’s budget session will be conducted in the wake of the outbreak. The task seems to be a difficult one amid reports that two staff members of the Parliament House have… Read More

Govt releases Rs962.7m for revenue division projects

The Nation (Apr 20, 2020)

ISLAMABAD-The Federal government has so far authorised release of Rs 962.725 million for various ongoing and new projects of Revenue Division under its Public Sector Development Programme (PSDP) 2019-20, as against its total allocation of Rs1728.238 million. Out of the total amount, Rs265.416 million have been authorised to be released for establishment of Inland Revenue … Read More

Opposition support sought for K-P budget

The Express Tribune (Apr 20, 2020)

PESHAWAR: Given the novel coronavirus (Covid-19) pandemic, which has so far claimed 60 lives amid 1,137 cases in the province, Khyber-Pakhtunkhwa (K-P) Assembly Speaker Mushtaq Ahmed Ghani has decided to consult opposition lawmakers on devising a strategy for presenting the budget for the fiscal year 2020-21. The next fiscal budget is expected to be tabled in mid-June. A source at the K-P… Read More

Pakistan likely to miss all economic targets: IMF

The Nation (Apr 19, 2020)

ISLAMABAD: The International Monetary Fund (IMF) has projected that Pakistan would miss all economic targets during the ongoing fiscal year as the country is facing unprecedented health and economic shocks from the rapid propagation of the COVID-19 outbreak. The IMF in its latest report on Pakistan’s economic situation has noted that the budget deficit would… Read More

PPP leader urges PTI govt to focus on health in budget

The Express Tribune (Apr 19, 2020)

KARACHI: Pakistan Peoples Party central leader Sherry Rehman on Saturday urged the government to concentrate on the healthcare system in the upcoming budget to assist the people on the frontline in the war against Covid-19. “The medical and non-medical staff on the frontline [in the war against the novel coronavirus] should be protected and the health sector should… Read More

$1.38 bn injection to cushion economy from external risks/h1>
The News (Apr 18, 2020)

ISLAMABAD: With the approval of $1.38 billion addressing external risks to Pakistan’s economy in the wake of COVID-19 outbreak, the International Monetary Fund (IMF) has cut down all macroeconomic targets including shrinking GDP growth, worsening budget deficit especially primary deficit, escalating debt burden, reducing remittances, and exports and investment. The Fund has… Read More

After $1.4b approval, IMF puts on hold $6b EFF programme

The Pakistan Today (Apr 18, 2020)

ISLAMABAD: In the wake of coronavirus pandemic and disbursement of $1.386 billion under the Rapid Financing Instrument (RFI) to help Pakistan address the economic impact of COVID-19 shock, Pakistan and the International Monetary Fund (IMF) have reportedly agreed to put on hold the existing $6bn Extended Fund Facility (EFF) programme, a local newspaper reported. It has been learnt… Read More

FPCCI budget proposals seek reduction in tax rates

The News (Apr 17, 2020)

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has finalised its proposals for the federal budget, and recommended to reduce the tax rates to help increase competitive edge of indigenous products in both local and global markets. FPCCI’s proposals envisage revamping taxation system, documentation of economy, employment generation through… Read More

Pakistan among 76 countries to get debt relief from May 1

The Pakistan Today (Apr 17, 2020)

ISLAMABAD: Foreign Minister Shah Mahmood Qureshi on Thursday said that on Prime Minister Imran Khan’s appeal, the G20 countries have decided to provide debt relief to 76 developing countries, including Pakistan, and this decision will be effective from May 1. Addressing a press conference in the federal capital, he said that this is a very timely decision and will give developing… Read More