Issue 42

Budget Study Centre   Issue 42
June 13, 2019


Fortnightly Budget News Alerts

Federal Budget ignores education and health sectors: CPDI

The News (June 13, 2019)

ISLAMABAD: Centre for Peace and Development Initiatives (CPDI) reacts to federal budget 2019-20 with concern as development allocations for education and health sectors decrease while ambitious tax targets and multi folds increase for climate change and water resources seem tough to achieve. The volume of Federal Development Budget 2019-20 is RS949896 million. The share of … Read More

US budget doesn’t contain aid for Pakistan Army

Pakistan Today (June 13, 2019)

The United States’ budget for the upcoming financial year does not include any security assistance for Pakistan’s military but only civilian assistance programming, Principal Deputy Assistant Secretary for South and Central Asia Alice Wells will testify before the House Foreign Affairs Committee (HFAC) in a hearing on ‘US Interest in South Asia and FY 2020 Budget’. As per the statement… Read More

Post-budget press conference

Pakistan Today (June 13, 2019)

While PM’s Finance Adviser Dr Abdul Hafeez Sheikh could not make the annual budget speech because he is not a member of either House, he spoke at length at Wednesday’s traditional post-Budget press conference, untrammelled by parliamentary restrictions, and re-emphasised the message in the Budget speech itself. That was buttressed by the presence at … Read More

Budget 2019-20: Salaried class to pay more taxes under PTI govt

Pakistan Today (June 12, 2019)

LAHORE: The Pakistan Tehreek-e-Insaf (PTI) led government in its first full budget has removed tax reliefs that were introduced by the previous Pakistan Muslim League Nawaz (PML-N) led government for the salaried class. In its latest budget proposed yesterday, Prime Minister Imran’s administration not only announced to lower the threshold of annual income exempted… Read More

Pakistan budget: Overseas Pakistani in the UAE feel neglected again despite sending huge remittances

Gulf News (June 11, 2019)

Dubai: Pakistani expatriates in the UAE have strongly reacted to the first budget presented by the Prime Minister Imran Khan’s government on Tuesday. Most of them believe that the overseas Pakistanis have again been neglected in the Rs6 trillion (Dh147.32) budget. They said that they had high hopes of getting some good incentives as were promised by Imran Khan but he just like the previous government … Read More

PTI’s first federal budget

Pakistan Today (June 11, 2019)

The PTI has handed over all powers to the IMF to take fiscal decisions for the next 40 months. The present Budget underlines what happens to the people when the real budget-makers are not elected representatives. The budget speech by Minister of State Hammad Azhar started with token measures of austerity on the part of the government, like Cabinet members… Read More

Imran to roll out Rs 6.8tr ‘people- friendly’ budget

Pakistan Today (June 10, 2019)

ISLAMABAD: Mired in financial crises amid high inflation rate, the Pakistan Tehreek-e-Insaf (PTI) government led by Prime Minister Imran Khan is all set to roll out its first finance bill on June 11, Tuesday. The budget brings with itself an expected deficit of Rs3 trillion as opposed to the Rs1.8 trillion in the previous budgets. It will be approved by the federal cabinet on Tuesday… Read More

Total revenue remains stagnant in nine months FY 19

Pakistan Today (June 10, 2019)

ISLAMABAD: Pakistan Economic Survey 2018-19 has presented a bleak picture of fiscal development from 2018 July to March 2019, as there was zero growth in total revenue during the first nine months of the outgoing fiscal year. The survey shows that total revenue increased to Rs3,583.7 billion (9.3pc of GDP) during the first nine months of FY2019 from Rs3,582.4… Read More

Pakistan budget: Imran Khan government to present its first budget on Tuesday

Gulf News (June 09, 2019)

ISLAMABAD:The Pakistan Tahreek-i-Insaf led government is all set to present its first Federal Budget for the fiscal year 2019-20 in the Parliament on June 11 (Tuesday). The budget envisages fiscal management, revenue mobilisation, measures for economic stabilisation and growth, reduction in non-development expenditures and boosting exports besides providing relief… Read More

PTI govt set to impose ‘health tax’ on cigarettes, carbonated drinks

Express Tribune (June 09, 2019)

The federal government has decided to impose a ‘health tax’ on cigarettes and carbonated drinks in the upcoming budget for the fiscal year 2019-20. This was confirmed by Prime Minister’s Focal Person for Tobacco Control Babar Bin Atta on Sunday. As part of the proposed move, the federal government has decided to impose a tax of Rs10 on a pack of 20 cigarettes. The government has … Read More

Pakistan sees 2019 GDP growth at 3.3pc, sharply below target

Pakistan Today (June 08, 2019)

ISLAMABAD: Pakistan’s Finance Ministry expects economic growth in the financial year ending in June to hit 3.3pc, well below a target of 6.2pc set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters. The document also sets a target of 4pc growth for the 2020 financial year, underlining the economic headwinds … Read More

Cut in defence budget not due to IMF pressure, says Qureshi

Pakistan Today (June 07, 2019)

Foreign Minister Shah Mahmood Qureshi has rejected the impression that Pakistan has decided to cut its defence budget on the instructions of the International Monetary Fund (IMF). In a statement, Qureshi said that Pakistan’s armed forces have themselves decided not to take an additional share under defence budget in order to lessen the burden on the nation… Read More

Pakistan Army Chief: Voluntary cut in defence budget will not impact response to threats

Gulf News (June 06, 2019)

Islamabad: Pakistan’s Army Chief has said that the voluntary cut in defence budget offered by the military to ease financial woes will not influence their response to any security threat. Talking about the defence cutbacks in upcoming budget, Chief of the Army Staff (COAS) General Qamar Javed Bajwa said on Wednesday that “there shall be no impact on our response potential to all types of threat and quality of… Read More

Govt plans to remove advance tax on tobacco in next budget

The News (June 05, 2019)

ISLAMABAD: The government plans to remove the Advance tax on tobacco in the upcoming Federal Budget 2019 – 2020. The Advance tax of Rs300 per kg is applicable only on the tobacco that enters the Green Leaf Threshing (GLT) plant. All manufacturers who purchase tobacco from farmers must process tobacco through GLT before it can be used for manufacturing of cigarettes. According to … Read More

PM Imran Khan lauds Pakistan Military for voluntarily cutting defence budget

The News (June 05, 2019)

ISLAMABAD: Prime Minister Imran Khan Tuesday lauded the “unprecedented voluntary initiative of stringent cuts” by the Pakistan armed forces, in view of the country’s critical financial situation. The prime minister was particularly appreciative of the armed forces’ decision, in view of the “multiple security challenges” confronting the nation. In an unprecedented move for the betterment of … Read More

Inflation up 9.1% in May

Express Tribune (June 04, 2019)

ISLAMABAD: In line with expectations, the inflation rate edged up to 9.1% in May, which raised questions over the SBP move to increase the key discount rate to 12.25% to meet a condition of the IMF. Core inflation – non-food and non-energy price index – which in April stood at 7% also marginally increased to 7.2% last month, reported the PBS on Monday. The headline as well as core inflation in May was largely … Read More

Industrial development imperative for economic uplift: Dawood

Pakistan Today (June 03, 2019)

ISLAMABAD: Adviser to Prime Minister on Commerce Abdul Razak Dawood on Tuesday termed projects like Allama Iqbal Industrial City “imperative for industrial development” in the country. Talking to Faisalabad Industrial Estate Development and Management Company (FIEDMC) Chairman Mian Kashif Ashfaq during a meeting in Lahore, the adviser lauded the … Read More

Pakistani stocks close in red ahead of federal budget

Daily Times (June 03, 2019)

Pakistan equities closed on Monday on a negative note with benchmark KSE 100 Index shedding 469 points, closing at 35,505 levels, down 1.3 percent. The local bourse kicked off on a negative note where the market nosedived, making a low of -549 points. An equity analyst at IIS Securities said KSE 100 Index opened on a negative note, negative sentiments were carried by … Read More

ICCI calls for solid measures in Budget to reduce inflation

Urdu Point (June 03, 2019)

ISLAMABAD (UrduPoint/ Pakistan Point News / Online 03rd June, 2019) The Islamabad Chamber of Commerce & Industry has called upon the government to take solid measures in the forthcoming budget to reduce inflation as rising inflation has significantly squeezed the purchasing power of people due to which business activities were badly… Read More

A budget looking beyond economic growth

Pakistan Today by Omer Javed (June 02, 2019)

The PTI government came on the agenda of change towards a radically different Pakistan– a new Pakistan– and soon it will be presenting its first budget. One of the main steps to deliver this new Pakistan is to change the way governments have previously thought about budgets. Traditionally, budgets have focussed on economic growth being the main goal– whether it be the increase in the level of output at the… Read More

Budget and oppressive taxes

Daily Times by Dr. Ikramul Haq (June 02, 2019)

In the forthcoming budget, to be announced on June 11, 2019 under a new economic team selected by Pakistan Tehreek-i-Insaf (PTI) on the dictates/recommendations of International Monetary Fund (IMF), there will be enhancement in rates of existing taxes and imposition of new duties as target of Rs. 5500 billion has been agreed with lender of the last resort! The new Chairman… Read More

Modi govt to present Budget 2019-20 on July 5 (June 01, 2019)

The newly-appointed Finance Minister Nirmala Sitharaman will present the full Budget for 2019-20 on July 5 in the Lok Sabha. This will be first full Budget of Modi 2.0 government. In view of the general elections, the interim Budget for the current fiscal was presented by the then Finance Minister Piyush Goyal. The Union Cabinet, chaired by Prime Minister Narendra Modi, in its first meeting has… Read More

PTI govt to present common man’s budget: Hafeez Sheikh

Pakistan Today (June 01, 2019)

Advisor to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh said on Saturday the Pakistan Tehreek-e-Insaf (PTI) government’s top priority is to give relief to the common man in the upcoming fiscal year’s budget. Speaking to a delegation of businessmen, he said tough decisions are being made by the government to steer the country out of the prevalent… Read More

Pakistan to repay over $9b on debt servicing

The News (May 31, 2019)

ISLAMABAD: Pakistan will have to repay over $9 billion on account of debt servicing of foreign loans both in shape of principle and interest payments during the next budget 2019-20, The News has learnt. This whopping loan repayment of $9 billion will be due despite getting rollover assurances from the friendly countries including China under the IMF loan conditions and … Read More

Pakistan economic crisis: USD 1 May equal 200 PKR by Year-End (May 31, 2019)

Pakistan’s rupee has dropped more than 5% in May, breaching the 150-per-dollar level last week. The drop was primarily the result of Islamabad agreeing to another International Monetary Fund loan to avert Pakistan’s economic crisis. However, experts feel that Pakistan’s rupee could drop further and may even hit 200 per dollar if the trend continues… Read More