Issue 68

Budget Study Centre   Issue 68
June 11, 2020


Fortnightly Budget News Alerts

Pakistan’s budget deficit likely to be more than Rs3,427 billion

The Gulf Today (June 11, 2020)

Prime Minister Imran Khan has chaired meeting of National Economic Council (NEC) in Islamabad and deliberated on economic affairs of the country. According to details, the participants have suggested to cut federal and provincial development budgets by 18 per cent. They have also talked on setting Rs11,413 billion for development projects from the overall budget. Read More

Govt to present tax-free budget on Friday

The Pakistan Today (June 11, 2020)

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government is all set to present its second federal budget for the fiscal year 2020-21 in the National Assembly on Friday. According to sources, the government is likely to set the revenue collection target at Rs5.1 trillion for FY21. Sources also claimed that the government will not be introducing any new taxes, however… Read More

Flexible budget & stiff austerity

The News June 11, 2020)

LAHORE: We need a team of capable analysts to prepare a flexible budget, keeping in view different possible scenarios resulting out of the novel coronavirus COVID-19 pandemic after all no government can perfectly forecast where the revenues and expenses be by the time the pandemic hits its peak. Our planners would have to think and plan rationally. We have seen 30 percent decline in revenues in… Read More

Ill-timed suggestions for the Budget

The Pakistan Today (June 10, 2020)

It’s that time again in Pakistan─ the time when it tallies its books, double-checks all its pockets and glances dismally at the plethora of ‘summaries’ received. It is Budget time in Pakistan. Pakistan is expected to announce the fiscal budget of FY 2020-2021 on June 12. While Pakistan has ignored, and will ignore, most requests, the ones coming from the IMF are hard to ignore… Read More

Japan MPs pass record coronavirus budget

The Pakistan Today (June 10, 2020)

TOKYO: Japan’s powerful lower house of parliament approved an emergency budget worth nearly $300 billion Wednesday, doubling the scale of measures to pep up the world’s third-biggest economy after the coronavirus tipped it into recession. Consumer spending has slowed to a crawl despite Japan’s relatively low infection numbers and death toll from the pandemic… Read More

Pakistan’s budget to target 2.3% growth after pandemic hit

The Reuters (June 09, 2020)

ISLAMABAD (Reuters) – Pakistan will target growth of 2.3% in fiscal year 2020-21, according to government officials and documents seen by Reuters that said the economic landscape would depend mainly on the country’s ability to control the coronavirus pandemic. ۔Prime Minister Imran Khan’s government is set to present its 2020-21 budget on Friday, in a parliamentary session that only 25%… Read More

Govt to raise Balochistan’s health budget

The Dawn (June 09, 2020)

QUETTA: Balochistan Chief Minister Jam Kamal Khan Alyani has said the government has decided to allocate major share of the next year’s budget to improve weaknesses in the health sector exposed by coronavirus. The CM said the government was making all-out efforts and utilising all available resources to reduce the impact of the deadly virus on the economy, health and other sectors… Read More

Tobacco sector lobbying for tax concessions in upcoming budget

The Pakistan Today (June 08, 2020)

LAHORE: As the federal budget approaches the tobacco sector has stepped up its efforts to lobby for tax concessions, amid an economic slump due to the Covid-19 pandemic. According to The All Pakistan Cigarette Manufacturers Association (APCMA), a proposal sent to the Federal Board of Revenue (FBR) Chairperson Nausheen Javed Amjad regarding an open discussion… Read More

Budget 2020: put the people first

The News (June 08, 2020)

There is nothing more important today than the lives of Pakistanis and survival of businesses. Helping them should be the clearly stated goal of the coming budget. Putting the effect of the Covid-19 pandemic behind us as soon as possible will enable the economy to recover quickly. At my Institute’s recent online seminar, I urged that the budget must send the signal of a government that cares… Read More

PTI’s budget blues

The Pakistan Today (June 07, 2020)

In May 2019 the technical teams of the government and the IMF reached an agreement on a $6 billion bailout package for Pakistan. According to PM’s Finance Adviser Abdul Hafeez Sheikh at the time, the government could not have bridged the financing gap of $12 billion on its own that he said was created by a weak economy. To get the bailout Pakistan had to agree to major conditions which Dr Shaikh saw as being… Read More

Budget, Economy, Statistics and Options for Pakistan

The Daily Times (June 07, 2020)

The government of Pakistan is discussing the possible budget for country. Although it is routine thing but this year it will not be usual business due to multiple factors. COVID-19 has hit world and it has changed dynamics of world economy. The factors of economy are adjusting to new normal. Governments have been stuck between “lockdown or no-lockdown” and they will have to decide between… Read More

Pakistan Textile Council submits budget proposals to govt

The Nation (June 06, 2020)

ISLAMABAD – Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh and his team at the Finance Division held a zoom meeting with the office bearers and members of the Pakistan Textile Council (PTC). During the meeting that was also attended by Minister for Industries and Production Mr. Hammad Azhar, Adviser to the Prime Minister on Commerce and Investment… Read More

KP plans deficit budget amid pandemic

The Dawn (June 06, 2020))

PESHAWAR: Covid-19 has taken a colossal toll on Khyber Pakhtunkhwa’s budget, accounting for a whopping Rs100 billion shortfall in revenues, forcing the government to do some belt-tightening to cope with the financial drop. Finance minister Taimur Saleem Khan Jhagra told a pre-budget briefing here on Friday that the pandemic had also taken a toll on financing development… Read More

Budget to be presented on 19th

The Dawn (June 06, 2020)

PESHAWAR: Provincial minister for labour and culture Shaukat Yousafzai on Friday said the annual budget for 2020-21 would be presented in the provincial assembly on June 19 while observing the standard operating procedures. The budget passage process would be completed on June 28. The treasury and opposition parties in the KP Assembly met on Friday to frame a… Read More

BUDGET 2020-21: APCC proposes Rs1.3tr development plan

The Express Tribune (June 05, 2020)

ISLAMABAD: The federal and four provincial governments have proposed Rs1.3 trillion for development spending in the next fiscal year, which is 18% less than the outgoing fiscal year’s original budget, underscoring the lack of fiscal space that will hamper economic growth. The scarcity of funds has exposed the discontent between the Centre and federating units as Balochistan chief minister staged a… Read More

Economic planning: Why Pakistan needs a humane budget

The News (June 05, 2020)

LAHORE: Next years’ budget requires not only the best economic planner, but a humane face as well that carves out optimum for the poor from the limited resources available in the country – a person capable of resisting political compromises. Does any member of the current economic team have the credentials anywhere near that description? All members of the economic… Read More

Labour body gives budget proposals to govt.

The News (June 04, 2020)

ISLAMABAD: Giving budget proposals to the government for the fiscal year 2020-21, the National Labour Federation (NLF) has demanded of Prime Minister Imran Khan to fix minimum monthly wages for workers at Rs30,000. “Minimum wage for unskilled worker and skilled worker may be fixed Rs30,000/- and Rs45000/- per month respectively, the NLF President.. Read More

Stocks end flat on profit-taking; budget in focus

The News (June 04, 2020)

Stocks inched down on Wednesday, as caution investors took some cash off the table in the run-up to the federal budget, due on next week, dealers said. “Market showed lacklustre performance as there was no key developments which could cheer the investors’ mood,” analyst Salman Ahmad at Aba Ali Habib said “Stable crude prices helped local E&P stocks to show minimal… Read More

Moot says budget must put people first

The Pakistan Today (June 04, 2020)

LAHORE: Pakistan had 60 million people unemployed even before the pandemic, while the current crisis has added an estimated 20 million more, said former finance minister Sartaj Aziz during an online conference held on Wednesday by the Institute for Policy Reforms. Aziz stressed the need for a comprehensive ‘Corona Revival Plan’, adding that the agriculture… Read More

Thoughts on the Budget 2020-21

The Nation (June 03, 2020)

As Pakistan’s moves towards its Fiscal Budget 2020-21, likely to perhaps be the most difficult since its inception, ironically the national economic management seems to be in complete disarray. An absence of economic leadership, lack of coordination amongst various ministries, no clear-cut vision or direction to take the economy forward and the sheer inability to proactively deal with… Read More

COVID-19: Budget sessions of national, provincial assemblies look doubtful

The Gulf News (June 03, 2020)

Islamabad: Ahead of the annual budget sessions, that take place in June every year, a large number of members of the national and provincial assemblies of Pakistan have tested positive for coronavirus. The federal government is now under pressure to make COVID-19 tests mandatory for all members of the assemblies, instead of the usual physical tests, to ensure passage of the annual… Read More

Budget 2020-21: IMF to be asked to slash FBR target from Rs5,103 bn to Rs4,800 bn

The News (June 02, 2020)

ISLAMABAD: While directing preparation of combating corona budget for 2020-21, Prime Minister Imran Khan has assigned Adviser to PM on Finance Dr Abdul Hafeez Shaikh for convincing the IMF for slashing down the FBR’s tax collection target from Rs5,103 billion to Rs4,800 billion for next fiscal year. The non-tax revenue collection target will be jacked up substantially so the additional resources of… Read More

Budget 2020-21 of Rs 7,600 billion to be presented on June 12

The Dunya News (June 01, 2020)

ISLAMABAD (Dunya News) – Federal budget for the year 2020-21 will be Rs 7,600 billion and it will be presented on June 12. According to details, the federal government of Pakistan Tehreek-e-Insaf (PTI) will present a new budget on the 12th of this month with a total volume of Rs. 7,600 billion. GDP growth rate target of 3% is being considered for the next financial year. According to the sources… Read More

Govt to offer sector-specific subsidies in upcoming budget

The Pakistan Today (June 01, 2020)

ISLAMABAD: The federal government has decided to offer subsidies only for “targeted sectors” in the next fiscal year, sources revealed on Monday. According to details, the government would refrain from giving broad-based subsidies in the next fiscal year, whereas it would target sectors such as housing, power, export and food security, for subsidies. Sources said that the government… Read More

A difficult budget
The Dawn (June 01, 2020)

AS the government prepares to present its second budget on June 12, its economic team is trying to push through the simplification of the tax regime, ease of doing business and Covid-19 response as cross-cutting themes. It would be a tough call indeed as every segment of the population — from government servants to the armed forces, from labourers to employers and from the poor to big businesses… Read More

Budget 2020: innovative taxation

The Daily Times (May 31, 2020)

A good tax system is one that raises money with minimal distortion to the economy. In Pakistan, oppressive, unfair and complex tax system is the main cause of many distortions in economy. Budget 2020, expected on June 12, 2020, is to address the daunting challenge of mitigating economic toll of Covid-19 pandemic. In these circumstances, the government must reverse the negative role… Read More

Stocks to see volatility; focus turns to budget

The News (May 31, 2020)

Stocks ended short week with scanty gains and plain volumes, a trend that dealers said was here to stay, along with range-bound trade, until the announcement of federal budget 2020-21 and the measures to bring the COVID-19 pandemic-hit economy back on feet in the new fiscal year. Pakistan Stock Exchange’s (PSX) KSE-100 shared index rose 0.28 percent or 95 points during the outgoing… Read More

PRGMEA calls for zero rated regime restoration in budget 2020-21

The Nation (May 31, 2020)

LAHORE – The Pakistan Readymade Garments Manufacturers & Exporters Association, in its budget proposals for 2020-21 submitted to the federal government, has called for restoration of zero rated regime of ‘no payment and no refund of sales tax’ for export-oriented sectors including textile at least for one year to sustain the industry amidst crucial liquidity crunch due to COVID-19… Read More

20% salary, pension raise likely for govt employees

The Pakistan Today (May 30, 2020)

The budget for financial year 2020-21 has good news for government employees who are expected to get a raise of 20 per cent in their basic salary despite numerous economic challenges and feeble economy in the wake of the coronavirus outbreak in the country, a private TV channel reported on Saturday. Advisor to Prime Minister on Finance Abdul Hafeez Sheikh will announce the budget… Read More

PM stresses financial discipline for economic stability

The Pakistan Today (May 29, 2020)

ISLAMABAD: Prime Minister Imran Khan on Friday emphasised upon the need to ensure financial discipline and continuation of institutional reforms in order to consolidate the process of economic stabilisation while simultaneously providing relief to the masses. He was chairing a meeting to review the state of the country’s economy. The meeting was attended by Foreign Minister Shah… Read More

Coronavirus is worsening global financial fragility, according to the IMF

The World Economic Forum (May 29, 2020)

Much the same way COVID-19 hits people with pre-existing health conditions more strongly, so is the pandemic-triggered economic crisis exposing and worsening financial vulnerabilities that have built up during a decade of extremely low rates and volatility. Our recently released chapters 2-4 of the Global Financial Stability Report focus on three potential weak spots: risky segments in… Read More