Budget Study Centre   Issue 74 Sep 03, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Over Rs538bn added to circular debt in FY20, Senate body told

The Pakistan Today (Sep 03, 2020)
ISLAMABAD: The Senate’s Standing Committee on Power was informed on Thursday that with an addition of over Rs538 billion during the last fiscal year (FY20), Pakistan’s total circular debt now stands at Rs2,150 billion. The committee meeting, which was held with Fida Muhammad in the chair, discussed the exact figures of circular debt, transparency in the recruitment... Read More
 

SBP reserves up $71.9m to 12.7bn

The Pakistan Today (Sep 03, 2020)
The central bank’s foreign exchange reserves increased 0.6pc on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On August 28, the SBP-held foreign currency reserves were recorded at $12,712.7 million, up $71.9 million compared with $12,640.8 million in the previous week. The central bank cited no reason for the rise in reserves. Overall, liquid foreign... Read More
 

UK won't cut foreign aid budget - Dominic Raab

The bbc.com (Sep 02, 2020)
The UK government remains committed to spending 0.7% of national income on foreign aid, Dominic Raab has said. The foreign secretary dismissed as "tittle tattle" reports that the £15bn aid budget could be cut to pay for more defence and intelligence spending. Press reports suggest Chancellor Rishi Sunak will cut aid spending to help pay off rising debts in his Autumn budget... Read More
 

KP finance deptt, SNG hold orientation session on budget

The Pakistan Observer (Sep 02, 2020)
Peshawar: The Khyber Pakhtunkhwa Finance Department organized an orientation session for members of the KP Assembly to enhance their understanding of public finance management, budget analysis and key challenges of budget 2020-21. The moot was organized in collaboration with the UK Foreign, Commonwealth and Development Office (FCDO) funded ... Read More
 

Fiscal deficit up Rs.214bn in 1H as pandemic hurts

The Dailymirror.IK (Aug 31, 2020)
Sri Lanka’s budget deficit for the first six months of 2020 expanded by Rs.214 billion in comparison to the same period in 2019 as the pandemic put a heavy damper on tax incomes as curfews imposed for nearly two months took a heavy toll on incomes of businesses and individuals. The Finance Ministry data recorded a budget deficit of Rs.735.7 billion for the six months compared... Read More
 

Fiscal deficit up Rs.214bn in 1H as pandemic hurts

The Dailymirror.IK (Aug 31, 2020)
Sri Lanka’s budget deficit for the first six months of 2020 expanded by Rs.214 billion in comparison to the same period in 2019 as the pandemic put a heavy damper on tax incomes as curfews imposed for nearly two months took a heavy toll on incomes of businesses and individuals. The Finance Ministry data recorded a budget deficit of Rs.735.7 billion for the six months compared... Read More
 

FBR surpasses July-Aug revenue target by Rs42bn

The Pakistan Today (Aug 31, 2020)
ISLAMABAD: With positive growth in revenue collection, the Federal Board of Revenue (FBR) has surpassed its collection target for the first two months (July and August) of the financial year 2020-21 (FY21), as the board collected Rs593 billion during the period under review against the target of Rs551 billion. According to official data shared by FBR, the revenue collection during the first two months of... Read More
 

County still seeking $500,000 in 2021 budget cuts

The Heraldbulletin.com (Aug 30, 2020)
ANDERSON — The Madison County Council still must reduce the proposed 2021 budget by approximately $550,000. The council on Thursday reduced the requested 2021 budgets to $37,048,000, according to County Auditor Rick Gardner. Gardner said the council voted to remove from the commissioners’ 2021 budget the salary for the county administrator and reduced the funding in... Read More
 

Exchange rate flexibility helps Pakistan in reducing external vulnerability: IIF

The Nation (Aug 29, 2020)
ISLAMABAD-The Institute of International Finance has said that the exchange rate flexibility in Pakistan was helping the country to reduce external vulnerability. The Washington-based global association of financial industry IIF, in its report “Pakistan: Commitment to Reform Faces a Test”, said Pakistan’s exchange rate was market-determined and had depreciated by 22pc in real effective terms... Read More
 

Cantonment boards yet to prepare annual budgets

The Dawn (Aug 29, 2020)
RAWALPINDI: The Rawalpindi and Chaklala cantonment boards have failed to prepare their annual budgets for 2020-21 even two months after the start of the new fiscal year. Moreover, both the cantonments did not hold any board meeting to approve building maps and administrative issues in the last four months. A senior official of the RCB told Dawn that a board meeting could not be held... Read More
 

Pakistan’s economy could grow 1.8 per cent in FY21, says IIF

The Pakistan Today (Aug 28, 2020)
LAHORE: A report released by International Institute of Finance (IIF) on Thursday said Pakistan’s economy could grow by 1.8 per cent in the ongoing fiscal year 2020-21 fueled by some recovery in private consumption. According to IIF, the coronavirus pandemic led to a contraction of 0.7 per cent in output during the last fiscal year 2019-20. It shared domestic demand fell by 2 per cent, whilst... Read More
 

PU Senate approves Rs9.39bn budget

The Dawn (Aug 28, 2020)
LAHORE: The Punjab University Senate on Thursday approved recommendation of the syndicate regarding Rs9.39 billion budget for the fiscal year 2020-21. Governor/Chancellor Chaudhry Sarwar had chaired the 355th meeting of the PU Senate through a video link and authorised Vice Chancellor Prof Dr Niaz Ahmad to conduct the meeting on... Read More
 

External debt and liabilities surge

The Express Tribune (Aug 27, 2020)
ISLAMABAD: Pakistan’s external debt and liabilities mushroomed to nearly $113 billion at the end of June this year, an addition of $17.6 billion or 18.5% in the past two years, reported the State Bank of Pakistan (SBP) on Wednesday. The external debt and liabilities - $112.8 billion to be precise - has been booked by both public and private sectors. However, 87% of the external debt and liabilities is the... Read More
 

External debt and liabilities surge

The Express Tribune (Aug 27, 2020)
ISLAMABAD: Pakistan’s external debt and liabilities mushroomed to nearly $113 billion at the end of June this year, an addition of $17.6 billion or 18.5% in the past two years, reported the State Bank of Pakistan (SBP) on Wednesday. The external debt and liabilities - $112.8 billion to be precise - has been booked by both public and private sectors. However, 87% of the external debt and liabilities is the... Read More
 

PHA board approves reduced budget for 2020

The Express Tribune (Aug 27, 2020)
FAISALABAD: The board of directors of the Parks and Horticulture Authority (PHA) has approved a budget of Rs845.38 million for the financial year 2020-21, allocating almost the entire amount for non-development expenditure. Only Rs25.9 million has been placed at the disposal of the director general for development expenses. The PHA is facing financial constraints due to the Covid-19... Read More
 

Taiwan will boost its 2021 defense budget by 10 percent

The Armyrecognition.com (Aug 26, 2020)
The Taiwanese Directorate General of Budget, Accounting and Statistics, said in a statement taht President Tsai Ing-wen's cabinet proposed T$453.4 billion ($15.42 billion) in military spending for the year starting in January 2021, versus T$411.3 billion budgeted for 2020. The modernization of Taiwan’s armed forces is considered as a hostile stance by mainland China, a situation « worsened » by the fact... Read More
 

Azerbaijan's Revised Budget Highlights Hit from Oil and Pandemic

The Fitchratings (Aug 26, 2020)
Fitch Ratings-London-26 August 2020: Azerbaijan's (BB+/Negative) revised 2020 budget highlights the hit to public finances from lower oil prices and the pandemic, Fitch Ratings says. The planned deficit has been raised to 12.4% of GDP from 2.3% in the original budget. An increase in the planned transfer from the sovereign wealth fund (SOFAZ) to the budget, should support the 1.7 AZN/USD... Read More
 

Pakistan's foreign loans jump to $1.8b in July

The Express Tribune (Aug 25, 2020)
ISLAMABAD: Pakistan received $1.8 billion in gross foreign loans in July - 263% higher than the same month of previous year - due to the premature repayment of $1 billion of Saudi Arabian cash assistance. “In the first month of fiscal year 2020-21, the government has received $800 million total external inflows from multiple financing sources,” reported the Ministry of Economic Affairs... Read More
 

‘Public debt management improved in PTI govt’s second year’

The Pakistan Today (Aug 24, 2020)
ISLAMABAD: Unlike the impression that the Pakistan Tehreek-e-Insaf (PTI)-led government has taken the country’s public debt to exorbitant levels during its first two years in power, the Ministry of Finance claims that public debt management indicators had, in fact, improved significantly during the second year of the incumbent government. Taking to Profit, Finance Division... Read More
 

KPK to look into Rp 90 billion from state budget allegedly spent on influencers

The Jakarta Post (Aug 24, 2020)
The Corruption Eradication Commission (KPK) said it would look into allegations that state funds of more than Rp 90 billion (US$6 million) were allocated to pay influencers to promote government policies on social media. “We will look closely to ensure whether such a budget exists or not,” KPK deputy chairman Nawawi Pomolango said on Sunday as quoted by Tempo. Nawawi added that the KPK... Read More
 

HMC Passes Budget For Fiscal Year 2020-21

The Urdupoint (Aug 24, 2020)
HYDERABAD, (APP - UrduPoint / Pakistan Point News - 24th Aug, 2020 ) :The outgoing elected representatives of Hyderabad Municipal Corporation (HMC) here Monday passed a Rs3.024 billion budget for fiscal 2020-21. Speaking on the occasion Mayor HMC Syed Tayyab Hussain deplored that the Sindh government did not pay heed to the financial requirements of the corporation... Read More
 

Economy on right track, says Imran as he reveals current account surplus of $424m in July

The Dawn (Aug 24, 2020)
Prime Minister Imran Khan on Monday said the country's current account balance had recorded a surplus of $424 million in July, signalling that the economy was "on the right track". Hailing the development in a message on Twitter, the premier noted that in July last year, Pakistan had a current account deficit (CAD) of $613 million while last month the deficit stood at $100m. He attributed the "strong... Read More
 

Ministries need more info to expedite budget execution

The Jakarta Post (Aug 24, 2020)
To address the impact of the COVID-19 pandemic, the government has increased the 2020 state budget to a total of Rp 2.73 quadrillion (US$188 billion), including Rp 695.2 trillion for economic recovery programs (PEN). However, although 45.7 percent of the budget had been disbursed as of July, spending in the PEN component remained quite low. The execution of the state budget starts with the enactment of... Read More
 

PM Imran lauds K-P govt on 65% increase in revenue generation

The Express Tribune (Aug 23, 2020)
ISLAMABAD: Prime Minister Imran Khan lauded on Saturday the Khyber-Pakhtunkhwa (K-P) government for increasing its revenue generation by 65 per cent despite the impact of Covid-19. In a Facebook post, the premier said that during the last financial year the K-P revenue authority increased their revenue generation by 65 per cent, adding that the growth in revenue surpassed all other revenue... Read More

Foreign direct investment up 88pc to $2.56bn in 2020 The Pakistan Today (Aug 23, 2020)

ISLAMABAD: Foreign Direct Investment (FDI) into the country increased by 88 per cent to $2.56 billion in 2020 from $1.36 billion in 2019, according to data released by the State Bank of Pakistan (SBP). The FDI improved from 2015 to 2018 and but then had a major fall in 2019 due to the depreciation of the rupee. However, it improved again in 2020 despite the economic slowdown brought about by the Covid-19... Read More

Pakistan’s public debt soars to Rs36.3tr The Express Tribune (Aug 21, 2020)

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government added Rs11.35 trillion in the public debt during the first two years in power, which was more than the total debt the previous government had taken in its five-year term. In a briefing to media, the spokesman of the Ministry of Finance said on Thursday that total public debt as of June 30, 2020, increased to Rs36.3 trillion or... Read More

KP govt reforms sports sector; a hefty sports budget allocated to the province The Pakistan Today (Aug 21, 2020)

PESHAWAR: The provincial government has embarked on an extensive reform strategy in the sports sector during the last two years to strengthen sports at the grass-root level, claim the officials of Khyber Pakhtunkhwa Directorate of sports, on Friday. The officials said that KP has allocated Rs26 billion in the fiscal budget to ensure the provision of stadiums and gymnasiums with appropriate facilities at ... Read More
 
Budget Study Centre   Issue 73 August 20, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PTI govt adds Rs11.3tr to public debt in two years

The Pakistan Today (Aug 20, 2020)
ISLAMABAD: Pakistan’s total public debt – domestic and external – was recorded at Rs36.3 trillion in the financial year 2019-20 (FY20), up 154pc (or Rs22 trillion) since FY13, when it was recorded at Rs14.3 trillion, an official document of the finance ministry revealed.  During the first two years in power, the PTI government increased the public debt by Rs11.3 trillion or 45.2pc. The same in FY18 was recorded... Read More
 

SBP reserves rise $139m to $12.6bn

The Pakistan Today (Aug 20, 2020)
KARACHI: The foreign exchange reserves held by the central bank increased $139.1 million or 1.12pc on a weekly basis, according to data released by the State Bank of Pakistan on Thursday. On Aug 13, the foreign currency reserves held by the SBP were recorded at $12,608.4 million, as compared to $12,469.3 million in the previous week. According to the central bank, the reserves increased mainly due to... Read More
 

Erratic economy

The News (Aug 19, 2020)
LAHORE: Pakistan’s economy is again behaving against the global trends. Pakistan’s growth was moving in reverse gear when the global economy was moving up; post pandemic the global economy is in tatters but Pakistan’s is showing signs of remarkable recovery. Pakistan’s macroeconomic indicators are in the best shape ever since this government assumed power. The exports are increasing... Read More
 

Brazilian lawmakers in showdown to double science budget

The Nature.com (Aug 19, 2020)
As Brazil reels from one of the largest COVID-19 outbreaks in the world — second only to the United States — a coalition of academic and business groups is fighting to secure more funding for research and industrial innovation in the country. The legislation that they are backing, which would more than double the core Brazilian science and innovation budget for 2020, sailed through the... Read More
 

Remittances hit monthly record high of $2.768b in July

The Nation (Aug 18, 2020)
ISLAMABAD-Inflow of foreign remittances was recorded at historic level of $2.768 billion in July this year, showing growth of 36.5 percent due to the measures taken by federal government and State Bank of Pakistan (SBP). Pakistan received foreign remittances worth $2.768 billion in July 20 as compared to $2.028 billion of remittances received in same month of previous year, showing an increase of 36.5 percent. This... Read More
 

Japan loses 7.8% in GDP to COVID-19 onslaught

The Nation (Aug 17, 2020)
Japan has lost at least 7.8% in its gross domestic products (GDP) to COVID-19, the latest financial figures reveal. The COVID-19 pandemic hit the country’s economy hard which contracted by 27.8% in the first quarter of the current fiscal – April-June, Yonhap news reported. GDP is the total value of goods and services produced in a country. It is the biggest contraction of Japan’s economy on... Read More
 

Budget and pandemic present challenges to Russia’s defense industrial base

The Defensenews.com (Aug 17, 2020)
The two Russian defense companies in this year’s Top 100 list — air defense missile systems manufacturer Almaz-Antey and weapons developer Tactical Missiles Corporation JSC — have again fallen in rank. Almaz-Antey has fallen to 17th place from 8th and 15th in 2018 and 2019 respectively. Similarly, Tactical Missiles Corporation JSC has fallen to 35th place from 25th and 32nd in 2018 and 2019... Read More
 

Govt’s non-tax revenues enhanced to Rs1.45 trillion in last fiscal year

The Nation (Aug 16, 2020)
ISLAMABAD             -        The government’s non-tax revenues had enhanced to Rs1.45 trillion in last fiscal year mainly due to the massive surplus profit of State Bank of Pakistan (SBP). The increase in non-tax revenues had helped the federal government in restricting budget deficit at Rs3.376 trillion in fiscal year ending June 30, 2020 or 8.1 pc of GDP.  The government had projected to... Read More
 

'PM Imran saved Rs2.3 trillion of poor people during past 2 years'

The Express Tribune (Aug 16, 2020)
ISLAMABAD: Federal Minister for Information and Broadcasting Senator Shibli Faraz on Sunday said that Prime Minister Imran Khan had saved Rs2344 billion of the poor people through his strategy and efforts during the last two years. This amount was more than Pakistan’s three years development budget, the minister wrote on his official Twitter handle... Read More
 

Govt asked to reduce tax rates, curtail parallel economy

The nation (Aug 16, 2020)
LAHORE          -        The business community has proposed the government to reduce tax rates and curtail parallel economy with a view to widen the tax base, as country’s tax-to-GDP ratio has dropped to a record low of almost 9% during 2019-2020 compared to 11.1% in 2017-2018, because of flawed tax policy measures. All Pakistan Business Forum President Syed Maaz Mahmood called for broadening... Read More
 

Centre transferred Rs2.5tr to provinces as share under NFC Award in last FY

The Nation (Aug 15, 2020)
ISLAMABAD-The federal government transferred Rs2.5 trillion to four provinces as their share under the National Finance Commission (NFC) Award in last fiscal year, falling short to the annual projections due to a steep shortfall in tax collection. jIn previous fiscal year, the share of provinces in the federal divisible pool was projected at Rs3.2tr, subject to the collection of Rs5.55tr in taxes by the Federal... Read More
 

FPRI BMB Russia: Russia’s federal budget deficit grew a whopping 85% in July

The Intellinews.com (Aug 14, 2020)
Russia’s federal budget deficit grew a whopping 85% in July compared to the previous month. In the first half of the year, Russia ran an RUB823bn deficit. In July the deficit increased by RUB699.2bn, bringing the total budget shortfall from January-July to RUB1.5 trillion rubles ($20.5bn). The cause of the deficit has less to do with dramatically increased spending by the Russian government... Read More
 

Wars not won by mere weapons: Ready for India despite budget constraints, says ISPR

The News (Aug 14, 2020)
RAWALPINDI: The Inter Services Public Relations (ISPR) Thursday termed Pakistan’s brotherly relations with Saudi Arabia historic and said nobody should raise questions about them. Commenting on the status of Pakistan’s relations with Saudi Arabia and the upcoming visit to the kingdom by the Army Chief General Qamar Javed Bajwa in a media briefing, Director General ISPR Major... Read More
 

Punjab, K-P book budget deficit

The Express Tribune (Aug 13, 2020)
ISLAMABAD: Punjab and Khyber-Pakhtunkhwa (K-P) booked budget deficits in the previous fiscal year amid questions over the federal government’s budget numbers, which showed an unprecedented Rs936-billion record profit by the central bank. Unlike, Punjab and K-P governments, the Pakistan Peoples Party-led government of Sindh and Balochistan Awami Party-led Balochistan... Read More
 

PTI govt restricts budget deficit to Rs3.4tr

The Express Tribune (Aug 12, 2020)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has managed to restrict overall budget deficit to below Rs3.4 trillion or 8.1% of the size of the economy in its second year in power due to steep cuts in expenditures and provincial cash surpluses. The budget deficit of 8.1% of the gross domestic product (GDP) was far better than the International Monetary Fund’s (IMF) forecast of Rs3.9... Read More
 

4pc of GDP should go to education, disrespectful material removed from syllabus: Senate committee

The Pakistan Today (Aug 12, 2020)
ISLAMABAD: The Senate Standing Committee on Education recommended that the education budget should be increased to four percent of the GDP for the promotion of education in the country, in a meeting held here on Tuesday. Senator Engr Rukhsana Zubair chaired the meetings of the senate committee, while the Federal Minister for Education could not attend because he was busy in the... Read More
 

Senate body recommends increasing education budget to 4 percent of GDP

The Business Recorder (Aug 12, 2020)
ISLAMABAD: The Senate Standing Committee on Federal Education, Vocational Training, National History and Literary Heritage recommended on Tuesday that the education budget should be increased to four percent of the GDP for the promotion of education in the country. The committee met under the chairmanship of Senator Engr Rukhsana Zubair. Regarding the non-participation... Read More
 

Government claims curtailing budget deficit at Rs 3,376 bn

The News (Aug 12, 2020)
ISLAMABAD: The government on Tuesday informed the Federal Cabinet that the budget deficit was curtailed at Rs3,376 billion, equivalent to 8.1 percent of GDP against projection of 9.1 percent of GDP for last fiscal year ended on June 30, 2020. In the wake of lingering COVID-19 pandemic, the overall fiscal woes continued to haunt the economic managers as the situation... Read More
 

Call for Senate’s meaningful role in budget-making process

The Dawn (Aug 11, 2020)
ISLAMABAD: A Senate panel on Monday called for empowering the upper house of parliament by giving it a meaningful role in the country’s budget-making process. The Senate Standing Committee on Law and Justice, headed by Javed Abbasi, in its meeting considered the Constitution (Amendment) Bill, 2020, (Amendment of Article 73), calling for... Read More
 

NA body approves “The Anti-Money Laundering (2nd Amendment) Bill, 2020”

The Nation (Aug 11, 2020)
ISLAMABAD-National Assembly Standing Committee on Finance and Revenue on Monday has approved the “The Anti-Money Laundering (Second Amendment) Bill, 2020” after rejecting the proposals of the opposition. The meeting of the National Assembly Standing Committee on Finance and Revenue was held under the chairmanship of MNA Mr. Faiz Ullah. The Committee discussed.... Read More
 

Services trade deficit shrinks 43pc in FY20

The Nation (Aug 10, 2020)
ISLAMABAD -The country’s services trade deficit witnessed sharp decline of 42.96 per cent during the financial year 2019-20 as compared to the corresponding period of last year. During the period under review, the country’s services exports declined by 8.66 per cent, whereas services’ imports narrowed by 24.25 per cent, according to trade statistics released by Pakistan... Read More
 

Sri Lanka official reserves increase to $7.1bn in July 2020

The bizenglish.adaderana.lk (Aug 10, 2020)
Sri Lanka’s gross official reserves grew by US$407.4 million to US$ 7,102.0 million in July 2020 from US$ 6,694.6 million in June 2020, latest Central Bank data showed. By the end of July, foreign currency reserves were 6,605.1 million dollars while the reserve position in the IMF was 67.6 million dollars. Reserves in Gold were 425.6 million and other reserve assets were one million US dollars... Read More
 

Budget deficit in first 5 months up as lockdowns hit revenue

The Daily Mirror.ik (Aug 10, 2020)
Sri Lanka’s budget deficit for the five months up to May rose as the economic shutdown triggered by the pandemic hit the tax revenues, but the government cut public investments to keep the deficit from over-stretching. Tax revenues during the first five months to May fell to Rs.508.3 billion from Rs.705.0 billion during the same period in 2019 as the economy lost momentum half way through... Read More
 

Asad says Pakistan’s economy witnessing V-shaped recovery

The Nation (Aug 09, 2020)
ISLAMABAD - Minister for Planning and Development Asad Umar said on Saturday that Moody’s reconfirmation of Pakistan’s credit rating with a stable outlook reflected that Pakistan’s economy was witnessing a V-shaped recovery amid COVID-19 pandemic. In the middle of a global pandemic it was a testimony to the V shaped recovery, Pakistan had seen, Umar said in his tweet. He said the economic... Read More

IMF programme in limbo as key targets remain unfulfilled The Pakistan Today (Aug 08, 2020)

ISLAMABAD: The International Monetary Fund (IMF) would review Pakistan’s performance under the Extended Fund Facility (EFF) in the last week of September. According to sources, the IMF team is scheduled to visit Pakistan to review the government’s economic performance during the first quarter of the current fiscal year (FY21), besides reviewing pending issues with... Read More

Pakistan’s exports may rise by up to $12bn by 2024: ITC The Pakistan Today (Aug 08, 2020)

ISLAMABAD: Although the country’s exports are expected to face the impact of Covid-19 in the current fiscal year, the International Trade Centre’s latest export potential assessment for Pakistan sees the country’s exports rising by up to $12 billion by 2024. “More than half of Pakistani exporters struggle with domestic and foreign regulatory barriers,” said Invisible Barriers to Trade... Read More

Software installed to keep Punjab Police’s Rs119b annual budget under check The Pakistan Today (Aug 07, 2020)

LAHORE: The finance wing of the Punjab Police presented comprehensive financial management software to stop corruption and embezzlement in the police accounts, on Thursday. The software is developed and installed with the assistance of the Punjab Information Technology Board (PITB). Its deployment is also the first of its kind in any state run department in Pakistan... Read More
 
Budget Study Centre   Issue 72 August 06, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

FY2019-20: Pakistan’s fiscal deficit narrows to 8.1pc of GDP

The Pakistan Today (Aug 06, 2020)
ISLAMABAD: Pakistan’s fiscal deficit shrunk to 8.1pc of Gross Domestic Product (GDP) during the fiscal year 2019-20. According to sources, the fiscal deficit was actually 8.1pc in June 2020 as compared to the revised estimates of 9.1pc published in the budget. This also included corona expenditures and if these expenditures were omitted, the deficit would have been 7.3pc of the GDP,... Read More
 

Pakistan approves most expensive China-aided project to date

The asia.nikkie.com (Aug 06, 2020)
ISLAMABAD (Reuters) -- Pakistan's top economic body on Wednesday approved its costliest project to date as part of the multibillion-dollar China-Pakistan Economic Corridor (CPEC) agreement, giving the go-ahead for a $6.8 billion project to upgrade its railway lines, the government said. CPEC has seen Beijing pledge over $60 billion for infrastructure projects in Pakistan, central to China's wider Belt... Read More
 

Exports increased by 5.80pc in July

The Nation (Aug 05, 2020)
ISLAMABAD-Pakistan’s exports increased by 5.80 percent in July 2020 as compared to the same month of last year. On the import side, a decline of 4.2pc, in dollar value terms, was recorded in July 2020 as compared to July 2019. This was disclosed during an internal strategy meeting chaired by advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood... Read More
 

Exports to Afghanistan down 25.46pc in FY2019-20

The Nation (Aug 05, 2020)
ISLAMABAD -Pakistan’s exports of goods and services to Afghanistan witnessed decrease of 25.46 percent during the fiscal year (2019-20) as compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported. The overall exports to Afghanistan were recorded at $888,913 million during July-June (2019-20) against exports of $1192,559 million during... Read More
 

After months of Covid-led downfall, Pakistan’s exports grow 5.8pc in July

The Pakistan Today (Aug 04, 2020)
ISLAMABAD: Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood on Tuesday chaired an internal strategy meeting at the commerce ministry to review the recent trade statistics and to devise plans for the enhancement of exports. As per the data shared by the commerce ministry, the country exported goods and services worth $1.998... Read More
 

President of Belarus says oil disputes with Russia cost budget $700 million

The Investing.com (Aug 04, 2020)
MINSK (Reuters) - Belarusian President Alexander Lukashenko said on Tuesday his country's budget had been deprived of 1.5 billion Belarusian roubles ($700 million) due to oil disputes with Russia. Relations between Minsk and traditional ally Russia are strained. The two countries earlier this year failed to agree an oil supply contract... Read More
 

EC asked to prepare budget for LG polls

The Dawn (Aug 04, 2020)
LAHORE: Chief Election Commissioner Sikandar Sultan Raja visited the Punjab Election Commission (PEC) here on Monday and discussed demarcation of constituencies for the forthcoming local government polls in the province. He also reviewed various hurdles in recruitment of staff for provincial and district offices of the entity, equal distribution... Read More
 

Export of transportation services falls 4.8pc to $758m

The Pakistan Today (Aug 03, 2020)
ISLAMABAD: Pakistan generated a revenue of $758.02 million by providing transportation services to different countries during the first 11 months (July-May) of the fiscal year 2019-20 (FY20). According to data issued by the Pakistan Bureau of Statistics (PBS), Pakistan’s earnings through the provision of transportation services suffered a decrease of 4.81pc during the period under review... Read More
 

Export of transportation services falls 4.8pc to $758m

The Pakistan Today (Aug 03, 2020)
ISLAMABAD: Pakistan generated a revenue of $758.02 million by providing transportation services to different countries during the first 11 months (July-May) of the fiscal year 2019-20 (FY20). According to data issued by the Pakistan Bureau of Statistics (PBS), Pakistan’s earnings through the provision of transportation services suffered a decrease of 4.81pc during the period under review... Read More
 

Philippines' Duterte approves 91.65 bln USD national budget proposal for 2021

The xinhuanet.com (Aug 02, 2020)
MANILA, Aug. 2 (Xinhua) -- Philippine President Rodrigo Duterte has approved the proposed 4.506-trillion-peso (roughly 91.65-billion-U.S. dollar) national budget for 2021, the Department of Budget and Management (DBM) said on Sunday. In a statement, the DBM said Duterte approved the budget during a special meeting with the Development Budget Coordination Committee (DBCC)... Read More
 

Germany provides 3 million Euros to Pakistan for skill development of returnee migrant workers

The Nation (Aug 01, 2020)
ISLAMABAD-The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) signed a Memorandum of Understanding (MoU) with the Overseas Pakistanis Foundation (OPF) to provide technical assistance amounting to three million Euros for re-integration of the returning migrant workers in society through their skill development. The MoU was signed by... Read More
 

Record 12.1pc collapse in Q2 eurozone GDP

The Nation (Aug 01, 2020)
Brussels-The European economy was hit by its sharpest recorded contraction in the second quarter, with GDP down 12.1 percent in the eurozone and 11.9 percent across the EU. The official Eurostat agency said that, with much of the economy paralysed by coronavirus lockdowns, the fall was “by far” the largest since it began recording the figure in 1995. “It is a shocking drop... Read More
 

FBR collects Rs300b revenue in first month of fiscal year 2020-21

The Nation (July 31, 2020)
ISLAMABAD -  Federal Board of Revenue (FBR) has collected Rs300 bil­lion in the first month (July) of the fiscal year of 2020-21.The FBR has released the revenue collection informa­tion of first month of current financial year, July 2020. Ac­cording to the released infor­mation, against the assigned revenue target of Rs.243 bil­lion, FBR has collected Rs.300 billion overshooting the target by a staggering... Read More
 

Financial constraints hindering development in KP

The Pakistan Today (July 30, 2020)
PESHAWAR: Work on several important developmental projects has come to a halt in Khyber Pakhtunkhwa (KP) as the provincial government had failed to release funds for the Annual Development Programme (ADP). Sources informed Profit that due to the Covid-led reduction in the federal and provincial revenue, the federal government could not release funds for developmental purposes... Read More
 

Govt obtained $10.6b in foreign loans in FY2019-20, including $3.373b commercial borrowings

The Pakistan Today (July 30, 2020)
ISLAMABAD: The government has obtained $10.6 billion foreign loans from multilateral and bilateral creditors during the financial year 2019-20. Out of this $10.6 billion, $3.373 billion were secured as foreign commercial borrowings, The News reported. The foreign commercial borrowing has become the second major source of getting foreign inflows as it constitutes 32 percent... Read More
 

Annual budget of LDA and subordinate agencies for FY21 approved

The Pakistan Today (July 30, 2020)
LAHORE: The governing body of Lahore Development Authority (LDA) on Thursday approved the annual budget of LDA and its subordinate agencies, Water and Sanitation Agency (WASA) and Traffic Engineering & Transport Planning Agency (TEPA), for the fiscal year 2020-21. Total resources of LDA (U.D Wing), WASA, and TEPA have been estimated as Rs58.61 billion out of which Rs32.45... Read More
 

Post-budget HEC

The Nation (July 29, 2020)
Budget 2020-21 was approved amidst the clamour of the opposition and the chaos of COVID-19. In these wretched times when the economy was faltering and the health system was choked due to an exponential increase in COVID-19 cases, a people-friendly budget wasn’t being anticipated. Among many subjects, the budget for higher education had also been a matter of extensive debate and... Read More
 

USF’s budget of Rs11,376m for FY2020-21 approved

The Nation (July 28, 2020)
ISLAMABAD-Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque chaired 39th meeting of the Universal Service Fund (USF) Policy Committee and gave approval for the USF’s annual budget of Rs 11,376 million for financial year 2020-21. The meeting approved the minutes of the 38th meeting of the Universal Service Fund Policy Committee and gave approval for the USF... Read More
 

Tobacco taxation can positively contribute to revenues for education budget

The Daily Times (July 27, 2020)
Society for Protection of Rights of the Child (SPARC) organized a briefing session on “raising taxes on tobacco products for revenue generation” at National Press Club Islamabad on Monday Sajjad Ahmed, Executive Director, SPARC said that Pakistan has not made much progress on its commitment of providing free and quality education to every child according to article 25-A of constitution... Read More
 

Russian Budget Lost Over $654Mln Because Of Tax Crimes - Investigative Committee

The Urdu Point (July 27, 2020)
MOSCOW (UrduPoint News / Sputnik - 27th July, 2020) Russia's budget has not received more than $654 million of tax Dollars because of tax crimes, Vice-Chairman of the Investigative Committee of the Russian Federation Yelena Leonenko told Sputnik. According to her, the law enforcement authorities have registered 3062 tax crimes within the first six months of 2020.... Read More
 

LDA allocates Rs 3b in new budget for construction of apartments

The Nation (July 26, 2020)
LAHORE - In line with the vision of Prime Minister of Pakistan Imran Khan for providing housing facilities to the low income groups, Lahore Development Authority (LDA) had allocated a sum of Rs 3 billion in the new budget for construction of apartments in Lahore Division.  Vice-Chairman Lahore Development Authority S.M.Imran informed this on Saturday. He told that LDA had... Read More
 

A disappointing budget

The Express Tribune (July 25, 2020)
While Pakistan remains fixated on developing its traditional systems, developed countries around the world are investing in industrialisation through information technology and artificial intelligence in order to strengthen their economics. The main reason behind the development of countries like China, the US and Korea is that they have focused more on human capital by... Read More
 

In FY20: Govt gets over $13b in foreign loans

The Express Tribune (July 25, 2020)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government took over $13 billion in foreign loans in the previous fiscal year - the second highest amount in history - to repay maturing external debt and cushion the shrinking foreign exchange reserves. During fiscal year 2019-20 that ended on June 30, the country received $13.2 billion worth of gross loans from bilateral and multilateral... Read More
 

HEC and post-budget scenario

The Daily Times (July 24, 2020)
The budget 2020-21 was approved amid clamor of opposition and chaos of covid-19. In these wretched times when the economy was faltering and the health system had choked due to an exponential increase in covid-19 patients, a people-friendly budget wasn’t being anticipated. Among many subjects, the budget for higher education had also been a matter of extensive debate and discussion... Read More

AJK Govt. Approves Revised Budget Estimates For Last Financial Year The Urdu Point (July 24, 2020)

MIRPUR AKK: (APP - UrduPoint / Pakistan Point News - 24th Jul, 2020 ) :AJK Government Friday approved the revised budget estimates for the last financial year amounting to over Rs.120 million out of which over Rs. 110 million spent to extend financial assistance to the deserving persons of the state, it was officially said. In a high level meeting of Zakat board, chaired by AJK Prime Minister Raja... Read More

KP awaits release of funds from federal govt for ADP 2020-21 The Pakistan Today (July 24, 2020)

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has not yet released the first tranche of the Annual Development Program (ADP) 2020-21 three weeks after the end of FY20 due to delay in release of funds by the federal government. According to sources in the KP Finance Department, the policy for the release of funds is usually formulated at the start of every new... Read More
 
Budget Study Centre   Issue 71 July 23, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

India must allow armed forces to raise own finances. Defence budget will never be enough

The Print (July 23, 2020)
Ever since the confrontation with China in the mountains of Ladakh, and the threat of escalation to war, retired armed forces officers have been calling for an increase in capabilities of their respective Services, and advocating new strategies to ward off an aggressive enemy. The Narendra Modi government reacted with the usual firefighting tactics by approving arms procurement worth $5.5... Read More
 

EU Parliament Begins Budget Debate

The voanews (July 23, 2020)
The European Parliament Thursday is considering the 27-nation bloc’s next long-term budget days after European Union leaders hammered out a massive COVID-19 economic recovery package for the region that included steep budget cuts to help pay for it. The budget, worth $1.2 trillion, was negotiated in tandem with a $868 billion economic recovery package that aims to help EU... Read More
 

Lawmakers Agree On Budget Plan After COVID-19 Costs

The 9&10 News (July 22, 2020)
After a long budget battle last summer, COVID-19 forced another one as tax revenue dropped and costs to fight the virus climbed. Thursday state lawmakers came to an agreement on how to balance the budget, already 10 months into the fiscal year. Every year with the state budget there’s going to be adjustments made as there’s always some inaccuracies on what was projected and what actually came to... Read More
 

Russia Signals Return to Fiscal Conservatism With Future Budget Cuts

The Moscow Times (July 21, 2020)
Russia’s Finance Ministry wants to cut government spending by up to 10% from next year in a bid to restore the state’s finances following the coronavirus pandemic. It has proposed cutting a total of $65 billion from the Russian budget over 2021-2023, Russian news outlet RBC has reported. Parts of the budget which are not ringfenced will see a fall in outlays of up to 10%, and defence spending could be cut... Read More
 

European Commission agrees to reduced space budget

The Space News (July 21, 2020)
WASHINGTON — The European Commission slashed its space budget for the next seven years, agreeing to a maximum of 13.2 billion ($15.2 billion) focused mainly on continuing the Galileo and Copernicus satellite programs.  The budget cut for space came as part of extensive four-day negotiations in Brussels over a 1.8-trillion-euro budget for the entire European Union designed in... Read More
 

To fight pandemic, Japan keeps fiscal tap wide open on budget spending requests

The Japantimes (July 21, 2020)
The government’s budget for next fiscal year won’t set a spending cap on requests aimed at fighting the COVID-19 pandemic, Finance Minister Taro Aso said, suggesting the heavily indebted nation would ramp up efforts to revive the coronavirus-battered economy. The government would ask ministries to keep requests for other spending in line with the current fiscal year’s initial... Read More
 

WSU provides update on budget reduction process

The News.wsu.edu (July 20, 2020)
Washington State University has announced key recommendations to help guide units throughout the WSU system through necessary budget reductions for the 2021 fiscal year. These recommendations come after an extensive hearing and review process involving department and university leaders, who are working... Read More
 

Deprived colleges get regular budget

The News (July 20, 2020)
Islamabad:For the first time, the Islamabad Model College for Boys (IMCB) Sihala and Islamabad Model College for Girls (IMCG) Bhara Kahu received regular budget for the fiscal year 2020-21. After creation of posts of teaching and non-teaching staff in May 2019, the budget IDs of both the colleges were created by Finance Division with a token amount of Rs2,000 in November 2019... Read More
 

Foreign direct investment surges 88pc to $2.56bn in FY20

The Pakistan Today (July 18, 2020)
KARACHI: Foreign direct investment (FDI) into the country increased 88pc to $2.56 billion in the fiscal year 2019-20, compared to $1.36 billion in FY19, according to data released by the State Bank of Pakistan (SBP). The FDI in the country has bounced back to FY18 levels, when it stood at $2.78 billion, before falling to... Read More
 

Pakistan's weird development pattern

The Express Tribune (July 18, 2020)
ISLAMABAD: Economic development generally follows the following pattern. At the initial stage, agriculture or the primary sector (farming, fishing, livestock and forestry) is the largest sector of the economy. As economic growth gains momentum, the relative share of industry or the secondary sector (manufacturing, mining and construction) in the gross domestic product (GDP) begins... Read More
 

Record Allocation Made In The Federal Budget 2020-21 For Health Sector:Asad Umar

The Urdupoint (July 18, 2020)
KARACHI, (APP - UrduPoint / Pakistan Point News - 18th Jul, 2020 ) :Federal Minister for Planning and Development Asad Umar on Saturday said that the federal government would fully support Karachi, the biggest city of Pakistan as record amount is allocated for health sector in the federal's budget for fiscal year 2020-21. The minister said that efforts are being made across the country in... Read More
 

The Senate Standing committee of IT is concerned over budget-cut in HEC funding

The Techjuice.com (July 17, 2020)
The Senate Standing Committee for Information and Technology have risen concerned regarding the budget cut for the Higher Education and Commission and demanded a raise in the allocated funds. The committee has chaired a meeting with Senator Rubina Khalid at the Higher Education Commission Secretariat. In the meeting, the connectivity issues that pupils are... Read More
 

27pc contraction in trade deficit helped Pakistan save $8.6bn in FY20: PBF

The Pakistan Today (July 16, 2020)
ISLAMABAD: The Pakistan Businesses Forum (PBF) said on Thursday that the return of normalcy after the Covid-19 lockdown and the gradual reopening of businesses around the globe has had a positive impacted Pakistan’s balance of trade. “Pakistan saved $8.6 billion as trade loss shrank 27pc in the fiscal year 2019-20,” the forum informed in a statement issued on Thursday... Read More
 

Ehsaas Emergency Cash Program budget increased to Rs203 billion

The Daily Pakistan (July 16, 2020)
ISLAMABAD - Special Assistant to the Prime Minister on Social Protection and Poverty Alleviation, Dr Sania Nishtar Thursday said the scope of emergency cash programme has been expanded to reach out to around 16.9 million deserving families with the increased budget of Rs203 billion. Initially, the programme was launched on April 9, 2020, with a budget of Rs144 billion for 12 million... Read More
 

Distt Council Present Annual Budget For FY 2020-21

The Urdu Point (July 15, 2020)
NAUSHEHROFEROZE, (APP - UrduPoint / Pakistan Point News - 15th Jul, 2020 ) :The District council Nausheroferoze presented the annual Budget for the fiscal year 2020-21. Chairman District council Abdul Sattar Abassi presented the budget in a special session held here on Tuesday.In his budget speech Chairman said that Revenue target had been set for new fiscal year 2020-21 to Rs... Read More
 

Pakistan receives record $23.1 billion remittances

The KhaleejTimes (July 15, 2020)
Pakistan recorded 6.4 per cent increase in remittances that hit an all-time high mark of $23.12 billion (Dh84.85 billion) during the financial year 2019-20, the latest data shows. Analysts and experts said a steady growth in remittances to Pakistan will continue despite the worldwide economic slowdown and overseas Pakistanis may send $25 billion (Dh91.75 billion) in the present fiscal... Read More
 

Pakistan’s Military Spending and Defence Budget 2020-21

The Modern Diplomacy (July 14, 2020)
Last month the federal government of Pakistan announced its annual budget 2020-21 according to which Rs.1, 289 billion has been allotted to the defence sector. The defence budget has increased by 11.9% in the fiscal year 2020-21. However, if compared with the 2019-20 revised spending, which was Rs.1, 227 billion, the growth would be 5%. The increasing tensions between India and Pakistan... Read More
 

Rawalpindi Development Authority approves Rs3.52bn annual budget

The Dawn (July 13, 2020)
RAWALPINDI: The governing body of Rawalpindi Development Authority (RDA) on Friday approved Rs3.520 billion annual budget of the RDA and a Rs2.059bn budget of Wasa. The 48th meeting of the governing body was held with RDA Chairman Tariq Mehmood Murtaza in the chair. RDA Director General Amara Khan presented the budget for the fiscal year 2010-21 which was approved... Read More
 

Positive Aspects of New Federal Budget

The Daily Times (July 13, 2020)
There is no denying the bitter fact that the federal budget for financial year 2020-21, which has already commenced since July 01,2020, was formulated in a very unusual and difficult circumstances and conditions caused by pandemic of COVID-19 attack on Pakistan like large number of countries around the world one after the other. Every thing was going in the right direction... Read More
 

Pakistan likely to ease regulatory curbs to boost economy

The Express Tribune (July 12, 2020)
ISLAMABAD: Prime Minister Imran Khan on Saturday approved, in principle, a set of recommendations to tap the potential of neglected sectors of the economy by lowering regulatory restrictions and digitising the economy. Over 60 recommendations in eight areas of the economy have been finalised by an economic think-tank, with representation from both the government and the private sector.... Read More
 

Pakistan likely to ease regulatory curbs to boost economy

The Express Tribune (July 12, 2020)
ISLAMABAD: Prime Minister Imran Khan on Saturday approved, in principle, a set of recommendations to tap the potential of neglected sectors of the economy by lowering regulatory restrictions and digitising the economy. Over 60 recommendations in eight areas of the economy have been finalised by an economic think-tank, with representation from both the government and the private sector... Read More
 

IMF predicts recovery in Pakistan’s economy during 2021

The Daily Times (July 11, 2020)
In a report titled “Policy Actions Taken by Countries,” IMF said a gradual recovery is expected in Pakistan’s economy in Fiscal Year 2021 as the economy reopens. The report highlighted the measures taken by the present government to contain spread of COVID-19. According to this report, since mid-April, the federal government, in coordination with the provinces, has been gradually... Read More
 

Inclusive budgeting

The News (July 11, 2020)
Now that the budget season is over, and reams have been written on how good or bad the federal or provincial budgets have been, it would be good to review how strategic planning and inclusive budget-making processes makes for better service delivery. Sometimes in the times of sensationalized news, thrill laden talk shows and social media scandals, the good news is lost... Read More
 

Govt decides not to allocate any token supplementary grant in current FY

The Nation (July 10, 2020)
ISLAMABAD: The government has decided that no token supplementary grant would be granted, as the federal cabinet, the National Assembly especially, the Public Accounts Committee have directed to discourage supplementary grant unless extremely critical. The ministry of finance has issued notification regarding supplementary grants. The government has decided that no token... Read More

Positive aspects of new federal budget The Pakistan Today (July 10, 2020)

There is no denying the that the federal budget for financial year 2020-21, which has already commenced on July 1 was formulated in the very unusual and difficult circumstances and conditions caused by the covid-19 pandemic which affected Pakistan as it did to countries around the world one after the other. Everything was going in the right direction, following the bold and necessary policy... Read More
 
Budget Study Centre   Issue 70 July 09, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

China's debt trap increases amid budget deficit, BRI roadblock

The Wionews (July 09, 2020)
China’s boom has been powered by debt as the Communist Party began chasing superpower status with a credit card and the world knows when you buy something with a credit card, you are spending money that you don’t really have and one day you will have to return it.  The Communist Party has set ambitious targets for itself. It wants to dominate this century and wants to be the ultimate... Read More
 

Another VoA likely with Budget for 2021 in Nov.

The Daily FT (July 09, 2020)
Once Parliament is convened in August, the Government is likely to bring a Vote on Account (VoA) to cover public finances for the rest of 2020, its third for the year, and then present a Budget for 2021 in November, the Sri Lanka Podujana Peramuna (SLPP) said yesterday.  Speaking to reporters at the SLPP Head Office, National Organiser Basil Rajapaksa said that they were planning to present a VoA for this... Read More
 

Japanese protection service to sell off military gear to boost budget

The Nation (July 08, 2020)
"Back Serve Taro Aso told us to think around how to extend the budget, and I trust that within the future we'll be able to induce stores for at slightest one F-35 warrior fly. All stores will go to the state treasury, but I think that the endeavors of the resistance service will be taken under consideration amid the [allotment] of the budget," Kono said, as cited by the NHK broadcaster... Read More
 

Budget deficit in first four months expands to 2.9%

The Daily Mirror (July 08, 2020)
Sri Lanka’s budget deficit for January through April expanded to 2.9 percent of gross domestic product (GDP), from 2.3 percent in the corresponding period, last year, as the coronavirus lockdowns sapped the tax revenues while the government had to step up spending on containing the virus and keeping the essential services up and running. However, the government... Read More
 

Pakistan on brink of Covid-19 financial collapse

The Asia Times (July 07, 2020)
PESHAWAR – Pakistan’s financial woes are going from bad to worse as the national fiscal deficit surges to over 7% of gross domestic product (GDP) and could breach 9-10% as state revenues dry up amid Covid-19 economic devastation. That’s raising questions among analysts and business executives of whether the country is headed towards a budgetary blowout-induced financial collapse... Read More
 

Sri Lanka says making progress with IMF program, budget support

The Economy Next (July 07, 2020)
ECONOMYNEXT – Sri Lanka is making progress with a program with the International Monetary Fund with other lenders also joining in with budget support, Treasury Secretary S R Attygalle said. Other lenders would also provide more than a billion US dollars in budget finance along with the IMF program, Attygalle said. Sri Lanka has lined up funding from a number of lenders including 300... Read More
 

IUB syndicate approves Rs5.38b budget

The Pakistan Observer (July 06, 2020)
Bahawalpur: The Syndicate of the Islamia University of Bahawalpur has approved budget of estimated Rs. 5387.983 million for the financial year 2020-21 besides giving node to re-structural plan to enhance number of faculties and teaching departments. According to the spokesman of the university Shahzad Ahmad Khalid, the 74th meeting of the syndicate held under the... Read More
 

Budget and development priorities

The Express Tribune (July 05, 2020)
ISLAMABAD: According to the theoretical knowledge of economic planning, fiscal budget is a short-run economic plan of revenues and expenditures of a nation. It paves the way for mid-term targets and long-run economic plan of the country. The objectives and goals of the long-run economic plan are dissected into mid-term and short-term economic plans. The fiscal budget is, therefore... Read More
 

Reading between the lines

The Express Tribune (July 05, 2020)
ISLAMABAD: In his budget speech in the National Assembly, Federal Minister for Industries Hammad Azhar stated that the expected recession due to Covid-19 called for an expansionary fiscal policy. Having said that, he went on to present the budget with total federal expenditures of Rs7,137 billion against the revised budget estimate of Rs8,345.3 billion in the previous fiscal year... Read More
 

Over Rs 5 billion allocated for health facilities in budget: mayor

The Business Recorder (July 05, 2020)
KARACHI: Mayor Karachi Wasim Akhtar on Sunday said that over Rs5 billion has been earmarked in the new fiscal year's budget 2020-21 for provision of better health and medical facilities to the people of Karachi. He said coronavirus testing facility at Abbasi Shaheed Hospital has increased the people's confidence in Karachi Metropolitan Corporation. We are trying to expand facilities at Karachi... Read More
 

$6 bn IMF programme: Govt needs to do electricity, gas tariff adjustments

The News (July 04, 2020)
ISLAMABAD: Even after approval of the budget for 2020-21 from Parliament, the IMF sponsored programme of $6 billion for Pakistan hangs in balance where Islamabad will have to comply with tariff adjustments on electricity and gas as well as to undertake reform path to evolve staff level agreement on completion of second review. The IMF programme has literally been stalled at the moment and ... Read More
 

Budget Satisfaction

The Nation (July 04, 2020)
It has not been a good financial year. The coronavirus epidemic has taken a large toll on the economy, not only with the lockdown and the drop in consumer purchasing power, but also with regards to the funds that the government has had to allocate to combat the pandemic. Perhaps even more disastrously, the swarm of locust attacking crops in the country has posed a great threat to... Read More
 

Pakistani exporters fear tax refunds will remain stuck in FY21

The Express Tribune (July 03, 2020)
KARACHI: Textile exporters have voiced fear the government will not be able to release the stuck sales tax refund claims in the new fiscal year as well because billions of rupees worth of exporters’ liquidity is still lying with the government, which has not been released earlier. “Textile exporters are deliberating whether to continue operating the industrial units or close them down permanently,”... Read More
 

Asad credits treasury, Opp for smooth budget passage

The News (July 03, 2020)
ISLAMABAD: Speaker National Assembly Asad Qaiser Thursday said maximum opportunity was given to the members to take part in the general debate and other processes involved in passage of budget 2020-21. “As many as 107 members from the treasury and 101 members from the opposition took part in the general discussion on the budget,” he said while talking to Adviser to the Prime... Read More
 

East, Korangi and West DMCs approve budgets

The Express Tribune (July 02, 2020)
KARACHI: The East, West and Korangi district municipal corporations (DMCs) presented the budgets for the fiscal year 2020-21 on Wednesday. Korangi Korangi DMC chairperson Syed Nayyar Raza and Korangi DMC vice-chairperson Syed Ahmer Ali presented the budget, with an outlay of Rs4.39 billion and targeting a surplus of Rs915,847, during a council meeting... Read More
 

Tax free budget to address economic woes of common man: NA speaker

The Dunyanews (July 02, 2020)
ISLAMABAD (Dunya News) - Advisor to the Prime Minister Dr Zaheer uddin Babar Awan called on National Assembly Speaker Asad Qaiser in the Parliament House and discussed various issues encompassing parliamentary business and smooth conduct of budget session of the National Assembly. Parliamentary business to be taken up in the forthcoming session of the National Assembly was... Read More
 

Budget approval

The Express Tribune (July 01, 2020)
That the federal budget has been passed by the National Assembly is no news. If there is anything that came out as news from the assembly’s budget session on Monday, it is the score line. The government managed 160 votes against the opposition’s 119 at the time of passage of clause nine of the Finance Bill 2020-21. And the same turned out to be the final score, as the opposition — having been defeated... Read More
 

WB approves $500m loan for Pakistan’s budget support

The Dawn (July 01, 2020)
ISLAMABAD: The World Bank (WB) on Tuesday announced that it has approved another $500 million loan to Pakistan for the country’s budget support following its increased expenditures on Covid-19 crisis response. In a statement, the bank said its board of directors approved the financing for the Resilient Institutions for Sustainable Economy (RISE) programme to help Pakistan strengthen fiscal... Read More
 

Budget 2020-21 sails through NA

The News (June 30, 2020)
ISLAMABAD: The National Assembly (NA) on Monday passed the Finance Bill 2020 with a total outlay of Rs7,294.9 billion amid sloganeering and protest from the opposition giving legal effect to the budgetary proposals for next fiscal year. The amendments proposed by the opposition in the Finance Bill, 2020 were rejected by the House. The government also shattered hopes of... Read More
 

Govt succeeds in passing FY21 budget amid Opp’s protests

The Pakistan Today (June 30, 2020)
ISLAMABAD: After a long and noisy debate on the proposed Finance Bill for the fiscal year 2020-2021 on Monday, the National Assembly gave its nod to the federal budget which the Pakistan Tehreek-e-Insaf (PTI) government has been touting as “tax-free”. 160 MPs voted in favour of the bill while 119 opposed it. The government had unveiled a coronavirus-influenced Rs 7.13 trillion “tax-free” budget for the.... Read More
 

Budget to sail through NA however hard Opp may try

The News (June 29, 2020)
ISLAMABAD: Budget 2020-2021 will sail through the National Assembly no matter how hard the combined opposition may try, said Federal Minister for Information and Broadcasting Senator Shibli Faraz here on Sunday. He was speaking at a news conference here along with Minister for Industries and Production Hammad Azhar. Shibli said the PPP and PML-N both were responsible for the... Read More
 

Defence budget - Part II

The News (June 28, 2020)
Why are ‘military pensions’ of Rs359 billion not included in the ‘defence budget’? Answer: Generally accepted accounting principles (GAAP) are a “common set of accounting principles, standards and procedures.” If I am not mistaken, it was Shaukat Aziz who applied GAAP and moved ‘military pensions’ out of the ‘defence budget’. Legally, military retirees are part of the civilian ‘labour force’... Read More
 

Most disappointing aspect of budget 2020

The Daily Times (June 28, 2020)
The federal government led by Pakistan Tehreek-e-Insaf (PTI) presented the fiscal budget for 2020-21 in the National Assembly. Since the entire world is facing an uncertain period due to the Covid-19 pandemic, nothing extraordinary was expected from the budget. However, it was expected by many that the government would allocate a greater share of the budget toward education and health care... Read More
 

Amid pandemic: ‘Govt committed to stimulating economy’

The Express Tribune (June 27, 2020)
ISLAMABAD:The government is taking various initiatives to stimulate the economy in these difficult and uncertain times, said Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh on Friday. In a meeting with Chinese Ambassador to Pakistan Yao Jing, the adviser discussed several matters of mutual interest. Shaikh appreciated the continued and unwavering support that China had... Read More

KMC to present Rs24.84b budget Monday The Samaa.tv (June 27, 2020)

The Karachi Metropolitan Corporation is all set to present a Rs24.84 billion budget for fiscal year 2020-21 on Monday. It will be presented by Karachi Mayor Wasim Akhtar at the Council Hall of the Old KMC Building. This will be the last budget of his tenure. The session will start at 2:30pm. He has presented four budgets since he became mayor in August, 2016. The fiscal budget figure for this year... Read More

How is federal budget a success story, and not the other way round?

The globalvillagespace.com (June 26, 2020)
Pakistan’s economy had already been suffering before the COVID-19 outbreak, it was in no imminent danger of a recession. The Current Account Deficit dropped by nearly 73%; the “primary balance” was positive, at 0.3% of the GDP; the credit rating had improved from negative to stable; and the country’s rank on the “Ease of Doing Business” Index had improved from 136 to 108. Many analysts... Read More

Bilawal, Shehbaz reject FY21 budget, agree on calling APC next week

The Pakistan Today (June 26, 2020)
ISLAMABAD/LAHORE: Pakistan People’s Party (PPP) Chairman Bilawal Bhutto-Zardari and Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif rejected the budget presented by the government for the fiscal year 2020-21, and agreed to call an All Parties Conference (APC) next week in light of the evolving political situation in the country. Bilawal telephoned the former... Read More

Opposition rejects Balochistan budget, terms it anti-people

The Dawn by Saleem Shahid (June 26, 2020)
QUETTA: The opposition in the Balochistan Assembly on Thursday rejected the provincial budget for financial year 2020-21 and termed it anti-people. Members on treasury benches, however, said that despite a financial crisis in the country and other difficulties the provincial government had presented what they called a people-friendly budget. The Balochistan Assembly session was presided... Read More
 
Budget Study Centre   Issue 69 June 25, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PA passes resolution to extend Ord during budget session

The News (June 25, 2020)
LAHORE: The successful parliamentary strategy of Punjab Minister for Law Parliamentary Affairs Raja Basharat saved the Punjab Health Department on Wednesday from a legal crisis. The previously enacted Punjab Infections and Diseases Prevention and Control Ordinance 2020 was coming to an end. In the running session of the Punjab Assembly, Raja Basharat presented... Read More
 

Economic Crisis in Pakistan: 2020-21 Handmade Budget of IMF

The moderndiplomacy.eu (June 25, 2020)
Coronavirus (COVID-19) is one of the most dangerous and disaster able virus in the world during contemporary times, which has been affecting most of the developed and developing countries. Although having all equipment’s to Europe and USA. But, has losing its battle to control on this coronavirus. When it is stretched in Wuhan, China and the whole world was in frivolous behavior toward... Read More
 

KP’s budget deficit likely to persist in FY22, FY23

The Pakistan Today (June 24, 2020)
Peshawar: The Khyber Pakhtunkhwa (KP) Finance Department has forecasted that the budgets for FY22 and FY23 will see deficits of Rs72 billion and Rs63 billion respectively.  For FY22, the KP government is expected to earn Rs871.70 billion in revenues. The KP Finance Department estimates the provinces expenditures at Rs 944.80 billion for FY22, leading to a budget deficit of Rs72.29 billion... Read More
 

Budget and CPEC

The Nation (June 24, 2020)
Concerns over Pakistan’s national budget are high at the time, as Pakistan’s growth rate has been declining for the past two years and its effects are being felt to a large extent in the lives of ordinary people. Apart from this, the coronavirus has also caused a strange calamity not only for Pakistan but the whole world, which it has never faced before. The epidemic of coronavirus is affecting the socio... Read More
 

US says Pakistan budget lacked transparency

The Express Tribune (June 23, 2020)
ISLAMABAD: A new report by the United States has said that Pakistan’s budget lacked minimum fiscal transparency and it also did not adequately disclose all debt information amid a sharp surge in government’s contingent liabilities in outgoing fiscal year. The 2020 Fiscal Transparency Report by the State Department comes amid 21.5% increase in sovereign guarantees during first nine months... Read More
 

Defence Budget

The News (June 23, 2020)
Myth number 1: The defence budget eats up the lion’s share of our total budgetary expenses. Not true. In Budget 2020-21, ‘Defense Affairs and Services’ has been allocated Rs1,289 billion out of total budgetary expenses of Rs7,295 billion. What this means is that defence comprises 17.67 percent of the total expenses and 82.33 percent of all government expenses are non-defence related... Read More
 

Economists point out myths and facts about Pakistan’s defence budget

The Pakistan Today (June 23, 2020)
LAHORE: Amid Leading economists of Pakistan have pointed out a number of myths and facts about Pakistan’s defence budget. Farrukh Saleem, an economist and financial analyst, said that the first myth is that the defence budget eats up the lion’s share of the country’s total budgetary expenses. “In budget 2020-21, ‘Defence Affairs and Services’ has been allocated Rs1,289 billion out of the... Read More
 

Budget focuses on provision of relief to poor, say treasury lawmakers

The Pakistan Today (June 22, 2020)
ISLAMABAD: Government lawmakers told the National Assembly (NA) on Monday that the budget for the fiscal year 2020-21 was focused on providing relief to the poor and deserving people of the country. Participating in the budget debate, Raja Kurram Nawaz said that adequate funds were earmarked in the federal budget for the poor and deserving people as was evident from Ehsaas Programme... Read More
 

Pakistan increases country’s defence budget despite economic fallout amidst COVID-19

The Newdelhitimes (June 22, 2020)
The government of Pakistan has announced a 2020-21 defence budget of PKR1.29 trillion (USD7.81 billion). According to budgetary documents the new allocation represents a 12% increase over the original defence budget for 2019-20 and a 5% increase over the revised expenditure for that year. According to reports in Pakistani media, the budget document shows that the defence... Read More
 

Why we do not cover the budget

The Pakistan Today (June 21, 2020)
If you are a consumer of news in Pakistan, you may be vaguely familiar with the idea that the day the federal government announces its budget is one of the biggest economic stories of the year. We at Profit, as a leading business publication in the country, may well be expected to cover it. But we do not, and the decision not to do so is no accident, but a deliberate one on our part... Read More
 

Opposition lambasts Sindh budget

The Express Tribune (June 21, 2020)
KARACHI: Terming the new provincial budget a ‘jugglery of words,’ opposition members in the Sindh Assembly lashed out at the Sindh government for its failure to mobilise development funds and complete vital schemes in the province on Saturday.At the first assembly session after the budget’s presentation, Muttahida Qaumi Movement-Pakistan’s Rashid Khilji dismissed... Read More
 

Rs 500 million allocated for agriculture in budget

The App.com (June 20, 2020)
QUETTA, Jun 20 (APP):Balochistan Minister for Finance Zahoor Buledi Saturday said Rs 500 million had been allocated for agriculture sector in the financial budget year-2020-21 which was Rs 404 million in budget of 2019-20. He said 181 teams had been formulated to prevent the attack of locust across the province through carrying anti-spray in the areas in order to ... Read More
 

Defence budget increased to address food security: Hafeez Shaikh

The Pakistan Today (June 20, 2020)
ISLAMABAD – Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said that the defence budget has been addressed in order to tackle the upcoming food security challenges. He also lauded the provinces for making their budgets on the basis of their own estimates of the security challenges instead of relying on the forecasting done by the federal government, even though defence is a federal subject... Read More
 

BUDGET 2020-21: Rs923bn KP budget focuses on health, tax relief

The Dawn (June 20, 2020)
PESHAWAR: The Khyber Pakhtunkhwa government on Friday unveiled the Rs923 billion budget for the financial year 2020-21 which focuses on improvement in the health sector and tax relief for businesses hit hard by the Covid-19 pandemic. KP Minister for Finance Taimur Saleem Jhagra presented the budget in the provincial assembly. He told Dawn that fundamentally the biggest challenge... Read More
 

Fitch says Pakistan’s budget goal overly ambitious

The News (June 20, 2020)
KARACHI: Global credit rating agency Fitch Ratings said Pakistan fiscal targets for the next fiscal year will be challenging to meet amid the economic shock and health crisis associated with the coronavirus pandemic. “Public finances are a key credit weakness, as we noted even before the health crisis took hold when we affirmed Pakistan’s rating at ‘B-’ with a stable outlook in January 2020,” Fitch... Read More
 

AJK unveils Rs139.5 billion balanced budget

The Express Tribune (June 19, 2020)
Azad Jammu and Kashmir (AJK) government on Thursday announced a Rs139.5 billion balanced budget for the next fiscal year 2020-21 with a development outlay of Rs24.5 billion. Minister for Health and Finance Dr Najeeb Naqi presented the budget and the revised estimates for current fiscal year in the legislative Assembly session being held under strict standard operating... Read More
 

K-P unveils Rs923b tax-free budget

The Express Tribune (June 19, 2020)
PESHAWAR: The Khyber-Pakhtunkhwa (K-P) government on Friday unveiled a balanced and tax-free budget of Rs923 billion for the next fiscal year 2020-21 with special focus on reviving the economy crippled by the Covid-19 pandemic and protecting investment in service deliveries, particularly the health sector. Finance Minister Taimur Saleem Jhagra.. Read More
 

Pakistan slashes budget for Belt and Road Initiative projects

The asia.nikkei.com (June 19, 2020)
KARACHI -- Pakistan has chopped a third of its contribution to the China-Pakistan Economic Corridor (CPEC), a high profile component of China's massive Belt and Road Initiative, setting back some flagship projects backed by China's President Xi Jinping. With the economic damage caused by the COVID-19 pandemic still being tallied, the annual CPEC allocation has been reduced from $241... Read More
 

An ordinary budget

The News (June 19, 2020)
Extraordinary situations demand extraordinary responses. We are facing an extraordinary situation due to the Covid-19 pandemic, the current economic crisis and the locust attacks. The government has to fight on three different fronts. Covid-19 led to an unprecedented public health crisis and aggravated the already existing economic crisis. Even though the government denies the... Read More
 

Not quite a corona budget

The Pakistan Today (June 18, 2020)
It was one of the paradoxes of the 2020-2021 Budget that the man responsible for it, PM’s Finance Adviser Dr Hafeez Sheikh, did not seem to believe the revenue collection figure of Rs 4.91 trillion would be met. At the traditional post-Budget press conference, he said the provinces were free to decide whether or not to follow the revenue collection figure in their own Budgets, depending on how much they... Read More
 

Covid-19 prompts over 16pc increase in provincial health budget

The Dawn (June 18, 2020)
KARACHI: In a bid to meet the challenge of Covid-19 in the province, the Sindh government has increased the allocation for the health sector by 16.1 per cent — from Rs114.4 billion to Rs132.88bn — in the provincial budget for financial year 2020-21. In addition to Rs132.88bn, Rs7bn has been allocated for nine vertical programmes, including polio control, AIDS, TB, thus making the total... Read More
 

Cleaning up the budget

The News (June 18, 2020)
The writer is a former adviser to the World Bank. Pakistan’s corona-related ‘lives and livelihood’ crisis is grave. One was hoping that the prime minister would make a clarion call, during the budget session, to all citizens, political parties and organs of state – similar to what President Kennedy made during his inaugural address. As a bold leader, Kennedy pivoted his address on the following... Read More
 

Sindh health sector gets a bump in deficit budget

The Express Tribune (June 17, 2020)
The Sindh government on Wednesday unveiled a Rs1,241.13 billion deficit budget for the next fiscal year 2020-21, cutting the development outlay and giving a priority to the health sector in the wake of ongoing coronavirus pandemic. Amidst noisy opposition protest, Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance minister,... Read More
 

KP govt expected to present a budget deficit of Rs60bn

The Pakistan Today (June 17, 2020)
PESHAWAR: The Khyber Pakhtunkhwa (KP) government is likely to present a budget deficit of Rs60 billion due to non-payment of its dues amounting to billions of rupees by the federal government. According to reports, due to the economic downturn, the federal government is unable to pay the province its full share of the Net Hydel Profit (NHP), due to which... Read More

Pakistan's textile sector rejects ‘unrealistic’ Budget 2020-21 The Express Tribune (June 16, 2020)

FAISALABAD: The condition of the textile industry will worsen amid a liquidity crunch and shrinking global business, and will lead to closure of industrial units, decline in exports and massive unemployment. Pakistan Hosiery Manufacturers Association (PHMA) Chairman Salamat Ali, in a statement, said the value-added textile export industry had rejected the federal budget... Read More

Pakistan budget 2020-21: The numbers don’t add up

The Orfononline.com (June 16, 2020)
For some years now, Pakistan’s economy has been in the throes of a slow meltdown. Like the previous two budgets, the third budget presented by the Imran Khan government on 12 June was supposed to be make or break, and quite like the preceding budgets, the current budget too will neither completely break nor make Pakistan; instead, Pakistan’s economy will remain in what is best described... Read More

‘Budget lacks reforms; targets too ambitious’

The Daily Times (June 15, 2020)
Leader of the business community and former President ICCI Shahid Rasheed Butt on Sunday said budget lacks reforms while revenue targets are too ambitious and incompatible with the ground realities. The mismatch between an economic slowdown and tax collection target of Rs4,900 billion to tackle an out of control budget deficit has unnerved business community... Read More

BUDGET 2020-21: Govt. tries to appease all stakeholders

The Express Tribune (June 15, 2020)
Industries Minister Hammad Azhar on Friday announced a Rs7.1 trillion budget in a bid to revive the stalled International Monetary Fund (IMF) programme, which both the opposition and experts termed unrealistic and full of internal contradictions. The government proposed primary deficit target – the total revenues excluding interest payments –at only 0.5% of gross domestic product (GDP)... Read More

Presidency budget slashed significantly

The Dawn (June 14, 2020)
ISLAMABAD: The overall budget of presidency has been cut by more than 60 per cent but those of the Supreme Court and Islamabad High Court have enhanced their expenditures for 2020-21, according to the budget document. The total budget of the President House was Rs992 million for the outgoing fiscal year but President Arif Alvi has reduced it by Rs597m, or 60.18 per cent... Read More

PTI government's strategy for Budget 2020-21

The News (June 13, 2020)
The PTI-led government faces a delicate task in balancing its priorities 2020-21 amid an unprecedented crisis due to the coronavirus pandemic and other challenges arising from the government's austerity measures in fiscal 2019-20. The following will be its key areas of focus next fiscal year. No new taxes were introduced in order to provide relief to the masses۔ Proposed tax concessions will prove effective... Read More

Budget FY21: Govt reduces subsidies despite Covid-19 impact

The Pakistan Today (June 13, 2020)
ISLAMABAD: The federal government on Friday announced the budget for the fiscal year 2020-21, revealing that subsidies have been reduced from Rs349.5 billion for the outgoing year to Rs209 billion for the upcoming year, despite the economic impact of the coronavirus outbreak on the masses. According to the budget documents, the government has allocated 59.33 per cent subsidy for WAPDA/PEPCO... Read More
 
Budget Study Centre   Issue 68 June 11, 2020

CPDI BUDGET WATCH

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
 
Budget Study Centre   Issue 67 May 28, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Proposals for Punjab budget: OICCI suggests harmonisation of taxes

The News (May 28, 2020)
LAHORE: Overseas Investors Chamber of Commerce and Industry (OICCI) suggested that in line with international and regional practices a uniform service tax law may be drafted and agreed upon by the tax authorities of the provinces and federal government, for implementation in their respective jurisdiction. Furthermore, a uniform tax return may also be introduced for the taxpayers. Read More
 

Budget 2020-21: PTI govt to focus on relief for people, business

The Express Tribune (May 28, 2020)
KARACHI: The government is determined to announce a pro-people, pro-business and no-new-tax budget for the next fiscal year starting July 1. Rather, the FY21 budget would be a continuity of the current policies of facilitating the masses and businesses to win the war against the coronavirus pandemic, officials said. The Federal Board of Revenue (FBR) is being tasked to collect Rs5,100 billion... Read More
 

Balancing the budget

The News (May 27, 2020)
Najeeb Many think this should be a corona budget. Maybe it is more than that – a survival budget for the millions of citizens and businesses who need a lending hand. The pre-Covid-19 economy was saddled with a plethora of headwinds besieging growth to mere 1.9 percent in FY19 and to 2 percent in FY20. Budget FY21 has to design a blockbuster response to a shrinking economy between -0.38 percent... Read More
 

Islamabad traders demand hike in development budget

The Express Tribune (May 27, 2020)
ISLAMABAD: An umbrella body of traders and businessmen from the federal capital have called upon the federal government to enhance budgetary allocations for the city in the upcoming budget to ensure proper development there. This was stated by Islamabad Chamber of Commerce and Industry (ICCI) President Ahmed Waheed in a statement on Tuesday. He demanded that... Read More
 

China’s Defense Budget Set to Grow at Slower Pace

The dsm.com (May 26, 2020)
China has announced a defense budget for 2020 that will result in a year-on-year nominal increase of 6.6 percent, the lowest such figure since the first half of the 1990s. Chinese officials announced on May 22 a topline defense figure of 1.268 trillion yuan, which amounts to $178 billion. The earmark for 2019 amounted to CNY1.19 trillion, or $173 billion. This represented an increase over... Read More
 

World Bank approves $500mn loan for Pakistan in fight against Covid-19

The Sutchtv.com (May 26, 2020)
The World Bank has approved a $500mn loan programme for Pakistan to provide better opportunities for women, strengthen its social safety nets and improve access to quality healthcare and education as the country continues to bear the brunt of the coronavirus. The Securing Human Investments to Foster Transformation (SHIFT) programme will support policy reforms to help Pakistan’s... Read More
 

B150bn from future budgets may be used

The Bangkok Post (May 25, 2020)
The government is set to reallocate 150 billion baht from the 2020 and 2021 fiscal budgets if additional funds for economic and social restoration are needed to blunt the fallout from the pandemic, says the Budget Bureau. The 150 billion baht will be spent if either the existing 400 billion baht earmarked for economic and social rehabilitation is insufficient or the global economy has... Read More
 

Market likely to remain range-bound till budget update

The News (May 24, 2020)
The capital market showed lacklustre performance owing to shortened week because of long Eid holidays, while lack of surprises on interest rate front and continuous selling from foreign fund houses. The capital market showed lacklustre performance owing to shortened week because of long Eid holidays, while lack of surprises on interest rate front and continuous selling from foreign fund houses squeezed the... Read More
 

Budgeting in a pandemic

The News (May 24, 2020)
Adviser to the PM on Finance and Revenue Dr Abdul Hafeez Shaikh, in a press release issued on May 18, 2020, noted that while preparing the next budget, “we should be more vigilant, practical, and analyze the opportunities and challenges offered by the current environment”. He added that the “government is ready to listen to all stakeholders to prepare a budget which is according to the need... Read More
 

China’s military budget growth slows to 6.6%

The News (May 23, 2020)
Beijing: China will increase its military budget by a slower 6.6 percent this year, the government announced Friday at the opening session of its annual National People’s Congress. The budget will be set at 1.268 trillion yuan ($178 billion) for the year -- the second-biggest in the world after the United States -- continuing a downward trend in military spending and lower than last year’s increase of 7.5 percent... Read More
 

Pakistan borrows $7.381b from external sources in 10 months of current FY

The Nation (May 23, 2020)
ISLAMABAD-Pakistan’s borrowing from external sources had remained lower in ten months (July to April) of the current fiscal year due to out-break of COVID-19 as the pandemic has completely halted the development activities across the country. Pakistan had borrowed $7.381 billion from the external sources in Jul to April of the current fiscal year. The government’s borrowing from... Read More
 

Minimal role of parliament in federal budget highlighted

The Pakistan Observer (May 22, 2020)
Islamabad: In a PILDAT organized online course on Parliament and the Purse Strings, speakers and participating MPs highlighted the negligible role of Parliament in influencing and scrutinizing federal budget and agreed that multi-party consensus is required to enhance Parliament’s role in the Federal Budget process. Power of the purse or control on purse strings is one of the most... Read More
 

Pakistan's current account deficit soars to $572m

The Express Tribune (May 22, 2020)
KARACHI: Pakistan’s current account deficit – the difference between country’s expenditure and income – spiked to $572 million in April 2020 but remained largely under control and affordable on the back of recent growth in the country’s foreign currency reserves. The current account deficit soared 64-fold in April compared to $9 million in the previous month of March, the State Bank of... Read More
 

China announces $178.2 billion military budget

The Defense News (May 22, 2020)
MELBOURNE, Australia — China has announced a 6.6 percent growth in its defense budget for this year, its lowest rate of increase for almost three decades. The growth in China’s defense budget would see spending rise from $167 billion last year to $178.2 billion, an increase of about $11 billion. The country has the second-largest defense budget in the world, behind only the United States. Despite the,... Read More
 

Govt to present FY21 budget on June 12

The Pakistan Today (May 21, 2020)
ISLAMABAD: The federal government will present the federal budget for financial year 2020-21 before the National Assembly on June 12, sources said on Thursday, adding that Prime Minister Imran Khan has already granted the necessary approval in this regard. Sources said officers of the Ministry of Finance (MoF) engaged in preparing the federal budget have been barred from... Read More
 

Budget 2020-21: CM Buzdar directs departments to cut unnecessary expenditures

The Dunya News (May 21, 2020)
LAHORE (Dunya News) – Punjab Chief Minister Sardar Usman Buzdar has directed the provincial departments to cut unnecessary expenditures as novel coronavirus has created difficult circumstances, Dunya News reported on Thursday. Usman Buzdar chaired a special session at the CM Office to deliberate on the upcoming budget and annual development... Read More
 

Khyber Pakhtunkhwa slashes uplift budget by 50 per cent

The Pakistan Today (May 20, 2020)
PESHAWAR: The Khyber Pakhtunkhwa government has slashed the developmental budget by 50 per cent for the ongoing financial year due to the coronavirus-induced financial crisis. Sources told Pakistan Today that due to the failure of the federal government to disburse net hydel profit, state transfers and other funds to provincial government, the province has reduced its... Read More
 

Pakistan’s economy size shrinks to $264b

The News (May 19, 2020)
ISLAMABAD: With the contraction of Pakistan’s GDP growth rate that falls into zero range at negative -0.38 percent for the outgoing fiscal year, the total size of the country’s economy and per capita income are expected to shrink significantly in terms of dollar in post Covid-19 pandemic. The total size of Pakistan’s economy in terms of dollars has decreased up to US$264 billion for outgoing fiscal year... Read More
 

IMF proposes Rs575 billion new taxes in next budget

The Express Tribune (May 18, 2020)
ISLAMABAD: The International Monetary Fund (IMF) has proposed Rs5,100 billion revenue target in the next budget for fiscal 2020-21, including additional tax measures of Rs575 billion, sources told The Express Tribune on Tuesday. A senior Federal Board of Revenue (FBR) official said that in the recent talks with the IMF via a video link, the Fund had been cautioned that business sectors had... Read More
 

Budgetary policies in times of virus

The Express Tribune (May 18, 2020)
ISLAMABAD: Pakistan’s policymakers are in an unenviable position while formulating the upcoming fiscal year’s budget. Everyone from small and medium enterprises to large-scale manufacturing industries is looking for relief measures to cope with the Covid-19 crisis. Even without the pandemic, many would expect some relief in the existing taxation regime as the government is reaching the... Read More
 

‘Upcoming budget to be challenging for government’

The News (May 18, 2020)
Islamabad: Senior vice president of FPCCI Business Panel and President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said the budget-making process amid crisis will be a challenge for the government. The upcoming budget should be a traditional one but a modern document to provide some relief to the masses. It should not focus... Read More
 

Murad says next Sindh budget to be impacted by coronavirus

The Dawn (May 17, 2020)
KARACHI: Chief Minister Syed Murad Ali Shah on Saturday said that the budget for the next financial year would be impacted by coronavirus. “Therefore, a new strategy has been worked out under which priorities will be given to health services, employment generation, social security, and innovation in education sector,” he added. This he said while presiding over a meeting to set a strategy for the budget... Read More
 

Budget to focus on health services, employment generation, says CM

The Pakistan Today (May 17, 2020)
KARACHI: Sindh Chief Minister (CM) Syed Murad Ali Shah has said that the budget for next financial year, 2020-21, will be coronavirus impact-oriented; according to which priorities would be given to health services, employment generation, social security, and innovation in the education sector. The chief minister was presiding over a meeting to set a strategy for the upcoming budget... Read More
 

Govt may reduce development budget to Rs530bn in FY21

The Pakistan Today (May 16, 2020)
ISLAMABAD: As the Covid-19 pandemic has left limited room for the government to spend on development projects, the Centre has planned to allocate only Rs530 billion to Public Sector Development Programme (PSDP) for the next fiscal year, a reduction of almost Rs171 billion from the current fiscal year. According to an official privy to this development, Planning Minister Asad Umar, while... Read More

Govt plans to boost health, social sectors in upcoming budget The Pakistan Today (May 15, 2020)

ISLAMABAD: To counter the adverse impact of the coronavirus, the federal government on Friday decided to give priority to the social as well as health sectors in the next budget for fiscal year 2020-21. The decision was taken at a meeting chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh with regard to the budgetary outlook for the next financial... Read More

Pakistan’s GDP to grow 2% in FY21

The Express Tribune (May 15, 2020)
ISLAMABAD: With the projection of up to 1.5% negative gross domestic product (GDP) growth owing to the impact of Covid-19 pandemic in FY20, the country’s economy is expected to turn around to record 2% growth in the new fiscal year (2020-21), Adviser to Prime Minister on Finance Abdul Hafeez Shaikh said on Thursday. Participating in a webinar on “Pakistan’s Economy... Read More
 
Budget Study Centre   Issue 66 May 14, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Lockdown damaged economy severely, says PM

The Pakistan Today (May 14, 2020)
ISLAMABAD: Prime Minister Imran Khan on Thursday said the countrywide lockdown was only a stopgap measure to contain the coronavirus which has so far claimed over 780 lives in Pakistan. Chairing a meeting of Punjab and Khyber Pakhtunkhwa (KP) chief ministers via video link to review coronavirus situation, the PM said the coronavirus lockdown damaged the economy severely... Read More
 

Hafeez Shaikh expects 2pc GDP growth in the next fiscal year

The Pakistan Today (May 14, 2020)
ISLAMABAD: With current projections of -1.5 GDP growth rate owing to the impact of COVID-19 pandemic, the country’s economy would turn around to witness 2pc growth in upcoming fiscal year (2020-21), Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh said on Thursday. Participating in a webinar on “Pakistan Economy: Post... Read More
 

Experts call for further curbs on tobacco industry

The Pakistan Today (May 13, 2020)
ISLAMABAD: The government should continue its tobacco taxation policy and enhance federal excise duty (FED) on cigarettes, as approximately 16pc of cigarettes smoked in Pakistan are illicit and big tobacco companies are allegedly involved in the promotion of such malpractices. These revelations were made during an online dialogue on ‘Illicit trade of tobacco in Pakistan and who is... Read More
 

PPP wants the budget to focus on coronavirus

The Pakistan Today (May 13, 2020)
ISLAMABAD: Pakistan People’s Party (PPP) Chairman Bilawal Bhutto-Zardari said the government’s budget for the upcoming fiscal year must focus on mitigating the impacts of coronavirus, saying it was the federal government’s responsibility to ensure stability in times of corona. Talking to a media outlet at Parliament House on Wednesday, the PPP chief said that these were not normal times and... Read More
 

WB, ADB to provide $4 billion in budget, balance of payment support

The Nation (May 13, 2020)
ISLAMABAD: The World Bank (WB) and Asian Development Bank (ADB) would jointly provide about $4 billion in budget and balance of payment support to Pakistan over the next 18 months to address the immedi­ate impacts of COVID-19, mitigate socio-economic disruption and support reforms. In addition, both the banks would continue to work with the govern­ment to accelerate or repurpose... Read More
 

For the economy revival, budget proposals by stakeholders to be given due consideration

The Nation (May 28, 2020)
ISLAMABAD-Advisor to the Prime Minister on Commerce Abdul Razak Dawood said that the budget proposals, forwarded by different stakeholders, would be given due consideration by the Tariff Policy Board (TPB) so that economy of Pakistan could be revitalized at this difficult juncture. He was chairing the 8th meeting of the TPB, held on Monday in the Committee Room of the Ministry of... Read More
 

Annual health budget won’t be enough to fight pandemic: Bilawal

Samaa TV (May 11, 2020)
Pakistan Peoples Party chairperson Bilawal Bhutto Zardari says the one year health budget of every province won’t be enough to fight this pandemic. He was giving a speech in the National Assembly on Monday. “All provinces are trying but we think the federal government should have stood beside us in this national emergency. It should have been treated as a war-like situation,” said Bilawal... Read More
 

Budget 2020: Paradigm shift needed

The Daily Times by Ikramul Haq (May 11, 2020)
Budget 2020 is in the making amidst very difficult times when we are faced with economic meltdown due to Covid-19 outbreak and extreme hardships by weaker segments of society. The traditional approach adopted for decades in Pakistan for balancing the books, levying more taxes, containing fiscal deficit and other number games will have to be given up in totality under the prevalent exceptional... Read More
 

Govt likely to unveil tax-free budget for 2020-21

The Dawn (May 10, 2020)
ISLAMABAD: The Federal Board of Revenue (FBR) has drafted tax proposals for Budget 2020-21 mainly focusing on “simplification of laws and removing tax anomalies,” Dawn has learnt from knowledgeable sources. Unconfirmed reports are that the government is likely to announce a ‘tax-free budget’, an official in the FBR told Dawn, adding a final decision will be taken after consulting with the... Read More
 

Health system to be upgraded in upcoming fiscal budget: Jhagra

The Pakistan Today (May 09, 2020)
PESHAWAR: Khyber Pakhtunkhwa (KP) Minister for Health and Finance, Taimur Saleem Jhagra has said that the provincial health system would be upgraded to deal with coronavirus, dengue, and polio by allocating a huge amount for the health sector in the upcoming fiscal budget. Talking to media and doctors at Civil Secretariat here on Saturday, Jhagra said the government... Read More
 

Govt to present annual budget on June 5

The Pakistan Today (May 09, 2020)
ISLAMABAD: The federal government has decided to present the budget for fiscal year 2020-21 on June 5, it was learnt on Friday. According to sources, the Finance Ministry has recently given a presentation to Prime Minister Imran Khan with regard to the next fiscal year budget, wherein he was informed that the budget would be presented in the first week of June. Sources said the... Read More
 

Govt urged to reduce income tax by 50pc in budget

The Pakistan Today (May 09, 2020)
LAHORE : The country’s leading tax consultants and economic experts on Saturday urged the government to reduce income tax rate by 50 percent in the case of persons earning up to Rs3 million but should not give income tax relief to the rich in the upcoming federal budget.  Talking to Pakistan Today, leading tax consultant and an economic expert Huzaima Bukhari said that the federal and provincial... Read More
 

Exclsuive: Pakistan's Fiscal Deficit to Surge, Tax Revenue to Miss Target This Year - finance Chief

The New York Times (May 08, 2020)
ISLAMABAD — Pakistan's fiscal deficit will surge to 9% in the ongoing fiscal year, the country's de facto finance minister said on Friday, as its economy reels from the fallout of the coronavirus crisis. Pakistan, which has reported 26,435 confirmed cases of COVID-19 and 599 deaths, has announced it will start lifting a countrywide lockdown from Saturday in a bid to... Read More
 

FY21 budget: Hafeez Shaikh vows redressal of business community’s woes

The Pakistan Today (May 08, 2020)
ISLAMABAD: Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh on Friday said the government was actively resolving the liquidity related issues of the business community by clearing all outstanding tax refunds on a fast-track basis. “The government was also taking progressive measures for further ease of doing business and to improve business environment,... Read More
 

Directive to review revenue generation budget proposals

The News (May 07, 2020)
LAHORE:Punjab Finance Minister Hashim Jawan Bakht has instructed the excise and taxation department to review its revenue generation budget proposals and prepare the proposals in consultation with provincial minister for excise and taxation. He said that before covid-19 pandemic the pace of development projects was satisfactory, development expenditures and revenue collection was... Read More
 

ICCI finalises proposals for budget

The News (May 07, 2020)
Islamabad : Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce & Industry (ICCI) said that Chamber in consultation with business community has finalised its budget proposals, which have been sent to the relevant departments and called upon the government to incorporate them in the Federal Budget 2020-21 as their implementation would address the... Read More
 

Budget deficit reaches Rs1.68tr in nine months

The Pakistan Today (May 06, 2020)
ISLAMABAD: Pakistan’s budget deficit during the first nine months (July-March) of the current fiscal year (FY20) was recorded at Rs1,686 billion (3.8pc of the GDP), according to the Federal Fiscal Operation Summary 2019-20, released by the Ministry of Finance on Wednesday. According to the report, during the July-March FY19 period, the country’s expenditures... Read More
 

Next budget to focus on COVID-19, not austerity

The Nation (May 06, 2020)
ISLAMABAD - Prime Minister Imran Khan has directed Advisor to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh to make suitable increase in the federal budget 2020-21 to mitigate sufferings of government employees because of coronavirus. The Prime Minister has stressed the need for taking measures with wisdom so that economic activity could be generated, but not at the... Read More
 

Experts say APTMA’s budgetary proposals ‘only to facilitate the rich’

The Pakistan Today (May 05, 2020)
LAHORE: Experts in textile industry and government circles have raised fingers over the budget proposals of the All Pakistan Textile Mills Association (APTMA), terming these non-starter and non-productive and calling for a complete study to examine the factors that have made the sector non-productive and uncompetitive. According to a government official, APTMA’s approach... Read More
 

Govt working on changes in tariff structure for upcoming budget: Dawood

The app.com (May 05, 2020)
ISLAMABAD, May 05 (APP):Advisor to the Prime Minister on Commerce and Investment Abdul Razak Dawood on Tuesday said the Ministry of Commerce was aggressively working on changes in the tariff structure for the upcoming budget. The tariff structure changes were aimed at facilitating local production thereby moving towards local manufacturing under the ‘Make in Pakistan Policy’, the ... Read More
 

Over Rs99bn spent on Diamer Bhasha dam project so far

The Pakistan Today (May 04, 2020)
A sum of Rs 99.238 billion including Rs 93.9 billion for land acquisition on multi-purpose Diamer Bhasha dam project has already been spent so far. Sources told state-run news agency here that an amount of Rs 61 billion would be spent on the project during the current fiscal year. Giving the breakup, they said Rs 22 billion would be spent of resettlement while remaining Rs 39 billion would be utilised... Read More
 

Whither the budget deficit

The Business Recorder (May 04, 2020)
There was intense speculation on the government's ability to meet the budget deficit target of 7.2 percent for the current fiscal year, the same as projected for 2018-19, agreed with the International Monetary Fund (IMF) even before the rampage wrought on the country's fragile economy by the Coronavirus; today the projection maybe closer to 12 percent as opposed to between... Read More
 

Govt. is expected to Rationalize Taxes on Telecom Sector in the Coming Budget (2020-2021)

The Phone World (May 03, 2020)
The government is expected to rationalise taxes on telecom sector in the coming budget (2020-2021) and review budget proposals of the Pakistan Telecom Authority (PTA) to harmonize service sales tax (SST) 19.5 percent and the federal excise duty (FED) 17 percent on telecom services into one lower rate of the SST/FED for all the provinces and the federal capital. In this regard, the Ministry... Read More
 

China’s military budget will still rise despite coronavirus, experts predict

The scmp.com (May 03, 2020)
China’s upcoming defence budget will be only slightly hit by the economic downturn that followed the coronavirus outbreak, and a modest increase is still expected as it continues to develop its military capability, analysts said. The government’s military budget is expected to be revealed, as is the norm, at this year’s session of the National People’s Congress (NPC), China’s legislative body. Delayed by... Read More

Exports value to remain at $22bn in FY 2019-20: Razak The Pakistan Today (May 02, 2020)

ISLAMABAD: Adviser to the Prime Minister on Commerce Abdul Razak Dawood has said that the country’s exports target of US $ 25 billion could not be achieved due to the ongoing situation of lockdown in the country and it could decline to more or less to US $ 22 billion. The exports decreased in April by 50 percent and home remittances also declined in this situation, Abdul Razzak Dwaood said... Read More

Pakistan-IMF technical talks underway for finalising blueprint of next budget

The News (May 02, 2020)
ISLAMABAD: Technical talks between Pakistan and the International Monetary Fund (IMF) are underway for finalising blueprint and salient features of the upcoming budget for 2020-21 in post COVID-19 pandemic situation. Top officials said that the IMF has also linked resumption of Extended Fund Facility (EFF) programme with approval of the next budget for 2020-21 in compliance... Read More

Oil price crash and Nigeria’s 2020 budget

The blueprint.ng (May 01, 2020)
With more than 70 per cent of Nigeria’s dollar revenue coming from oil export, the crash in its price has raised new challenges for the 2020 budget; In mid-2014, when the price of oil crashed from a high of $114 per barrel to less than $30, the Nigerian economy was left in tatters. Then there was strident calls by all and sundry for the government to diversify the economy moving away from over reliance... Read More

Pakistan's economy may grow, but ‘policy shift required’ for new fiscal

The Express Tribune (May 01, 2020)
ISLAMABAD: Pakistan’s economic growth momentum may still remain positive but from the new fiscal year, the country needs a major shift in monetary and fiscal policies to offset the adverse impact of coronavirus (Covid-19), the Planning Commission advised a top legal body on Thursday. “The public sector spending should be used as a tool to stimulate economic growth and spurt consumer spending but the finance... Read More
 
Budget Study Centre   Issue 65 April 30, 2020

CPDI BUDGET WATCH

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 Rs.news (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 Reuters.com (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 Geo.tv (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 Bloomberg.com (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
 
Budget Study Centre   Issue 64 April 16, 2020

CPDI BUDGET WATCH

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 aa.com (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 Moneycongtrol.com (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 Samaa.tv (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 Geo.tv (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
 
Budget Study Centre   Issue 63 April 02, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

World Bank approves additional financing of $700m for Dasu power project

The Pakistan Observer (Apr 02, 2020)
ISLAMABAD: The World Bank Wednesday approved an additional $700 million financing to help Pakistan generate low-cost, renewable energy to provide affordable electricity supply to millions of users. The Additional Financing for Dasu Hydropower Stage I Project will finance the transmission line to complete the first phase of the Dasu hydropower plant that will install 2,160... Read More
 

Foreign exchange: SBP reserves fall $804m to $11.2b

The Express Tribune (Apr 02, 2020)
KARACHI: The foreign exchange reserves held by the central bank decreased 6.7% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On March 27, the foreign currency reserves held by the SBP were recorded at $11,185.6 million, down $804 million compared with $11,989.2 million in the previous week... Read More
 

Rs6 billion package to give railways breathing space

The Express Tribune (Apr 01, 2020)
LAHORE: Cash-strapped Pakistan Railways has managed to secure a relief package of Rs6 billion from the Economic Coordination Committee (ECC), which is expected to provide some breathing space to the company in the current crisis. The amount, approved on Monday, would be given to the Ministry of Railways in three equal installments of Rs2 billion per... Read More
 

FBR collects Rs3.06tr in taxes, misses target

The Express Tribune (Apr 01, 2020)
ISLAMABAD: The month of March proved catastrophic for the Federal Board of Revenue (FBR) that missed its collection target by a record Rs263 billion despite releasing Rs12 billion fewer tax refunds than what Prime Minister promised to exporters under the just-announced relief package. Cumulatively, the shortfall in nine-month tax collection jumped to Rs693 billion against the... Read More
 

UN calls for $2.5 trillion coronavirus rescue package for developing countries

The Pakistan Today (Mar 31, 2020)
The United Nations has called for 2.5 trillion dollars coronavirus rescue package for developing countries to boost their resilience to further hardship in wake of coronavirus threat. In an appeal, UNCTAD director of Globalization and Development Strategies, Richard Kozul-Wright, said the economic fallout from the coronavirus pandemic is likely to get much worse before it gets... Read More
 

Govt approves Rs43m to set up media wing

The Pakistan Today (Mar 31, 2020)
ISLAMABAD: The federal cabinet has approved Rs42.791 million for the creation of a Digital Media Wing in the Ministry of Information and Broadcasting (MoIB) during the current financial year. Documents available with Pakistan Today disclosed that the cabinet had approved the summary of supplementary grant floated by the ministry. The government has decided to create a Digital... Read More
 

Debate over constutionality of Sri Lanka’s March-May 2020 mini-budget

The Economy Next(Mar 30, 2020)
ECONOMYNEXT – A mini-budget from March to May 2020, drawn up by the Treasury purportedly under presidential powers is unconstitutional as a vote-on-account has already been passed by parliament up to April, ex – Finance Minister Mangala Samaraweera had claimed. He said a pre-election budget report referred to the newly drafted mini-budget as a vote-on-account, which... Read More
 

COVID-19: MoF suspends preparations for next fiscal budget

The Pakistan Today (Mar 30, 2020)
ISLAMABAD: The Ministry of Finance has suspended the budget preparations due to the ongoing COVID-19 pandemic. “The ministry has suspended for the time being all the activities with regard to budget preparation for the fiscal year 2020-21,” said a source privy to this development. The economic team had issued the budget call circular in January this year, following which the MoF had also gotten... Read More
 

Govt might suffer Rs400b shortfall in non-tax collection

The Nation (Mar 29, 2020)
ISLAMABAD-The government might suffer shortfall of Rs400 billion in non-tax collection during current fiscal year due to the uncertainty created by the coronavirus pandemic. The government is unlikely to complete the privatization programme during ongoing fiscal year due to the prevailing situation. The government had projected to generate around Rs400 billion by... Read More
 

Iran to use 20% of state budget to fight coronavirus

The Middle east monitor (Mar 29, 2020)
Iran is to allocate 20% of its annual state budget to fighting the coronavirus outbreak in the country, one of the worst-hit in the world, President Hassan Rouhani said on Saturday, as reported by Reuters. Iran’s death toll from coronavirus rose to 2,517 on Saturday, with 139 fatalities in the past 24 hours, as cases rose 3,076 to 35,408, Health Ministry spokesman Kianoush Jahanpour said on state television... Read More
 

Govt likely to earmark Rs270bn in subsidies for FY21

The Pakistan Today (Mar 28, 2020)
ISLAMABAD: The federal government is likely to earmark Rs270 billion under the head of ‘subsidies’ for the next fiscal year (FY2020-21), Pakistan Today has learnt. According to sources, the Ministry of Finance, in its budget strategy paper for the next fiscal year, has proposed to keep Rs250 to Rs270 billion for subsidies in FY21. The figure is slightly less than the amount allocated for the same in the... Read More
 

IMF working on Pakistan’s request of $1.4b

The Nation (Mar 28, 2020)
ISLAMABAD - The International Monetary Fund (IMF) is working expeditiously to respond to Pakistan’s request for additional financing of $1.4 billion to increase foreign exchange reserves and budgetary support for fighting adverse impacts of the coronavirus pandemic. Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh had recently said... Read More
 

India’s economic growth likely to decline by 200 bps in FY21: Yashwant Sinha

The Financial Express (Mar 27, 2020)
India’s economic growth is likely to decline by 2 percentage points in the next financial year due to the impact of coronavirus pandemic and the consequent 21-day countrywide lockdown, former finance minister Yashwant Sinha said on Friday. In an interview to PTI, Sinha said India was already facing high unemployment and the pandemic has added to the woes. “My own... Read More
 

Making Budgets more Inclusive and Responsive to the Public Needs

The Daily Times by Zia ur Rahman (Mar 27, 2020)
How budget cycle works, what is cut motion, to whom the budget is presented in the first place, what is Budget Call Circular and inclusive budgeting – these are some of the question which need to be addressed since a vast majority of the parliamentarians in the federal and provincial assemblies are not aware of the budget making process, hence unable to play their effective role in... Read More
 

Pak seeks additional $1.4b from IMF

The Nation (Mar 26, 2020)
ISLAMABAD - Pakistan has decided to seek additional $1.4 billion from International Monetary Fund (IMF) on fast track distribution amid prevailing coronavirus crisis in the country. Prime Minister’s Adviser on Finance and Revenue Abdul Hafeez Shaikh said Pakistan was engaged in talks with the IMF for an additional $1.4 billion on easier terms and conditions. “This sum [of additional ... Read More
 

World Bank, IMF call for suspending debt payment by developing countries

The Pakistan Today (Mar 26, 2020)
The World Bank and International Monetary Fund (IMF) Wednesday urged upon its bilateral creditors to suspend debt payments from International Development Association (IDA) countries to help them combat the coronavirus (COVID-19) pandemic. Pakistan being part of IDA countries, will also get a marginal benefit if the creditor countries agree to the joint... Read More
 

Russia's 15% Tax On Dividends, Interest Outflow May Give Budget $890Mln In 2020

The Urdupoint.com (Mar 25, 2020)
MOSCOW (UrduPoint News / Sputnik - 25th March, 2020) The proposed 15 percent tax on dividends and interest taken out of Russia will give the country's budget at least 70 billion rubles ($890 million) this year, Olga Lebedinskaya, associate professor of the Plekhanov Russian Academy of Economics, told Sputnik on Tuesday. Earlier in the day, Russian... Read More
 

Unanticipated challenge to budget-making process

The Business Recorder (Mar 25, 2020)
The preparations for the budget for fiscal year 2020-21 began late last year, as is the norm, with ministries/ departments projecting their current and development expenditure needs for next year, traditionally overstated to ensure their actual needs are approved by the Ministry of Finance operating under severe resource constraints; and as the... Read More
 

Monetary policy: SBP slashes interest rate by 150bps to 11%

The Express Tribune (Mar 24, 2020)
KARACHI: The State Bank of Pakistan (SBP) has slashed the key interest rate by another 150 basis points to 11%, in a bid to combat growing uncertainty amid the coronavirus pandemic. The announcement was made in an emergency meeting called by the central bank on Tuesday, a week after the Monetary Policy Committee (MPC) had cut the interest rates. With this, the SBP has reduced the... Read More
 

KP Police demand Rs 2,450m additional funds in next budget

The News (Mar 24, 2020)
PESHAWAR: The Khyber Pàkhtunkhwa Police have demanded an additional Rs 250 million in terms of fuel for the patrolling cars and Rs 2000 million for procurement of vehicles in the next financial year, a source told The News on Monday. Besides, the force has asked the KP government to allocate and additional Rs 100 million each for the cost of investigation as well as providing basic ... Read More
 

PSDP process overhaul need of the hour in Pakistan

The Express Tribune (Mar 23, 2020)
ISLAMABAD: The Public Sector Development Programme (PSDP) is the apex development-sector portfolio funded by the government. In the current fiscal year, the total budget allocated to the PSDP was Rs701 billion. The government has spent over Rs11.5 trillion through the PSDP in the last two decades with little improvement in the process. Projects... Read More
 

Budgeting in the time of Covid-19

The Dawn by Khaleeq Kiani (Mar 23, 2020)
The coronavirus appears to have a contagious economic impact on Pakistan. As federal and provincial authorities sit together reporting situations in their respective sectors and areas, much larger than previously estimated economic losses are coming to the fore and counting. From exports to revenues, from industry to trading, from tourism to entertainment and from transport... Read More
 

Pakistan's $300m loan rated ‘moderately unsatisfactory’ by World Bank

The Express Tribune (Mar 22, 2020)
ISLAMABAD: An independent evaluation group of the World Bank has declared that Pakistan could not successfully implement the $300 million budget support loan that the lender had given three years ago for bringing transparency and deepening the financial sector. The findings of the Independent Evaluation Group have once again endorsed the deeply-held view that successive... Read More
 

Sri Lanka makes mini-budget till May 2020 under Presidential powers

The Economy Next (Mar 21, 2020)
ECONOMYNEXT – Sri Lanka has made a three month mini-budget running from March to May 2020, using constitutional powers given to President Gotabaya Rajapaksa after parliament was dissolved as the country remains gripped by Coronavirus. Sri Lanka began 2020 with a 4-month mini-budget or vote-on-account running up to April passed by the last parliament. The current... Read More

IMF to give tax break to businesses hit by corona

The Express Tribune (Mar 21, 2020)
ISLAMABAD: The International Monetary Fund (IMF) has agreed with Pakistan to give tax breaks to businesses being affected by the global coronavirus pandemic but Islamabad does not feel the need to renegotiate the $6 billion package, which may also make next year’s tax collection target unrealistic. “The IMF has agreed to give tax concessions to industries and individuals,... Read More

Federal govt releases Rs 12.13bn for CPEC projects under PSDP 2019-20

The Nation (Mar 20, 2020)
The government has so far released development funds of over Rs 12.13 billion for various development projects of China Pakistan Economic Corridor (CPEC) under its Public Sector Development Programme (PSDP) 2019-20. According to latest data issued by the ministry of Planning on Thursday, the government had allocated Rs 18 billion for around 20 projects of CPEC for the year 2019-20... Read More

Missing points in budget strategy paper

The Business Recorder (Mar 20, 2020)
Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan waxed eloquent as usual about the finance ministry's many achievements as she explained its Budget Strategy Paper for 2020, duly approved by cabinet, to the press, yet there was precious little about new measures to meet growth and revenue challenges over the rest of the year. The Paper... Read More
 
Budget Study Centre   Issue 61 March 05, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Government delays Budget infrastructure plan

The BBC.com (Mar 05, 2020)
The detailed 30-year plan was to be published "alongside" the Budget, the government said at the Queen's Speech in December. Three weeks ago, then chancellor Sajid Javid confirmed the timetable. The strategy is seen as crucial to the government's plan to "level up" regional disparities. The delay will allow the new chancellor, Rishi Sunak, to refocus the strategy, to reflect potentially larger resources available... Read More
 

SBP reserves up $166m to $12.8bn

The Pakistan Today (Mar 05, 2020)
KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased $166 million to $12,757 million during the week ending February 28, 2020, according to data released by the central bank on Thursday. The total liquid foreign reserves held by the country stood at $18,869 million. Net foreign reserves held by commercial banks recorded a dip from $6,151.3 million in... Read More
 

Budget for FY21: Punjab to earmark Rs350 billion for development

The Express Tribune (Mar 4, 2020)
LAHORE: Punjab Finance Minister Hashim Jawan Bakht announced on Tuesday that the Punjab Annual Development Plan (ADP) for 2020-21 would be worth Rs350 billion, which would gradually increase in later years. Speaking at a pre-budget public-private partnership dialogue, organised by the Punjab Board of Investment and Trade (PBIT), the minister assured the... Read More
 

‘Govt utilised record 39pc development budget in eight months’

The Pakistan Today (Mar 04, 2020)
ISLAMABAD: Planning, Development and Special Initiatives Minister Asad Umar said on Wednesday that the government had witnessed a record 39 per cent utilisation of the Public Sector Development Program (PSDP) during the first seven months of the current fiscal year (FY20). “This is the highest recorded utilisation of the development budget in the past six... Read More
 

NA body for paying honoraria to employees served during budget sessions

The Business Recorder (Mar 03, 2020)
ISLAMABAD: The National Assembly Standing Committee on Government Assurance Monday directed all departments to pay honoraria to their employees who served during the budget sessions, industriously, in the Parliament House. The committee further directed that honoraria may be given to the employees of Pakistan Television (PTV), Radio Pakistan and Associated Press of Pakistan... Read More
 

IMF putting Pakistan on path to recovery, says SBP governor

The Pakistan Today (Mar 03, 2020)
ISLAMABAD: State Bank of Pakistan (SBP) Governor Dr Reza Baqir said on Tuesday that the International Monetary Fund (IMF) was the government’s partner in reforming the country’s current economic system. In a briefing to the Public Accounts Committee (PAC), which was chaired by Rana Tanvir Hussain, the SBP governor said that Pakistan’s relationship with IMF was based on... Read More
 

Pakistan’s economy moving towards growth, says finance adviser

The Pakistan Today (Mar 02, 2020)
ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh on Monday said that the outlook for the economy was strong and pick up in exports and remittances were supporting growth momentum. “In December 2019, the large scale manufacturing output expanded by 16 per cent on month-on-month basis, indicating that growth was starting to... Read More
 

Economic conditions have improved as compared to past: SBP governor

The Pakistan Today (Mar 02, 2020)
KARACHI: State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Monday said that the economic conditions are better in many areas as compared to the past. The country’s economy was not in strong position back then as the reserves and exchange rates were falling. Addressing an event of English Speaking Union held at a local hotel, he said that the economic conditions are better because of the... Read More
 

In Pakistan, stocks battered as index plummets 5.6%

The Express Tribune (Mar 01, 2020)
KARACHI: The stock market witnessed a brutal hammering as the index plunged by a whopping 2,266 points or 5.6% to 37,984 points in the outgoing week largely due to the coronavirus outbreak, which threatened to become a pandemic, among other developments hampering the economy. “The local equity bourse depicted the biggest weekly decline since June 16, 2017 in points,” stated... Read More
 

Happy IMF news but only just

The Dawn by Abbas Nasir (Mar 01, 2020)
This week’s ‘staff level’ agreement announced by the International Monetary Fund with the government of Pakistan may have surprised many economic experts as it is no secret that there still exists a wide gulf between the country’s targeted and realised tax collection. The resultant budget deficit stands at 7.4 per cent of the... Read More
 

Financial Sector in the Budget Skating on Thin Ice?

The Economic and political weekly (Feb 29, 2020)
Metaphorically speaking, going through the Union Budget 2020–21 is like reading Gabriel García Márquez’s 1985 classic novel Love in the Time of Cholera, where optimism is seen to coexist with physical diseases. After all, the term “slowdown” is conspicuous by its absence in one of the longest budget speeches in recent history, so much so that in making sense of the myriad of things that the budget... Read More
 

EU to provide €13 million as Public Financial Management Support

The Nation (Feb 29, 2020)
ISLAMABAD: European Union agreed to provide €13 million to Pakistan to help improve its macro-fiscal policies and budget preparations, said an announcement issued on Friday. The signing ceremony of Financing Agreement on Public Financial Management Support Programme-II (PFM-II)” between the government of Pakistan and the European Union was held at Economic Affairs Division on Friday. Federal... Read More
 

E-Pay Punjab fetches Rs1b revenue in less than 5 months

The Nation (Feb 28, 2020)
LAHORE - EPay Punjab, the first ever government payment aggregator for citizen facilitation and ease of business, has collected over Rs1 billion revenue from multiple levies since its launch five months back. This was informed in a progress review meeting of Punjab Information Technology Board presided over by Chairman PITB Azfar Manzoor on Thursday. Director... Read More
 

EU grants €13 million to Pakistan to improve fiscal policies

The News (Feb 28, 2020)
The European Union agreed to provide €13 million grant to Pakistan improve its fiscal policies and budget preparations, reported Geo News on Friday. The agreement was signed in Islamabad in the presence of Minister for Economic Affairs Hammad Azhar and the grant will be provided under EU’s Public Financial Management Support Programme. Secretary Economic Affairs Division, Syed... Read More
 

Circular debt increases to Rs1.9tr

The Nation (Feb 27, 2020)
Islamabad -Pakistan’s circular debt has increased to over Rs 1.9 Trillion, while the distribution companies are unable to overcome technical and non-technical losses which are burdening the national exchequer by an additional Rs40-50 Billion annually, said OICCI Energy Report 2019. The Overseas Investors Chamber of Commerce and Industry (OICCI) has launched its ‘OICCI ... Read More
 

FBR asked to incorporate PSA proposals in next budget

The Pakistan Today (Feb 27, 2020)
ISLAMABAD: To address grievances and put genuine demands of the Pakistan Stock Exchange Stockbrokers Association (PSA) in the next fiscal budget, the Policy Board of the Securities and Exchange Commission of Pakistan (SECP) has recommended to communicate with the Federal Board of Revenue (FBR), a local newspaper reported. Following the decision of... Read More
 

PPL earnings drop 19% to Rs24.4 billion

The Express Tribune (Feb 26, 2020)
KARACHI: Pakistan Petroleum Limited’s (PPL) profit dropped 19% to Rs24.4 billion in the half year ended December 31, 2019, dented by higher operating and exploration expenses. The company had announced earnings of Rs30.3 billion in the same period of previous year, according to a notice sent to the Pakistan Stock Exchange on Tuesday... Read More
 

The Trouble With India’s New Budget

The Diplomat by Alok Sheel (Feb 26, 2020)
India’s 2020–21 federal budget was presented on February 1 against the backdrop of six successive quarters of declining growth. Continuing frictions in the financial system have clogged the channels of monetary policy. This means that fiscal policy and structural reforms now have a critical role in stimulating the slowing economy and putting it back on a high growth... Read More
 

Planning Commission authorises release of Rs456.37b for development projects

The Nation (Feb 25, 2020)
ISLAMABAD - The Federal government has so far authorised release of Rs 456.37 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2019-20, as against the total allocation of Rs701 billion. Under its development programme, the government has authorised release of an amount of Rs 191.26 billion for federal ministries... Read More
 

World Bank delays two of Pakistan's budgetary support loans

The Express Tribune (Feb 25, 2020)
ISLAMABAD: The World Bank has delayed the approval of two budgetary support loans worth $750 million due to lack of progress on some of the agreed prior conditions, including disagreement among provinces over harmonisation of the general sales tax (GST) on services. The postponement would also delay the restoration of Pakistan’s budgetary support, which had... Read More
 

High time for Pakistan, Turkey to boost trade

The Express Tribune (Feb 24, 2020)
KARACHI: It is time for Pakistan and Turkey to boost bilateral trade and both the countries want to do this for their own reasons. Turkey wants to export more to other countries to depend less on its existing main export markets ie Germany, the UK, the UAE, Iraq and the United States. Turkey is craving for stronger influence in the Middle East and if it continues to earn the bulk of export dollars from the... Read More
 

Sri Lanka mini-budget supplementary allocations were not opposed, only debt hike: opposition

The Economy Next (Feb 24, 2020)
ECONOMYNEXT – Sri Lanka’s opposition did not oppose increases in spending on several activities in a recent supplement to the vote-on-account but only the raising of the debt ceiling, opposition leader Sajith Premadasa said. He claimed that the government asked for a large increase in debt of because taxes were suddenly cut and it ran out of money. “The opposition was willing to support ... Read More
 

Pakistan’s economy ‘on the path to recovery’: Credit Suisse

The Pakistan Today (Feb 23, 2020)
KARACHI: Pakistan’s fundamentals have ‘improved significantly’ but the ‘challenges’ still lie ahead, Credit Suisse- a Swiss financial services firm- says in its latest report. Titled “Pakistan: On the path to recovery”, the firm credits ‘assistance from the International Monetary Fund (IMF)’, ‘fiscal consolidation’, and ‘much needed reforms’ for the improvement... Read More
 

ICCI calls for reducing taxes on furniture industry in next budget

The Business Recorder (Feb 23, 2020)
ISLAMABAD: Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce and Industry has called upon the government to reduce taxes on furniture industry in the forthcoming budget that would facilitate its better growth and enhance exports. He said this while addressing a delegation of Islamabad Furniture Association that visited ICCI led by its... Read More

External public debt inflows surge to $6b in Jul-Jan

The Express Tribune (Feb 22, 2020)
ISLAMABAD: Gross external public debt inflows surged to $6 billion in first seven months of the current fiscal year – higher by 138% – on the back of major inflows from the Asian Development Bank (ADB) and China – the two creditors that are not toeing Washington’s line. Inflows from China and the ADB have helped Pakistan meet its... Read More

EU budget summit ends with no deal

The Pakistan Today (Feb 22, 2020)
BRUSSELS: An EU summit called to set the bloc’s next seven-year budget ended in impasse late Friday, riven by competing groups among the 27 member states and pressure to fill a funding gap left by Brexit. Differences were “still too great to reach an agreement,” German Chancellor Angela Merkel told reporters at the end of the two days of talks in Brussels. No date had yet been set for another summit... Read More

Local bodies directed to submit budget proposals

The Express Tribune by Qaiser Shirazi (Feb 21, 2020)
RAWALPINDI: After the promulgation of the new local government system in Punjab, the Provincial Minister for Local Government and Community Development (LGCD) Basharat Raja on Thursday directed the newly delimited local bodies across the province to prepare and submit their budget proposals by the end of this month... Read More

Indian Budget 2020-21 an analysis

The India Post by Nita Dhruva (Feb 21, 2020)
One more budget of the Modi Government can be viewed as a bold and pragmatic budget of US$ 5 trillion economies taking the country on the right path. The budget has kept the basic macro strategy intact. On the one hand, it provides thrust to the rural economy; on the other, it focuses on simultaneously enabling measures to transform India. It seeks to remove structural bottlenecks that were hampering.... Read More
 
Budget Study Centre   Issue 62 March 20, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Federal govt releases Rs 12.13bn for CPEC projects under PSDP 2019-20

The Nation (Mar 20, 2020)
The government has so far released development funds of over Rs 12.13 billion for various development projects of China Pakistan Economic Corridor (CPEC) under its Public Sector Development Programme (PSDP) 2019-20. According to latest data issued by the ministry of Planning on Thursday, the government had allocated Rs 18 billion for around 20 projects of CPEC for the year 2019-20... Read More
 

Missing points in budget strategy paper

The Business Recorder (Mar 20, 2020)
Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan waxed eloquent as usual about the finance ministry's many achievements as she explained its Budget Strategy Paper for 2020, duly approved by cabinet, to the press, yet there was precious little about new measures to meet growth and revenue challenges over the rest of the year. The Paper... Read More
 

Moody’s expects high indebtedness, fund paucity to hurt Pakistan’s economy

The News (Mar 19, 2020)
KARACHI: Rating agency Moody’s on Wednesday painted a gloomy picture for struggling Pakistan’s economy amid coronavirus spread, saying high debt burden and weaker fiscal balances would hamstring the country’s ability to combat the pandemic. Moody’s Investors Service said Pakistani government might be “constrained by already high indebtedness... Read More
 

Rs7.6tr budget outlay set for next fiscal year 2020-21

The Pakistan Today (Mar 18, 2020)
ISLAMABAD: Overall Rs7.6 trillion federal budgetary outlay has been set for next fiscal year 2020-21 as the Prime Minister Imran Khan-led government of Pakistan Tehreek-e-Insaf (PTI) approved Budget Strategy Paper 2020-21, local media reported. The PTI government will present its third federal budget in June. The federal cabinet approved the strategy paper the other day in which... Read More
 

Budget strategy paper approved by cabinet

The Business Recorder (Mar 18, 2020)
The Special Assistant to the Prime Minister on Information and Broadcasting, Dr Firdous Ashiq Awan, on Tuesday said that the cabinet had approved budget strategy paper for the financial year 2020. Briefing the media regarding the Federal Cabinet meeting, she said the Advisor on Finance Dr Abdul Hafeez Shaikh, while giving a briefing on the budget strategy paper,... Read More
 

SBP’s rate cut will not help improve country’s economy: Hafeez Pasha

The Pakistan Today (Mar 18, 2020)
Former Federal Finance Minister Dr Hafeez Pasha has said the State Bank of Pakistan (SBP) has not cut the policy rate keeping in view the country’s actual economic situation and the coronavirus crisis. He said it appeared that the central bank’s focus to improve poor economic outlook of the country was even below satisfactory, as its recent projection of 3 per cent annual growth was beyond reality... Read More
 

Major relief from IMF: Coronavirus expenses not to be part of budget deficit

The News (Mar 17, 2020)
ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh on Monday said the IMF had agreed to not include the expenditures incurred on combating coronavirus as part of budget deficit for the current fiscal year 2019-20. Talking to reporters outside the Q-Block (Finance Ministry) at the Pak Secretariat, Dr Shaikh said Pakistan was able to get a major relief ... Read More
 

ECNEC approves six projects worth over Rs100bn

The Pakistan Today (Mar 16, 2020)
ISLAMABAD: The Executive Committee of National Economic Council (ECNEC) on Monday accorded approval to more than Rs100-billion worth six development projects, including Winder Dam and Kachhi Canal. The approvals came at a meeting chaired by Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh at the Cabinet Division. The Winder Dam project, which is to ... Read More
 

ICCI expects business friendly budget

The News (Mar 16, 2020)
Islamabad: President Islamabad Chamber of Commerce and Industry (ICCI), Muhammad Ahmed Waheed has expressed the hope that upcoming budget for the fiscal year (2020-21) would be business-friendly, aiming at promoting conducive business and investment environment. In an interview with this agency, the ICCI President said that low cost of inputs and compatible... Read More
 

Door left ajar for IMF-Islamabad agreement

The Express Tribune (Feb 15, 2020)
ISLAMABAD: In a first serious challenge to keep the $6 billion extended fund facility on track, Pakistan and the International Monetary Fund on Friday could not reach a staff-level agreement on contentious issues but kept the doors open for the possibility of attaining one in coming days. The issues that stopped both the parties from reaching an agreement include the need for a mini-budget... Read More
 

Govt borrowing: State Bank of Pakistan claims contradict actual numbers

The Express Tribune (Mar 15, 2020)
ISLAMABAD: The State Bank of Pakistan (SBP) has told the Monetary Policy Committee that the federal government prefers shorter term borrowings to finance its budget deficit – a claim that appears contrary to the facts. The central bank’s claim bring into question credibility of the data that is used by the MPC for making the most critical decision about the country’s monetary policy... Read More
 

Foreign outflow from debt market crosses $1b

The Express Tribune (Mar 14, 2020)
KARACHI: The outflow of foreign investment from rupee-based government debt securities has crossed the $1 billion mark as some investors have pulled out in panic by selling immature bonds and T-bills to go for safety in a melting global economy. Most of the divestment was recorded in the past one month “A partial recovery of the rupee against the US dollar in inter-bank and open... Read More
 

Rabbani calls for fianlisation of NFC Award before budget

The News (Mar 13, 2020)
ISLAMABAD: Former chairman Senate Mian Raza Rabbani on Thursday demanded of the government to finalise the National Finance Commission (NFC) Award before the presentation of the Annual Federal budget. “The briefing of the Finance Ministry to the Standing Committee of Finance of the National Assembly was a page out of IMF conditionalities, which this government... Read More
 

FD assures Sectt employees of pay raise in next budget

The Business Recorder (Mar 13, 2020)
LAHORE: Regretting ‘unfair’ treatment of religious schools by the government, Jamaat-i-Islami Emir Senator Sirajul Haq has demanded allocation of educational funds for them in the annual budget. Speaking to students of Darul Uloom Mansoora here on Thursday, he said the rulers were bent upon taking full control of religious schools on the alleged dictation of the IMF and western powers. To achieve the ... Read More
 

PSDP spending to remain 14% less than budget

The Express Tribune (Mar 12, 2020)
ISLAMABAD: The Public Sector Development Programme (PSDP) spending will remain around Rs600 billion – 14% less than the budget – and there was no room for increasing salaries of the government employees before budget, the top mandarin of finance ministry briefed a parliamentary panel on Wednesday. It will be the second consecutive year when the Pakistan Tehreek-e-Insaf (PTI) ... Read More
 

Mid-term budget review report

The Business Recorder (Mar 12, 2020)
The government's mid-year review report tabled before the National Assembly was dated as it contained data only for the first six months of the year while data for major macroeconomic indicators for the first eight months of the year is available on different websites including the Pakistan Bureau of Statistics, State Bank of Pakistan, Commerce Ministry, Federal Board of Revenue, Power Division whose ... Read More
 

KP development projects in a limbo due to shortage of funds

The Pakistan Today (Mar 11, 2020)
PESHAWAR: Khyber Pakhtunkhwa’s (KP) Home Affairs Department could not initiate work on some of the key projects of its annual development programme due to the unavailability of funds that were supposed to be provided by international agencies. According to documents of KP Finance Department, the department did not release even a single rupee from... Read More
 

Senate body rejects to approve “The Tax Laws (Amendment) Bills 2019” as money bill

The Nation (Mar 11, 2020)
ISLAMABAD: The Senate Standing Committee on Finance and Revenue on Tuesday has rejected to approve “The Tax Laws (Amendment) Bills 2019” as a money bill. The committee, which was chaired by Senator Farooq Hamid Naek, has discussed “The Tax Laws (Amendment) Bills 2019” in detail. Chairman committee inquired whether the said Bill deemed to be money Bill as provided in... Read More
 

'PTI to impose extra Rs900b taxes next year'

The Express Tribune (Mar 10, 2020)
LAHORE: Former finance minister Dr Hafiz Pasha has said that the government will impose more taxes worth Rs900 billion in the upcoming budget under an ongoing deal with the International Monetary Fund (IMF). “The government has assured the IMF that it will impose Rs700 billion in additional taxes in the first year, Rs 900 billion in the second year and Rs1,200 billion in the ... Read More
 

Govt negotiating ‘mini budget’ with IMF: Rabbani

The News (Feb 11, 2020)
ISLAMABAD: Former chairman Senate Senator Mian Raza Rabbani on Monday said that a ‘mini budget’, being negotiated during talks with IMF, would eventually lead to anarchy. Reacting to media reports, Rabbani said the government was trying to renegotiate downward the collection targets that form a part of IMF agreement, which was signed behind... Read More
 

FDI surges to $404.1m in power sector in Jul-Jan FY20

The Express Tribune (Mar 09, 2020)
ISLAMABAD: Pakistan has witnessed a sizeable growth in fresh foreign direct investment (FDI) in projects related to power production in recent months. The inflow of FDI surged to $404.1 million in first seven months of the current fiscal year (July 2019-Jan 2020), whereas, during the same period last year negative growth was witnessed, according to the data issued by the Board of Investment ... Read More
 

UK to deliver post-Brexit budget under virus cloud

The Pakistan Today (Mar 08, 2020)
LONDON: Britain unveils its first post-Brexit budget on Wednesday and analysts expect Prime Minister Boris Johnson to press ahead with major spending on infrastructure, despite the economic fallout from the coronavirus. Finance minister Rishi Sunak, who will present the budget after his predecessor Sajid Javid resigned unexpectedly last month, is also scheduled to outline ... Read More
 

Punjab Police budget scaling up: Basharat

The Pakistan Observer (Mar 08, 2020)
Law minister Punjab Raja Basharat has said “we cannot go to accountability without improving law and order situation. Talking to media men here in Director General Public Relations (DGPR) Saturday he said Punjab government is bringing reforms in law enforcement agencies. He told the journalists Punjab police have less resources than other countries police ... Read More
 

COVID-19 may wreak havoc on Pakistan’s economy: ADB

The Pakistan Today (Mar 07, 2020)
The Asian Development Bank (ADB) has predicted that the coronavirus (COVID-19) plague can cause losses to the Pakistan economy to the tune of $16.387 million to $4.95 billion, or 0.01 to 1.57 percent of gross domestic product (GDP) on account of agriculture, business and trade, tourism and health. The analysis report titled: ‘The Economic Impact of the COVID-19... Read More

Imran says impossible to develop cities from provincial funds

The Pakistan Today (Mar 07, 2020)
ISLAMABAD: Prime Minister Imran Khan on Saturday said that it was impossible to develop cities from the funds that were provided to provinces. The prime minister was addressing an event in Karachi via video link from the federal capital. PM Imran was scheduled to visit Karachi, but he had to call it off due to bad weather. “Karachi’s development means Pakistan progresses,” said the... Read More

Foreign exchange SBP reserves jump $166m to $12.76b

The Express Tribune (Mar 06, 2020)
KARACHI: The foreign exchange reserves held by the central bank increased 1.32% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On February 28, the foreign currency reserves held by the SBP were recorded at $12,757.5 million, up $166 million compared with $12,591.5 million in the previous week. The central bank cited no reason for the increase in... Read More

14 new universities, Punjab to get 35% more share in education budget 2020

The Daily Times (Mar 06, 2020)
The annual government budget for the fiscal year 2020-21 will be announced by the Pakistani government in June 2020. The budget will be presented in session of the National Assembly.14 new universities including 9 from southern Punjab will be established with the increase in education budget for Punjab. Sources revealed that South Punjab will get major chunk of new budget. Almost 60% for new... Read More
 
Budget Study Centre   Issue 60 Feb 20, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Govt budget for social sector insufficient

The Nation (Feb 20, 2020)
KARACHI-President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday said that runaway inflation has underlined the importance of corporate social responsibility (CSR). Majority of the... Read More
 

EU leaders to face off in ‘very tough’ budget summit

The Pakistan Today (Feb 20, 2020)
PARIS: European Union (EU) leaders are to hold a Brussels summit Thursday to set a seven-year budget despite splits between some stingy rich nations, poorer ones wanting to preserve spending and others wanting to fund grand global ambitions. The money tussle, hard-fought at the best of times, is especially problematic this time around because of Britain’s departure from the EU... Read More
 

In Pakistan, FDI surges 66% to $1.56b in Jul-Jan FY20

Express Tribune (Feb 19, 2020)
KARACHI: Pakistan has recorded a notable growth in fresh foreign direct investment in projects related to oil and gas exploration, power production and mobile phone services in recent months. The growth in investment, however, remains low compared to the existing potential as investors anxiously wait for consistency in economic policies before initiating new projects in the country... Read More
 

Comments on Indian Direct Tax Amendments Vide Union Budget 2020-21: Pakistani Parity

The Business Recorder (Feb 19, 2020)
The Parliament of India (hereafter “the legislature") has sought to amend provisions related to direct taxes (hereafter “the proposed amendments") in the Income Tax Act 1961 (hereafter “the Act"), the Prohibition of Benami Transactions Act 1988, and the Finance Act 2013, by virtue of the Finance Bill 2020 (hereafter “the said Bill"). We have... Read More
 

In a first, MoF set to bring ‘mid-year budget review report’ before cabinet

The Pakistan Today (Feb 18, 2020)
ISLAMABAD: The Ministry of Finance will present the country’s first-ever ‘mid-year budget review report’ during the upcoming meeting of the federal cabinet. According to sources privy to this development, the PM on Thursday would chair the cabinet meeting to deliberate upon a 16-point agenda, which included the mid-year budget review report of the fiscal year 2019-20. The parliament... Read More
 

New chancellor Rishi Sunak sticks to 11 March budget date

The Guardian (Feb 18, 2020)
The budget will go ahead on 11 March, the Treasury said on Tuesday, forcing the new chancellor, Rishi Sunak, to piece together a fresh tax and spending programme over the next three weeks. A delay was expected after Sunak’s predecessor, Sajid Javid, abruptly quit his job after a demand by Boris Johnson that he sack his advisers and replace them with a team jointly managed with No 10... Read More
 

Ups, downs and other major highlights from Trump’s 2021 budget request

The Federalnewsnetwork.com (Feb 17, 2020)
Like previous years, President Donald Trump’s most recent budget request includes many familiar cuts, eliminations and proposals for civilian agencies in 2021. The president’s request includes some $20 billion in agency program reductions and $28 billion in  program eliminations. It’s unclear how these proposed eliminations and cuts will fare in Congress, which has largely ignored... Read More
 

Union Budget 2020 disappoints on GST relaxation and education loan bracket, say experts

The India Today (Feb 17, 2020)
Union Finance Minister Nirmala Sitharaman introduced the first budget of the year 2020 in the Lok Sabha on February 1, earmarking Rs 99,300 crore for the Education sector in 2020-21 and Rs 3,000 crore for Skill Development. It shows that the government is inclined towards skill development and creating more job opportunities for the youth of the country. Budget 2020... Read More
 

Singapore plans massive budget stimulus to counter virus threat

The Japan Times (Feb 16, 2020)
SINGAPORE/HONG, KONG – Singapore is set to deliver a strong budget this week to offset the damage to the economy from the coronavirus, with analysts predicting the biggest deficit in almost two decades. The fiscal gap may widen to 1.5 percent of gross domestic product in the year beginning April 1, the highest since the 1.7 percent shortfall recorded in the 2001 financial year, according... Read More
 

Provincial govts record budget surplus of Rs323.7b in first half

The Nation (Feb 16, 2020)
ISLAMABAڈ: The four provinces jointly provided a massive budget surplus of Rs323.7 billion to the Centre during the first half (July-December) of the ongoing financial year. The four provincial governments recorded budget surplus of Rs323.7 billion during July to December period of FY2020, as their expenditures remained at Rs1359.7 billion as compared to the revenues of Rs1683.4... Read More
 

India relaxes fiscal deficit, cuts taxes to spur growth

The News (Feb 01, 2020)
MUMBAI: India relaxed its fiscal deficit target Saturday, raising spending and slashing taxes as it seeks to attract foreign investment and increase consumption in the wake of a prolonged economic slowdown. Finance Minister Nirmala Sitharaman announced the changes as part of the country´s annual budget in parliament, a day after official data showed that Asia´s third-largest economy grew five... Read More
 

Door left ajar for IMF-Islamabad agreement

The Express Tribune (Feb 15, 2020)
ISLAMABAD:  In a first serious challenge to keep the $6 billion extended fund facility on track, Pakistan and the International Monetary Fund on Friday could not reach a staff-level agreement on contentious issues but kept the doors open for the possibility of attaining one in coming days. The issues that stopped both the parties from reaching an agreement include the need for a mini-budget... Read More
 

Despite massive shortfall in tax collection, budget deficit under control

The Nation (Feb 15, 2020)
ISLAMABAD                    -                The government has successfully controlled Pakistan’s budget deficit which was recorded at Rs994.7 billion during first half (July to December) of the current fiscal year despite massive shortfall in tax collection.  The country’s expenditures were recorded at Rs4226.6 billion as compared to the revenues of Rs3231.9 billion in July-December... Read More
 

Power tariff, mini-budget sticking points in talks with IMF

The Express Tribune (Feb 14, 2020)
ISLAMABAD: Pakistan and the International Monetary Fund on Thursday extended review talks for at least one more day after both the sides failed to break a deadlock over the contentious issue of increase in electricity tariffs, mini-budget and Chinese loans. Talks between Pakistan and IMF had started on February 3 and were planned to end on February 13 (Thursday). But neither the finance ministry nor the IMF... Read More
 

US govt facing budget deficit of Rs15,450b every month

The News (Feb 14, 2020)
WASHINGTON: The sea of red ink is getting deeper and deeper in Washington, with the federal government already racking up a budget deficit that is averaging close to $100 billion (Rs15,450 billion) a month. Treasury Department data released Wednesday show the shortfall at $389.2 billion in the first four months of fiscal 2020. That’s a 25% gain over the same period... Read More
 

House passes 2020 budget bill

The Bangkok Post (Feb 13, 2020)
The House of Representatives has voted 257-1 with three abstentions to pass the 2020 budget bill, but not without a setback. The vote on the second reading, which calls for a vote on each section, had to be redone after the meeting lacked a quorum on Section 6 on the contingency budget. The meeting consisted of coalition MPs since the opposition earlier decided not to attend the meeting... Read More
 

Pakistan, IMF agree not to introduce mini-budget

The News (Feb 13, 2020)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) had agreed that there would be no mini-budget or a reduction in the tax collection target, sources told Geo News. The sources further said Pakistan was not to raise the tax rate until June 2020 or reduce its tax collection target, as talks between Pakistan and the IMF concluded here on Wednesday... Read More
 

India’s Budget 2020: Needs a few course corrections

The Rahnuma (Feb 12, 2020)
(RAHNUMA) In her marathon 2 hours and 46 minutes speech introducing India’s 2020 budget, Finance Minister Nirmala Sitharaman painted an optimistic picture of the Indian economy. She stated at the outset that her budget’s goal is to boost “incomes and enhance… purchasing power” of the people of India. “Only through higher growth can we achieve that and have our youth gainfully... Read More
 

Pakistan, IMF agree not to introduce mini budget

The Dunyanews.tv (Feb 12, 2020)
ISLAMABAD (Dunya News) – A delegation of the International Monetary Fund (IMF) held a meeting on Wednesday and mutually decided not to introduce a mini-budget. According to sources, the talks agreed that there will be no increase or reduction in tax target until June this year. Finance Ministry sources said that Pakistan will make every effort to achieve the tax target. It also... Read More
 

Inside Trumps upcoming $4.8 trillion budget

The Hill.com by Alexandra Kelley (Feb 11, 2020)
President Trump’s forthcoming budget due today is expected to allocate $4.8 trillion toward defense programs and veterans and cut $4.4 trillion over the next decade from social programs and foreign aid. According to the Wall Street Journal, an administration source said President Trump’s plan will increase military spending by 0.3 percent to $740.5 billion for the 2020... Read More
 

Govt negotiating ‘mini budget’ with IMF: Rabbani

The News (Feb 11, 2020)
ISLAMABAD: Former chairman Senate Senator Mian Raza Rabbani on Monday said that a ‘mini budget’, being negotiated during talks with IMF, would eventually lead to anarchy. Reacting to media reports, Rabbani said the government was trying to renegotiate downward the collection targets that form a part of IMF agreement, which was signed behind... Read More
 

The budget’s stab at trickle-down economics

The livemint.com (Feb 10, 2020)
This year’s budget speech was the lengthiest on record. It went on for so long that the American actor Pamela Anderson could have had a wedding after Nirmala Sitharaman began the address and filed for divorce before the finance minister’s concluding remarks. Few had believed the Baywatch star’s latest relationship would last, given the way her previous marriages... Read More
 

IMF talks to focus on mini-budget possibility, hike in electricity, gas tariffs

The Dunyanews.tv (Feb 10, 2020)
ISLAMABAD (Dunya News) – As talks between an International Monetary Fund’s (IMF) delegation and Pakistan begins on Monday after a two-day break to evaluate Islamabad’s performance for the third tranche of $450 million of the $6 billion bailout package, suggestions for presenting a new mini-budget or possibility of imposition of new taxes... Read More
 

Bilawal condemns cuts in higher education budget

The Pakistan Today (Feb 09, 2020)
ISLAMABAD: Pakistan People’s Party chief Bilawal Bhutto Zardari has condemned cuts in the higher education budget by the Pakistan Tehreek-e-Insaf (PTI) government compelling the public sector universities to take loans from the private sector to run their affairs. In a statement, the PPP chairman expressed grave concern over the fact that 104 public universities in the country were passing... Read More

Fiscal deficit target jacked up to 7.5 percent of GDP

The Nation (Feb 09, 2020)
ISLAMABAD: The government has revised upwards the fiscal deficit target to 7.5 percent of the GDP after reducing the tax collection target for ongoing fiscal year. Ministry for Finance recently informed the parliament that the government would keep the budget deficit at 7.5 percent of the GDP (Rs3282.5 billion). Earlier, in budget for 2019-2020, the government had projected... Read More

Sri Lanka misses 2019 budget deficit, forex reserve targets in IMF program

The Economy Next (Feb 08, 2020)
ECONOMYNEXT – Sri Lanka has missed the budget deficit and foreign reserves targets in a deal with the International Monetary Fund where in built money and foreign exchange policies triggered a currency collapse and an output shock, which hit state revenues. “Preliminary data indicate that the primary surplus target under the program supported by... Read More

PMA criticises govt for neglecting health, meagre health budget

The Express Tribune (Feb 08, 2020)
KARACHI: Members of the Pakistan Medical Association (PMA) pointed out on Friday that the government has been neglecting the health sector despite population growth, increasing the burden on health facilities.Keeping in view the worsening state of health in the country, they called for allocating at least six per cent of the gross domestic product (GDP) to the health budget, in line with the World Health... Read More

IMF asks to fully utilise PSDP budget

The Pakistan Today (Feb 07, 2020)
ISLAMABAD: The International Monetary Fund (IMF) has asked the federal government to fully utilize the current fiscal year development budget under the Public Sector Development Program (PSDP).  Sources told Pakistan Today that the fund’s delegation met with the officials of the Ministry of Planning, Development and Special Initiatives on Friday and was... Read More

No mini-budget in the offing, says minister

The Pakistan Today (Feb 07, 2020)
Economic Affairs Minister Hammad Azhar has categorically dispelled the impression that the incumbent government has any plan to introduce a mini-budget. Talking to a private news channel, the minister said sugarcane and other crops were damaged due to issues pertaining to climate change. “This was one of the major reasons behind recent food inflation.” However, he said, the... Read More
 
Budget Study Centre   Issue 59 Feb 06, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Pakistan, IMF consider additional tax measures for mini-budget

Express Tribune (Feb 06, 2020)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) on Wednesday discussed additional tax measures for the mini-budget amid questions over realism of the revenue potential due to lower-than-expected receipts against Rs735 billion budgetary measures. The net impact of additional Rs735 billion budgetary measures was only Rs235 billion or 31% during the first half (July-December)... Read More
 

Govt releases Rs429.17 billion for development projects

The Nation (Feb 06, 2020)
ISLAMABAD-The Federal government has so far authorised release of Rs 429.17 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2019-20, as against the total allocation of Rs 701 billion. Under its development programme, the government has released an amount of Rs 190.87 billion for federal ministries, Rs136.68,... Read More
 

India: ‘Opposition misleading people on budget

The aa.com (Feb 05, 2020)
NEW DELHI, Indian Prime Minister Narendra Modi on Tuesday cautioned against attempts being made to mislead people on the union budget. Opposition and experts have been criticizing the budget unveiled last Saturday, saying it lacked boldness and foresight. Former Finance Minister P. Chidambaram said the budget did not offer concrete solutions to the challenges facing the... Read More
 

Bilawal demands revisiting terms of IMF bailout package

The Express Tribune (Feb 05, 2020)
KARACHI: PPP Chairman Bilawal Bhutto Zardari on Tuesday announced that his party would launch a movement from next month against the government’s economic policies amid the unprecedented rise in inflation, poverty and unemployment and the downward slide in growth rate. He blamed the International Monetary Fund’s (IMF) $6 billion bailout package for... Read More
 

Pakistan asks IMF to reduce tax collection target

The Express Tribune (Feb 04, 2020)
ISLAMABAD: Pakistan has requested the International Monetary Fund (IMF) to further reduce tax collection target. However, a mini budget of nearly Rs200 billion will remain inevitable to collect even less than Rs5 trillion in this fiscal year. In first face-to-face meeting between Pakistan and the IMF for second review talks, the government... Read More
 

Pakistan, IMF start talks to review $6bn programme

The Daily Times (Feb 04, 2020)
The International Monetary Fund (IMF) staff mission has started discussion here with the government authorities to review Pakistan’s performance under its US $6 billion extended fund facility. Advisor to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh told media on Monday that the talks will continue until February 14, adding that a successful... Read More
 

‘HEC to get Rs20 billion more budget to meet educational challenges’

The News (Feb 03, 2020)
Islamabad: The Higher Education Commission (HEC) will get Rs20 billion more budget from the government aimed at to invigorate and to strengthen the higher educational institutions, besides improving quality education across the country. According to the official sources, the amount will be allocated on the request of Chairman... Read More
 

Budget 2020-21: India to modernise its army with Rs2,393 billion this year

The News (Feb 03, 2020)
LAHORE: Indian government's $428 billion budget for fiscal year 2020-21 has been announced at a time when the country’s economy is stuck in its biggest economic slump in more than a decade, though the economic wizards in New Delhi are optimistic that the country's economic growth will rebound and hit a rather promising 6 per cent to 6.5 per cent mark... Read More
 

Left defenceless: Budget allocation for defence lowest since Indo-China war

The India Today (Feb 02, 2020)
The Defence Ministry's welfare component, defence pensions, now loom large over the money it spends on the armed forces. While Finance Minister Nirmala Sitharaman did not mention the defence budget in her speech, Budget papers show the total defence budget grew by 6%. The defence pension bill, on the other hand, grew by 13%. The pension bill hiked from Rs 1.17 lakh crore to Rs... Read More
 

Govt borrowed Rs4.11tr to finance budget deficit, clarifies ministry

The Pakistan Today (Feb 02, 2020)
ISLAMABAD: Challenging the media reports of Rs11.61 million borrowings, the federal government clarified on Sunday that it had borrowed only Rs4.11 trillion in the last 15 months to finance budget deficit. According to a news release issued by the Ministry of Finance, the figure has been released as per the Finance Division’s policy to lay before the National Assembly the Debt Policy... Read More
 

India relaxes fiscal deficit, cuts taxes to spur growth

The News (Feb 01, 2020)
MUMBAI: India relaxed its fiscal deficit target Saturday, raising spending and slashing taxes as it seeks to attract foreign investment and increase consumption in the wake of a prolonged economic slowdown. Finance Minister Nirmala Sitharaman announced the changes as part of the country´s annual budget in parliament, a day after official data showed that Asia´s third-largest economy grew five... Read More
 

FBR revenue increases 17pc in Jan; returns surge 40pc in 2019

The Pakistan Today (Feb 01, 2020)
ISLAMABAD: The Federal Board of Revenue (FBR) has released tax revenue collection figures for the month of January 2020 as well as the number of returns filed in the Tax Year 2019. According to official data, the provisional collection figures for January 2020 were recorded at Rs320 billion, which was 17pc higher than January 2019. “The figure is likely to increase due to book adjustments... Read More
 

Govt cuts civil budget by Rs 40 billion:  Hafeez Shaikh

The Pakistan Today (Jan 31, 2020)
ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has said the government is striving for an export-led growth in the country as the growth fuelled by consumption instead of investments was not sustainable and durable. “We want quality growth which is led by growth in exports and investments and not driven by mere consumption... Read More
 

Rs72b out of Rs1.2tr budget spent on local bodies: Murad

The Pakistan Observer (Jan 31, 2020)
Staff Reporter Sindh Chief Minister Syed Murad Ali Shah has said that out of Rs1.2 trillion provincial budget Rs870.2 billion are spent on salaries, employees’ retirement benefits, operation expenses, grants, subsidies, including Rs75 billion to local bodies and repair and maintenance. Therefore, there remain a small space for development works, even then the provincial government... Read More
 

Centre urged to announce NFC Award

The Dawn (Jan 30, 2020)
PESHAWAR: A multiparty conference here on Wednesday demanded of the federal government to announce the National Finance Commission Award and pay Rs450 billion dues to the Khyber Pakhtunkhwa government on account of net hydel profit in line with the AGN Qazi formula. A joint declaration issued after the moot said the NFC had to be constituted every five years... Read More
 

AJK PM for increase in defense budget following Indian PM, Army Chief’s provocative statements

The Associated Press of Pakistan (Jan 30, 2020)
MIRPUR (AJK): Jan 30 (APP):Azad Jammu Kashmir Prime Minister Raja Farooq Haider Khan on Thursday called for immediate increase in the defense budget of the country following Indian prime minister and Army Chief’s provocative statements and threats to Pakistan and liberated territory of AJK. Sharing his views on different resolutions moved by the members on the floor of the AJK... Read More
 

US budget deficit forecast to blow out by mid-century

The Financial Times (Jan 29, 2020)
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. The US will rack up budget deficits totalling $13.1tn over the coming... Read More
 

Pak-IMF talks for second review in first week of February

The Nation (Jan 29, 2020)
ISLAMABAD-Pakistan and International Monetary Fund (IMF) would hold talks for the second review under the $6 billion Extended Fund Facility (EFF) bailout package in first week of next month (February) to review the economic situation of the country. Talks for the second economic review would start from February 3, 2020 in Islamabad, which would last for around 11 days. The IMF in July 2019 had... Read More
 

Expectations of a Young Entrepreneur From Union Budget 2020

The Entrepreneur (Jan 28, 2020)
India is home to the world’s largest number of youth, the employable population in millions which joins the workforce every year. While the government of India’s flagship campaigns such as Make in India and Digital India revolutionized the ecosystem for young entrepreneurs in the country in the past few years, the economy’s slowdown in the recent past... Read More
 

Federal govt releases Rs425.7 billion for development projects

The Nation (Jan 28, 2020)
ISLAMABAD-The federal government has so far authorized release of Rs425.7 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2019-20, as against the total allocation of Rs701 billion. Under its development programme, the government has released an amount of Rs187.4 billion for federal ... Read More
 

IMF team to evaluate Pakistan’s 2nd quarter progress from Feb 3

The Pakistan Today (Jan 27, 2020)
ISLAMABAD: The International Monetary Fund (IMF) team would start the evaluation of Pakistan’s second-quarter progress under the $6-billion Extended Fund Facility (EFF) from February 3, 2020. According to sources privy to this development, the IMF team, under the supervision of its Mission Chief for Pakistan, Middle East and Central Asia Ernesto Ramirez... Read More
 

Why the Budget 2020 needs to signal India is open for business | India Today Insight

The India Today (Jan 27, 2020)
Was India the star at the recently concluded World Economic Forum summit in Davos? Did it invite the same intrigue and interest that it did in 2018 when Prime Minister Narendra Modi addressed world leaders and sold them the India story? Clearly, the buzz around India this time around was missing. India's delegation (from the Centre) included a few bureaucrats, led ... Read More
 

Long and short of budget speeches

The Live mint (Jan 26, 2020)
New Delhi/Mumbai: The history of India’s budgets is a history of its economy. If the 1950-51 budget speech by John Mathai signalled a turn towards planning, with the announcement of a Planning Commission under the chairmanship of Prime Minister Jawaharlal Nehru, that of Manmohan Singh would dismantle the planned model in his 1991 budget speech. The budget numbers may divulge... Read More
 

AJK initiates rehabilitation of earthquake affected infrastructure from development budget

The Urdu point (Jan 25, 2020)
MUZAFFARABAD, (APP - UrduPoint / Pakistan Point News - 25th Jan, 2020 ) : Azad Jammu and Kashmir (AJK) government has approved different projects to rehabilitate the infrastructure in Mirpur district affected by last years earthquake from its annual development program to be implemented by the next month, said Prime Minister Raja... Read More

Govt allocated maximum budget for youth

The Pakistan Observer (Jan 25, 2020)
The federal government has decided to expedite the process for distribution of loan cheques under the Prime Minister’s Kamyab Jawan Programme for youth development. PM’s Special Assitant on Youth Affairs Usman Dar has met Punjab Chief Minister Usman Buzdar today and discussed the distribution of loans across the province under the programme... Read More

Call for consultations before budget making

The Dawn (Jan 25, 2020)
LAKKI MARWAT: A civil society body has noted that annual budgeting in Pakistan is mostly done in traditional manner as there has been no visible effort to increase efficiency and transparency in the process of budget making. Speaking at a press conference here on Friday, Community Development Organisation (CDO) executive director Haji Inayatullah Khan said annual budget represented ... Read More

What Can Businessmen Expect From Budget 2020

The Entrepreneur India (Jan 24, 2020)
With the budget right around the corner, there are many expectations of people from different sectors and different walks of life. After what can only be described as a turbulent year, the whole country will be hoping that the Modi government comes up with a few decisions that can help uplift the economy. PM Modi himself has been seen taking an active role in the decision making process in the lead... Read More

Budget expectations: Jalandhar sports goods manufacturers demand uniform GST slabs

The India Today (Jan 24, 2020)
ndia's sports goods manufacturing hub Jalandhar produces nearly 70 per cent of the total sports goods in the country. Nearly 30 per cent of the sports goods manufactured in India are exported to various countries. However, 60 per cent of the goods are consumed by the government and the educational institutions. Only 10 percent are sold in the open market. The Indian Sports industry... Read More
 
Budget Study Centre   Issue 58 Jan 23, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign exchange: SBP reserves jump $146m to $11.7b

Express Tribune (Jan 23, 2020)
KARACHI: The foreign exchange reserves held by the central bank increased 1.26% 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. However, financial assistance from the United Arab... Read More
 

Speedy industrialization imperative for socio-economic development: PM

Pakistan Today (Jan 23, 2020)
DAVOS: Prime Minister Imran Khan on Thursday expressed confidence that good times were ahead for Pakistan as the country had been put on the right economic track with a particular emphasis on industrialisation. Speaking to the prominent business personalities at the Pakistan Breakfast Meet in Davos, he said his vision was to turn Pakistan into a welfare state and ensure development as envisioned... Read More
 

Pakistan received Dh251m aid from UAE in 2019

Pakistan Today (Jan 22, 2020)
ISLAMABAD: Pakistan has been a major beneficiary of aid provided by the United Arab Emirates (UAE), with grants amounting to Dh251 million last year, data from a UAE government report revealed on Wednesday. “The UAE distributed more than Dh28 billion in international aid last year. Pakistan was the eighth most supported nation with grants worth Dh251.10 million disbursed to the country... Read More
 

In Pakistan, foreign loan disbursement jumps 156% to $5.5 billion

Express Tribune (Jan 22, 2020)
ISLAMABAD: Pakistan saw a 156% surge in disbursement of foreign loans that increased to $5.5 billion in first half of the current fiscal year but non-project loans rose to 84% of the total receipts, which could compound Islamabad’s debt sustainability issues. Pakistan has taken another Chinese commercial loan of $700 million from China Development Bank as the government struggles to enhance... Read More
 

Exports increase 25% to Rs1805 billion in first half

Pakistan Today (Jan 21, 2020)
ISLAMABAD: The exports from the country, in rupee term, increased by 24.82 percent during the first half of the current fiscal year compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported. The exports from the country during July-December (2019-20) were recorded at Rs1,805,074 million against the exports of Rs1,446,166 million... Read More
 

India's top 63 billionaires have more wealth than 2018-19 Budget outlay

Business Standard (Jan 21, 2020)
India’s billionaires hold a combined total wealth that is more than the Union Budget outlay.The gap between the top 1 per cent and the bottom 50 per cent of the population just keeps expanding, global non-profit organization Oxfam said in its latest annual report on income inequality. “The combined total wealth of 63 Indian billionaires is higher than the total Union Budget of India... Read More
 

Financial watchdog to get access to taxpayers’ data

Express Tribune (Jan 20, 2020)
ISLAMABAD: The federal government has decided to give the financial monitoring unit of the finance ministry access to the Federal Board of Revenue’s (FBR) inland revenue database to curb money laundering and terror financing in compliance with the action plan of the Financial Action Task Force (FATF). According to documents available with The Express Tribune, the federal government... Read More
 

Pakistan Prime Minister Imran Khan to attend the World Economic Forum in Davos

Gulf News (Jan 20, 2020)
Dubai: Pakistan Prime Minister Imran Khan’s trip to Davos, Switzerland to attend the World Economic Forum (WEF) will cost US$68,000 which is far less than what had been spent by his predecessors. Imran will reach Davos on Tuesday on a three-day official visit to attend the Forum. However, his trip will cost only US$68,000 due to austerity measures his... Read More
 

Digital economy to accelerate development of Pakistan: Chinese expert

The Nation (Jan 19, 2020)
BEIJING        -          There is a great growth potential for Pakistan's e-commerce and e-commerce policy makers will focus on small and medium-sized enterprises (SMEs), improving e-commerce experience, developing online stores, offering job opportunities for youth, promoting exports, and vigorously developing digital economy. At the same time, the State... Read More
 

Global economic prospects and Pakistan

Pakistan Today (Jan 19, 2020)
The World Bank’s gloomy picture:  The World Bank Group recently launched its flagship report, Global Economic Prospects [GEP] 2020: Slow Growth, Policy Challenges in which expected global economic performance in the current year is discussed. Straightaway the Report highlights that trade and investment are expected to rebound after a sluggish 2019, which could result in a slight increase... Read More
 

KP govt departments ask to submit budget proposals

The Nation (Jan 18, 2020)
PESHAWAR: Chief Secretary Dr Kazim Niaz Friday chaired a high level meeting of the secretaries committee which was attended by all administrative Secretaries while KP Finance Minister Taimur Jagra and Additional Chief Secretary Shakeel Qadir attended it in a special capacity. Taimur Jagra apprised the committee about Integrated Budget Call Circular and also issued special... Read More
 

People’ participation in budget making process stressed

The Frontier Post (Jan 18, 2020)
Timergara: The speaker at a seminar demanded of the federal and provincial government to include people aspirations and actual needs  in budget making. The seminar arranged by Citizen’s Network for Budget Accountability (CNBA) on budget making process was held at Balambat here the other day. The CNBA presented a charter of demands and urged the government... Read More
 

Pakistan economy to ‘recover slightly’ from 2021 but reforms critical for growth: UN report

Dawn (Jan 17, 2020)
Pakistan's economy is expected to recover slightly from 2021 onward as increased government revenues from a tax hike allow expanded public investment and as other government reforms required by the International Monetary Fund (IMF) begin to bear fruit, says the latest United Nations report on the state of the world economy. The ‘World Economic Situation and Prospects 2020’... Read More
 

Call for making budget in line with ground realities

Dawn (Jan 17, 2020)
CHITRAL: The Citizen Network for Budget Accountability (CNBA) has presented the charter of demands for making the annual budget of the country a true instrument to reflect the needs and aspirations of the people in real terms. Addressing a press conference here on Thursday, the local delegate of CNBA Imtiaz Hussain said that they were making advocacy for introducing... Read More
 

People’s input sought in budget making

Dawn (Jan 16, 2020)
KOHAT: The government has been asked to incorporate the input of general public in the budget making process and give people an easy access to the details of taxes and expenditures. The demand was made by the representatives of Citizens Network for the Budget Accountability (CNBA), which is a network of 15 civil society organisations working for budget reforms and accountability... Read More
 

Promoting construction sector will boost Pakistan’s economy: P.M Khan

The Newsweek Pakistan (Jan 16, 2020)
Promoting Pakistan’s construction industry will provide a boost to the country’s economy and can create new job opportunities, Prime Minister Imran Khan said on Wednesday. Chairing a meeting about the construction sector in Islamabad, Khan designated its promotion yet another “topmost” priority of his government—he has already designated tourism, children’s... Read More
 

Tax collection shortfall widening with passage of every month

The Nation (Jan 15, 2020)
ISLAMABAD-The government has yet to come with a plan to bridge the massive shortfall in tax collection that had already touched Rs284 billion in first six months (July to December) of the current financial year. Tax collection shortfall is increasing with the passage of every month despite the fact that the government had introduced massive taxation measures in the budget for the current fiscal year. The Federal... Read More
 

Fixing of loopholes in budget making process urged

The Frontier Post (Jan 15, 2020)
TANK: The local organization demanded to fix the loopholes in the budget making process in Pakistan with the aim to ensure fulfillment of all segment of society in the batter manner. According to the details, local organization CDA and CNBA network demanded for responsive budget to the needs of all segments of society and it consist with the requirements of the modern democratic states... Read More
 

Industrialists worried over prospects of tax hike, mini-budget

Pakistan Observer (Jan 14, 2020)
Karachi: President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Monday said the business community is worried over a continued shortfall in tax collections. The revised tax target could... Read More
 

Govt to establish 4 economic zones in all provinces: Asad

Pakistan Today (Jan 14, 2020)
ISLAMABAD: Federal Minister for Planning and Development Asad Uma has said that the current government is determined to establish four economic zones in all provinces. He said that feasibility for ML-1 project has been prepared and some $9 billion would be spent to improve the railway system. Talking to the media on Tuesday, he siad Pakistan will  see... Read More
 

'Investment in Pakistan increased by 78%'

Express Tribune (Jan 13, 2020)
LAHORE: Federal Minister of Economic Affairs Hammad Azhar on Sunday said that investment in the country had increased manifold due to the prudent policies of the Pakistan Tehreek-e-Insaf (PTI) government. Addressing an event in Lahore, he said that PTI government had not only uplifted the ailing economy but also virtually put it on a path of growth... Read More
 

Citizen Network For Budget Accountability (CNBA) Presents Charter Of Demands For Improving Budget Making Process

Urdupoint.com (Jan 13, 2020)
HANGU (APP - UrduPoint / Pakistan Point News - 13th Jan, 2020 ) : Citizen Network for Budget Accountability (CNBA) while expressing reservations over the budget making process in the country presented charter of demands focusing on preparation of the annual budget in line with the aspirations of the local population and their needs. The charter ... Read More
 

Goods transporters’ strike bleeds Sindh economy

Pakistan Today (Jan 12, 2020)
KARACHI: Transporters for goods continued their strike for the seventh day here on Sunday against increasing fines and taxes being slapped on their vehicles on motorways and highways. Due to the strike, industrialists and businessmen are facing immense difficulties in transporting goods to their business destinations whereas... Read More
 

Industrial Growth Imperative For Pakistan’s Economy

Business Recorder (Jan 12, 2020)
While Pakistan has been blessed with many natural blessings like four seasons, good agricultural crops, sea ports, our economy still remain very vulnerable. There are many reasons for our feeble economy, the fundamental reason is our inconsistent policies. We have never made policies which are country specific but it rotates with the change of Governments. Though we consider... Read More

Union Budget 2020

The dqindia.com (Jan 11, 2020)
The Union Budget 2020 is all set to be announced on 1 February 2020, and the Government of India has invited suggestions from citizens regarding the same. “The Union Budget represents the aspirations of 130 crore Indians and lays out the path towards India’s development. I invite you all to share your ideas and suggestions for this year’s Budget on MyGov,” tweeted... Read More

Punjab health budget increased by 27pc: Buzdar

The News (Jan 11, 2020)
LAHORE: Chief Minister Sardar Usman Buzdar has said that 27 percent increase has been made in the health sector budget, along with start of several health projects in remote areas during the current financial year. He was presiding over a meeting of the Specialised Healthcare & Medical Education Department at his office here Friday to review departmental performance and progress... Read More

Low export, inflation, documentation of economy still major challenges

The Nation (Jan 10, 2020)
LAHORE      -        The Pakistan Industrial and Traders Associations Front Chairman Mian Nauman Kabir has called for putting the economy on a balanced and sustainable growth trajectory, addressing the underlying structural vulnerabilities, as low export growth, limited foreign exchange reserves, documentation of economy and higher food inflation are still major challenges to the economy... Read More

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

The Express Tribune (Jan 10, 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. However, financial assistance from the United Arab... Read More
 
Budget Study Centre   Issue 57 Dec 28, 2019

CPDI BUDGET WATCH

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
 

2019 PAKSITAN’S FISCAL CHALLENGES

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

Radio.gov.pk (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
 
Budget Study Centre   Issue 56 Dec 26, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Mini-budget coming?

The News (Dec 26, 2019)
According to the Memorandum of Economic and Financial Policies (MEFP), there are at least two points that indicate a likely revision in budget targets anticipating a dreaded mini-budget in the next couple of months. Dreaded because the public is already under tremendous pressure of inflationary trends ever since the PTI government came to power in 2018. Despite repeated claims and promises... Read More
 

IMF assumes far less-than-expected rupee fall

The Express Tribune (Dec 26, 2019)
ISLAMABAD: New assumptions by the International Monetary Fund (IMF) suggest that the average exchange rate at the end of this fiscal year could be Rs160.64 to a dollar, which is significantly lower than the steep depreciation the global lender had predicted while designing the $6-billion loan programme. The fresh valuation is 6.9% or Rs11.9 less... Read More
 

IMF’s new conditionalities: Mini-budget on the cards

The News by Mehtab Haider (Dec 25, 2019)
ISLAMABAD: After revising downward the FBR’s target from Rs5.5 trillion to Rs5.238 trillion, Pakistan has agreed under the new structural benchmark condition with the IMF to take ‘additional measures’ on the eve of presenting the budget review before parliament by end of February 2020. This indicates that a mini-budget is on the cards if the need arises to achieve the envisaged annual targets for ... Read More
 

Govt seeks nod for Rs170b supplementary budget

The Express Tribune (Dec 24, 2019)
ISLAMABAD: The federal government on Monday allowed the presentation of a report to the National Assembly for approval of an additional Rs170 billion in supplementary budget, bringing total excess expenditures over and above the approved budget to Rs392 billion in the last fiscal year. The Ministry of Finance could not properly estimate the over-spending in the first year of the Pakistan... Read More
 

IMF cuts FBR’s tax target to Rs5.23 trillion

The Express Tribune (Dec 24, 2019)
ISLAMABAD: The International Monetary Fund (IMF) has projected significant fiscal slippages and has finally cut the tax collection target to Rs5.238 trillion, which raises questions over claims of bringing fiscal discipline and restoring macroeconomic stability. The IMF expects Pakistan to miss the budget deficit target of Rs3.2 trillion and has projected excesses in almost all ... Read More
 

Balochistan's revenue collection increases by 164%

The Express Tribune (Dec 24, 2019)
ISLAMABAD: Balochistan government has collected Rs7.84 billion revenue so far in the first half of the fiscal year 2019-20, projecting around 164 per cent increase as compared to the corresponding period of last year. “Balochistan Revenue Authority (BRA) and other departments have collected huge revenue during the first six months of current fiscal year compared to Rs4.90 billion... Read More
 

FATF: PTI govt prepares draft to curb terror financing via NSS

The Express Tribune (Dec 23, 2019)
ISLAMABAD: In line with the FATF recommendations, the federal government has prepared an AML/CFT Rules 2019 draft for the prevention of money laundering and terrorism financing through National Savings Schemes (NSS). It has sought recommendations from all NSS stakeholders within seven days. In case they fail to submit proposals within the stipulated time, the gazette notification... Read More
 

Is Pakistan ready for economic growth?

The News (Dec 23, 2019)
Our knowledge of history, economics, and much more owes a lot to the works of Ibn Khaldun. With his usual keen eye, he said that “Government is an institution which prevents injustice other than such as it commits itself.” What was said 700 hundred years ago still holds true today. The government’s role is key in laying the base for a nation’s progress. At our Institute for Policy Reforms, I led a project ... Read More
 

Pakistan to receive second tranche worth $452m from IMF next week

The Nation (Dec 22, 2019)
ISLAMABAD - Pakistan would receive second tranche worth of $452 million from International Monetary Fund (IMF) next week that would build the country’s foreign exchange reserves. The Executive Board of the IMF on December 19 has completed the first review of Pakistan’s economic performance under the Extended Fund Facility (EFF). The completion of the review will allow the authorities to... Read More
 

Digital economy to create 2m jobs, boost GDP to $40b

The Nation (Dec 22, 2019)
RAWALPINDI - Digital economy in Pakistan has huge potential for creating 2 million jobs and boosting the country's Gross Domestic Product (GDP) up to the level of $40 billion in next couple of years. Transformation is required to promote the Information, Communications and Technology sectors to reposition Pakistan in the digital economy. The Rawalpindi Chamber of Commerce and... Read More
 

Economic stability result of Govt’s policies: Hammad

The Pakistan Observer (Dec 21, 2019)
Islamabad: Minister for Economic Affairs Hammad Azhar said that economy has been put on the track with strenuous efforts of the government under the leadership of the prime minister. In a statement on Friday, he said the IMF Board’s Review is indicating success of the government’s economic reforms. The Minister said Moody’s upgraded ... Read More
 

Turkish Parliament Approves 2020 Budget

The aawsat.com (Dec 21, 2019)
Turkey’s parliament has approved the government’s 2020 budget, which includes increased defense spending and forecasts a budget deficit of 138.9 billion lira ($23.4 billion). The 2020 budget, which state-run Anadolu news agency said was passed with 329 votes in favor to 159 votes against, also projects increased spending on health and education, and foresees a rise in budget...Read More
 

Pakistan’s economic reform programme on track: IMF

The Pakistan Today (Dec 20, 2019)
ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) has completed the first review of Pakistan’s economic performance under the Extended Fund Facility (EFF), saying that Pakistan’s economic reform is on track. The completion of the review will allow the authorities to draw $452.4 million, bringing total disbursements to $1.44 billion, said a press release issued by the... Read More
 

Current account deficit shrinks 72.6pc in Nov: Hafeez Shaikh

The Pakistan Today (Dec 20, 2019)
LAHORE: Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has said that current account deficit is down by 72.6 per cent on a year-on-year in November 2019, whereas it was reduced by 73 per cent during the first five months of FY20 against the same period of last year. The adviser said that during the last five months of the current fiscal year, the State Bank of Pakistan’s... Read More
 

19-month high: SBP reserves surpass $10b mark

The Express Tribune (Dec 19, 2019)
KARACHI: Government’s efforts to boost the foreign exchange reserves have borne fruit as the reserves held by the central bank have shot up to a 19-month high, surpassing the $10-billion mark. The foreign exchange reserves held by the central bank increased 18% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday... Read More
 

If Pakistan's economy grows over 3.8%, it can trigger imbalances

The Express Tribune (Dec 19, 2019)
ISLAMABAD: The balance of payments crisis is imminent in Pakistan, if its economy grows more than 3.8% annually without fixing existing structural economic imbalances, finds a new Asian Development Bank’s (ADB) research paper. In order to avoid the next balance of payments crisis, Pakistan will have to fix its exports and reduce dependency on imports... Read More
 

Effective tax mechanism to boost economic activities

The Pakistan Observer (Dec 18, 2019)
Lahore: Low number of taxes, reduced frequency of payments and an effective mechanism of the refund payments would not only give a momentum to the economic activities but also help further improvement in ease of doing business index. Lahore Chamber of Commerce and Industry (LCCI) President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar and Vice President Mian ... Read More
 

'Lower current account deficit a victory for businessmen'

The Express Tribune (Dec 18, 2019)
FAISALABAD: The current account deficit of Pakistan has decreased from $6 billion to $1 billion in the past four months, which is a victory particularly for the business community as it provides jobs to millions of workers, said Punjab Governor Chaudhary Muhammad Sarwar. Addressing an event at the Faisalabad Chamber of Commerce and Industry (FCCI) on Tuesday, Sarwar pointed ... Read More
 

Foreign Direct Investment surges 78.1pc in five months

The Pakistan Today (Dec 17, 2019)
ISLAMABAD: Foreign Direct Investment (FDI) in Pakistan surged 78.1pc to $850 million in July-November FY20, as compared to the investment of $477.3 million in the same period of last year. On a year-on-year basis, however, the FDI decreased to $200.1 million in November 2019 as against $285.4 million in the same month of 2018, according to the data released by State ... Read More
 

Development spending grows 27pc in July-Oct

The News (Dec 17, 2019)
ISLAMABAD: Provincial governments have cumulatively spent Rs112 billion on developments during the first four months of the current fiscal year of 2019/20, depicting 27 percent year-on-year growth, finance division said on Monday. Combined development spending of the four provinces amounted to Rs88 billion during the corresponding months of the last fiscal... Read More
 

Hot money flows - looking beyond temporary relief in Pakistan

The Express Tribune (Dec 16, 2019)
KARACHI: The current account surplus reported in October 2019 marks a shift from an otherwise persistent current account deficit. It is an achievement for the government in terms of its objectives to curtail the current account deficit, particularly as it faces several challenges on the economic front. A survey of the summary of balance of payments reported by the State Bank of Pakistan (SBP) indicates a $253-million...Read More
 

Foreign investment in Pakistan debt markets should be seen positively: SBP

The Pakistan Today (Dec 16, 2019)
KARACHI: The increase in investment by foreign investors in debt instruments is an encouraging sign for the Pakistani economy, the State Bank of Pakistan (SBP) said on Monday. “Recently, international investors have started investing in debt instruments issued by the Government of Pakistan. This is largely a manifestation of their growing confidence in the positive ... Read More
 

Gwadar port operationalised for exports

The Express Tribune (Dec 15, 2019)
ISLAMABAD: The Gwadar port has been operationalised for export, Adviser to Prime Minister on Trade and Industries Abdul Razak Dawood announced on Saturday, saying that it would reduce the burden on the Karachi port. Dawood said on the microblogging website Twitter that the departure of a vessel, carrying three fish containers worth $50,000 each, for... Read More
 

35pc budget allocated for eliminating inter-district disparity in Punjab

The Pakistan Observer (Dec 14, 2019)
Lahore: Finance Minister Makhdoom Hashim Jawan Bakht on Friday revealed that 35 percent budget had been allocated for eliminating inter-district disparity in the province. This policy is aimed at ensuring inclusive growth so that all the people could equally benefit and grow. He stated this while addressing a seminar at Government College University on... Read More

‘Pakistan on track to fulfilling FATF conditions’

The Pakistan Today (Dec 14, 2019)
KARACHI: The government is on track to fulfilling all necessary conditions of the Financial Action Task Force (FATF), State Bank of Pakistan Governor Dr Reza Baqir said on Saturday. He was speaking at the Financial Crime Summit, a conference organised in Karachi to discuss the way forward for Pakistan post-FATF. The governor sounded cautiously optimistic,... Read More

Centre seeks deduction from NFC to pay off loans

The Express Tribune (Dec 14, 2019)
ISLAMABAD: The Finance Division has proposed to the country’s economic managers to make at source deduction from provincial financial shares under the National Finance Commission (NFC) Award to pay the outstanding loans acquired by provincial food departments from commercial banks. These loans are backed by secondary guarantees issued by the Finance... Read More

PIA records Rs32.7bn loss in first half of 2019

The Pakistan Today (Dec 13, 2019)
KARACHI: Pakistan International Airline (PIA) and its subsidiary, PIA Investments Limited, continue to bleed massively due to a variety of reasons, ranging from mismanagement to lack of transparency and weak audit controls by independent auditors as well as the Auditor General of Pakistan. Nur Khan succeeded not because of his Air Force combat experience but his self... Read More

World Bank to finance Khyber Pass Economic Corridor project with a loan of $406.6 million

The Dawn (Dec 13, 2019)
The World Bank will provide $406.6 million for the Khyber Pass Economic Corridor (KPEC) project which will promote economic development and uplift areas adjoining the expressway and falling in Khyber Pakhtunkhwa (KP). An agreement to this effect was signed in Islamabad on Friday, according to a statement by the Economic Affairs... Read More
 
Budget Study Centre   Issue 55 Dec 12, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Jul-Nov FY20: Pakistan’s trade deficit shrinks 33% to $9.7b

The Express Tribune (Dec 12, 2019)
ISLAMABAD: Pakistan’s trade deficit shrank one-third to $9.7 billion in first five months of the current fiscal year on the back of compression of imports as growth in exports remained tepid, which may again result in missing the annual target. Trade figures that the Pakistan Bureau of Statistics (PBS) released on Wednesday showed that exports fell in November ... Read More
 

'India's economic recovery critical for oil in 2020'

The Express Tribune (Dec 12, 2019)
LONDON: India’s economy is suffering its worst cyclical downturn for more than a decade, which is weighing heavily on global oil consumption, and until the economy improves, prices are unlikely to see a sustained increase. If the monetary and fiscal stimulus succeeds in pushing the economy out of its current trough, faster growth would play an important role in rebalancing the oil market ... Read More
 

Asian Development Bank says Pakistan's economy is showing signs of stability

The News (Dec 11, 2019)
The Asian Development Bank (ADB) on Tuesday said signs of economic stabilisation were emerging in Pakistan during the ongoing fiscal year 2019-20. The ADB, in its Asian Development Outlook 2019 Supplement, said that inflation in Pakistan for the first three months of the ongoing fiscal year averaged 10.1 per cent despite “tight monetary policy... Read More
 

These bugs are eating into Pakistan’s already fragile economy

The Print (Dec 11, 2019)
Karachi: Pakistan’s efforts to turn around its economy after winning bailout funds from the International Monetary Fund face a new threat — from crop-eating pests. Swarms of locusts are fanning out through the South Asian nation, gorging on wheat, cotton, mustard and other crops. That, together with unseasonal rain and a scourge of low quality seeds, has hit major crops in the country’s largest... Read More
 

ADB, Pakistan sign $1.3 billion loan agreement

The Daily Times (Dec 10, 2019)
The Asian Development Bank (ADB) and Pakistan on Monday struck a loan agreement of $1.3 billion for budgetary support and reforms of the country. This will help stabilise the foreign exchange reserves of the country, and strengthen Pakistan’s slowing economy. Federal Minister for Economic Affairs Hammad Azhar was present on the occasion, while Economic Affairs Division Secretary... Read More
 

Russia keen to invest billions of dollars in Pakistan’s economy

Daily Business Recorder (Dec 10, 2019)
A new chapter of economic relations between Pakistan and Russia are on the brink of a new beginning, with a 64-member Russian high-level delegation present in the country keen to invest up to $10 billion in Pakistan. As per local media reports, the Russian companies are looking to invest in Pakistan's energy sector. The companies seek a $2.5 billion gas pipeline project from Karachi to Lahore ... Read More
 

Pakistan, Qatar to sign trade pacts soon

The Express Tribune (Dec 09, 2019)
ISLAMABAD: Pakistan and Qatar have agreed in principle on a preferential trade agreement (PTA) and a free trade agreement (FTA) to enhance bilateral trade. The agreements will soon be signed after necessary formalities. Pakistan has also offered to establish a plant in Qatar to manufacture footballs for the FIFA World Cup 2022 as well as subsequent football tournaments... Read More
 

Russia pledges to invest heavily in Pakistan’s defence, industrial projects

Daily Pakistan Today (Dec 09, 2019)
ISLAMABAD: Russia has signed a new trade deal with Pakistan, pledging to invest heavily in the country’s industrial sector. According to government officials, Russia would provide financial assistance worth $1 billion for the rehabilitation of Pakistan Steel Mills (PSM). Moreover, Moscow would also invest a hefty amount to enhance the volume of bilateral trade between the two countries. “Russia’s ... Read More
 

Iran unveils budget of ‘resistance’ against US sanctions

Daily Pakistan Today (Dec 08, 2019)
TEHRAN: Iran’s President Hassan Rouhani on Sunday presented to parliament what he called a “budget of resistance” against crippling sanctions imposed by arch-enemy the United States. “Next year, similar to the current year, our budget is a budget of resistance and perseverance against sanctions,” Rouhani told parliament in remarks broadcast on state radio. “This budget ... Read More
 

Cashless economy for Pakistan: challenges and way forward

The Daily Times by Syed Shujaat Ahmad (Dec 08, 2019)
Cashless economic system describes an economic state where financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information between the parties. Societies of such form have existed from the time when human society came into existence, based on barter and other methods of exchange and such forms have also become... Read More
 

Russia to develop stakes in Pakistan economy in big way

The Gulf Times (Dec 07, 2019)
Internews/ Islamabad: Russia has decided to develop its stakes in Pakistan’s economy in a big way and to this effect a 64-member delegation headed by Minister for Trade and Industries for the Russian Federation Denis V Manturov is visiting Pakistan for four days from today to December 11 to attend an Inter-Governmental Commission. Russia contributed a lot towards... Read More
 

ADB okays $1.3bn loans for Pakistan

The Dawn (Dec 07, 2019)
ISLAMABAD: The Asian Development Bank (ADB) on Friday approved $1.3 billion in loans for Pakistan for emergency budgetary support, chiefly through a relatively expensive crisis response facility. The Manila-based lending agency announced that its board of directors had app¬roved two loan progra¬m¬mes to help Pakistan build foreign exchange...Read More
 

China's defence budget increases 850 per cent over 20 years: Top Pentagon official

The New Indian Express (Dec 06, 2019)
WASHINGTON: China's defence budget has grown 850 per cent in the last 20 years from USD 20 billion to USD 170 billion in 2018, a top Pentagon official told lawmakers on Thursday. China possesses one of the largest militaries in the world. It continues to add to its capabilities and is increasingly provocative, such as its activities in the South China Sea ... Read More
 

ADB approves loan worth $1.3 bn for Pakistan’s budget support, energy sector reforms

The Daily Times (Dec 06, 2019)
ISLAMABAD: The Asian Development Bank (ADB) approved on Friday $1 billion in immediate budget support to Pakistan to shore up the country’s public finances and help strengthen a slowing economy besides approving $300 million to support energy sector reforms. The quick dispersing Special Policy-Based Loan is part of a comprehensive multi-donor economic reform program led by the... Read More
 

Inflation surges to nine-year high

The Dawn (Dec 05, 2019)
ISLAMABAD: Inflation rose to 12.7 per cent year-on-year, the highest level in nine years mainly driven by an increase in prices of food items, the Pakistan Bureau of Statistics (PBS) reported on Wednesday. Inflation, measured by the Consumer Price Index (CPI), edged up by 1.3pc over the previous month after the PBS revised its calculation methodology by setting the new base year 2015-16... Read More
 

Borrowing soars to $10.4b in PTI’s first year in power

The Express Tribune (Dec 05, 2019)
ISLAMABAD: Prime Minister Imran Khan’s government took $10.4 billion worth of foreign loans in its first year in power and 46% of these were short-term expensive commercial lending, secured at up to 5.5% interest rate. The most expensive commercial loans were obtained from Chinese banks that were contracted at six-month Shanghai Interbank Offered Rate (Shibor) plus 2.5%, according ... Read More
 

IMF dismisses proposal of tax relief for builders

The Express Tribune (Dec 04, 2019)
ISLAMABAD: The International Monetary Fund (IMF) has shot down Pakistan’s proposal to introduce a special income tax regime for builders and developers and urged the authorities to bring equity in the distorted tax system. The government shared a draft of the presidential ordinance with the IMF in the recently held talks aimed at treating the... Read More
 

Rs3.225b for non-salary budget for schools released

The News (Dec 04, 2019)
LAHORE:Finance Department Punjab has released non-salary budget (NSB) amounting to Rs 3.225 billion for public schools across the province. These funds have been transferred into Special Drawing Accounts (SDAs) jointly operated by Chief Executive Officers of District Education Authorities (DEAs) and District Education Officer (DEOs) of the districts. School Education Department has directed the CEOs... Read More
 

Pakistan makes $1 billion foreign debt repayment

The Express Tribune (Dec 03, 2019)
KARACHI: Pakistan has successfully made a foreign debt repayment of over $1 billion, shaking up the country’s foreign currency reserves on the day Moody’s rating agency upgraded Islamabad’s credit rating outlook to ‘stable’ from ‘negative’. “We paid over $1 billion including interest payment at the maturity of a Sukuk today (Monday),” State Bank of Pakistan (SBP) official confirmed ... Read More
 

Moody’s upgrades Pakistan’s economic outlook

The Dawn (Dec 03, 2019)
ISLAMABAD: New York-based credit rating agency Moody’s on Monday raised Pakistan’s economic outlook from negative to stable on the back of the country’s reforms supported by an IMF programme, but kept its credit rating unchanged at B3. “The change in outlook to stable is driven by Moody’s expectations that the balance of payments dynamics will continue to ... Read More
 

PM satisfied with economic progress

The Pakistan Today (Dec 02, 2019)
ISLAMABAD: Prime Minister Imran Khan on Monday expressed satisfaction over Pakistan’s current economic situation, saying that progress on development projects would accelerate the growth process. Presiding over an important meeting of the economic team, PM Imran said that economic stability and creation of jobs for youth were among the priorities of the government ...Read More
 

Moody’s upgrades Pakistan’s outlook to ‘stable’, affirms B3 rating

The Pakistan Today (Dec 02, 2019)
As a sign of improving economy, Moody’s Investors Services have upgraded the country’s outlook from ‘negative’ to ‘stable’, reaffirming the country’s rating of B3, the agency announced on Monday. Moody’s had downgraded Pakistan’s ratings outlook to negative last year in June, citing heightened external vulnerability risk due to depleting... Read More
 

Positive signals rising from Pakistan’s economy

The Express Tribune (Dec 01, 2019)
Dramatically rising from the ashes of its predecessor, a phoenix, in ancient Greek mythology, is a bird reborn after a catastrophe with more strength and power. After posting 49 months of back-to-back current account deficits, Pakistan’s economy suddenly posted a surplus. The stock market rose by over 8,000 points in the last few weeks. One billion dollars of hot money ... Read More
 

Govt controls soaring budget deficit despite facing shortfall in tax collection

The Nation (Dec 01, 2019)
ISLAMABAD: The government has successfully controlled the soaring budget deficit during first quarter (July to September) of the current fiscal year despite facing shortfall in tax collection. Pakistan’s budget deficit was recorded at Rs286 billion during July to September period of the year 2019-20. In terms of GDP, the country’s budget deficit was recorded at 0.7 percent ... Read More

Economy of BRI’s countries including Pakistan gets boost with enhanced Chinese investment: Su Wei

The Daily Times (Nov 30, 2019)
China’s outbound investment has boosted the economic development of countries and regions along the Belt and Road Initiative(BRI) and brought tangible benefits for local peoples, said Su Wei, Deputy Secretary General of China’s National Development and Reform Commission(NDRC). Su made the remark at the opening ceremony of 11th China Overseas ... Read More

Once the world's fastest growing economy, India faces a slowdown

The Al-Jazeera (Nov 30, 2019)
New Delhi, India - The Indian economy expanded at its weakest pace in more than six years, according to official data released on Friday, adding pressure on a government that is already dealing with a sputtering economy. The economy grew at 4.5 percent for the three months ending September, down from 5 percent in the previous quarter and... Read More

Sri Lanka’s central bank holds rates watching tax cuts, budget deficit

The Economy Next (Nov 30, 2019)
ECONOMYNEXT – Sri Lanka is holding policy rates at current levels, amid a widening the budget deficit so far this year and recent tax cuts announced to stimulate economic activity, which need clarity, the central bank said. “…[R]ecent tax revisions would support lower inflation and higher economic growth in the short term, but was of the view that greater clarity with regard to the medium term fiscal ... Read More

Effects of Azadi March on Pakistan Economy

The Nation (Nov 29, 2019)
Antigovernment Azadi March set out on Sunday afternoon from Karachi towards Islamabad. Thousands of people including seminary students, are participating in the march. Thousands of protesters in Pakistan are marching to the capital of Islamabad, calling on prime minister Imran Khan to resign over the weak economy and corruption claims. While ... Read More
 
Budget Study Centre   Issue 54 Nov 28, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

SBP reserves rise $240m to $8.68bn

The Pakistan Today (Nov 28, 2019)
The foreign exchange reserves held by the central bank rose 2.84pc on a weekly basis, as per the data released by the State Bank of Pakistan (SBP) on Thursday. On November 22, the foreign currency reserves held by the SBP were recorded at $8,682.3 million, up $240 million compared with $8,442.1 million in the previous week. The central bank attributed the increase to official ... Read More
 

Leakages in transit trade badly hurt economy

The Express Tribune (Nov 28, 2019)
KARACHI: The misuse of Afghan transit trade still remains the biggest issue that is badly hitting Pakistan’s economy but the government is working on a plan to clear about 90-95% of imports without physical inspection by 2023-24. “If you ask me what is the biggest problem for me as a law enforcer in Pakistan, I will say it is the abuse and leakages in the Afghan transit trade,” Federal Board of... Read More
 

Credible deficit plan to help Sri Lanka sell $3 billion of bonds annually

The Gulf News (Nov 27, 2019)
Colombo: Sri Lanka must come up with a plan to narrow its budget deficit as the top Asian issuer of sovereign dollar debt after China this year prepares to sell $3 billion of bonds annually. The island-nation, which elected Gotabhaya Rajapaksa as its president last week, has to raise debt commercially to service earlier borrowings, Central Bank... Read More
 

Pakistan’s Economic Woes and the Way Forward

The Daily Times (Nov 27, 2019)
Pakistan is a country blessed with enormous natural reserves and manpower. Still, it is plunged in a downward spiral of economic recession. Some of the obvious reasons are bad governance, corruption, nepotism and impediments towards entrepreneurship and investments (both by domestic and foreign investors). Moreover, a miserable tax system has also added insult... Read More
 

The downside of Pakistan’s economy

The Business Recorder (Nov 26, 2019)
The government has recently been making frequent positive statements about on-going developments in the economy. Rightfully, success in the process of stabilization has been highlighted. The current account in the balance of payments was transformed into a surplus in October. Over the four-month period, July to October, the current account deficit has declined by as much as 74 percent. However, this has ... Read More
 

Pakistan receives $1 billion in hot foreign money

The Express Tribune (Nov 26, 2019)
ISLAMABAD: Foreign investors have bought over $1 billion worth of Pakistan government’s debt, said Finance Adviser Dr Abdul Hafeez Shaikh on Monday – an amount that is equal to the increase in official foreign exchange reserves in the current fiscal year. Central bank data showed that the money was predominantly invested in three-month treasury bills, suggesting that foreign investors ... Read More
 

China-Pakistan Economic Corridor: US claims about loans, their impact on economy rejected: Qureshi

The Business Recorder (Nov 25, 2019)
Foreign Minister Shah Mahmood Qureshi Sunday said the process of transparent accountability would continue in the country. Talking to media here, he said no one wanted to face accountability process, and whenever people were held accountable, they attempt to create hindrances in the way of the accountability process. Responding to a question about Asif Ali... Read More
 

AIIB okays $511 million for Pakistan’s infrastructural projects

Daily Nation (Nov 25, 2019)
ISLAMABAD - Asian Infrastructure Investment Bank (AIIB) will finance $511.81 million for four projects for the infrastructural development in Pakistan, mainly related to roads, energy, sanitation and mass transit. The amount has been approved for the projects including National Motorway M-4 of $100 million, Tarbela Hydropower Extension Projects $300 million... Read More
 

Retailers feel pinch of economic slowdown in Pakistan

Daily Express Tribune (Nov 24, 2019)
LAHORE: Pakistan’s retail sector is looking for some breathing space to remain sustainable during the ongoing economic slowdown. “The recent hike in taxes on the retail sector has caused turmoil and uncertainty,” said Chainstore Association of Pakistan Chairman Tariq Mehboob. “In fact, many retailers, which represent the organised retail sector, are initiating cost-cutting measures,... Read More
 

‘Pakistan in better position to attract investment’

The Express Tribune (Nov 24, 2019)
LAHORE: Pakistani handmade furniture products have great potential to capture world market with excellent modern designing, said Punjab Governor Chaudhry Muhammad Sarwar. Speaking at the 11th Interiors Pakistan exhibition held at Expo Centre Lahore, he said that Pakistan was moving forward and was in a better position to attract foreign investment. He appreciated the Pakistan... Read More
 

CPEC to push Pakistan deeper into debt burden, cautions US

The Dawn by Anwar Iqbal (Nov 23, 2019)
WASHINGTON: The United States has warned Pakistan that the China-Pakistan Economic Corridor (CPEC) would push the country deeper into an already stifling debt burden, foster corruption and repatriate jobs and profits to China. In a speech, described as “unusually specific” by the international media, the top US diplomat for South Asia warned on Thursday that the multi-billion-dollar project would take a toll on Pakistan’s ... Read More
 

Encouraging economic indicators

The Pakistan Today by Muhammad Zahid (Nov 23, 2019)
Any country’s progress, development and prosperity is linked with the national growth rate both directly and indirectly. If the economic growth rate is good, then there is lot of relief for the people at large. Pakistan is a developing country and its economic growth rate is not so high and keeps going up and down due to various factors every now and then...Read More
 

Big industry contracts 5.9pc in 3MFY20

The Pakistan Today (Nov 22, 2019)
ISLAMABAD: Despite positive economic indicators like reduction in current account deficit and jump in the stock exchange, the fall in Large Scale Manufacturing Industries (LSMI) remains the major concern for the country. The overall output of the LSM Index decreased by 5.91pc during the first quarter (July-Sept) of FY20, as compared to the corresponding period of last fiscal year... Read More
 

Monetary policy: SBP leaves interest rate unchanged at 13.25%

The Express Tribune (Nov 22, 2019)
KARACHI: The State Bank of Pakistan (SBP) left the benchmark interest rate unchanged at the eight-year high of 13.25% for the next two months as controlling high inflation may remain a big challenge in the short run. The decision taken by the SBP Monetary Policy Committee (MPC) was largely in line with market expectations. The policy is an effective tool available with the central bank to tame ... Read More
 

In Pakistan, bottlenecks hold up $14b foreign loans

The Express Tribune (Nov 21, 2019)
ISLAMABAD: Prime Minister Imran Khan on Wednesday directed expeditious release of $14 billion stuck up foreign loans against the ongoing development projects. The directive came as the bureaucracy fails to finalise a viable action plan to remove bottlenecks to unlock the much-needed stimulus funds. Over a month after The Express Tribune reported that $21.6 billion... Read More
 

Foreign exchange: SBP reserves rise $45m to $8.44b

The Express Tribune (Nov 21, 2019)
KARACHI: The foreign exchange reserves held by the central bank rose 0.5% 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. However, financial assistance from the United... Read More
 

Impact of industrial operations on economy of Pakistan

The News by Muhammad Mudassar (Nov 20, 2019)
Industrialization plays a vital role in the economic development of underdeveloped countries. As the historical record shows, the developed countries of the world broke the vicious cycle of poverty by industrializing, rather than focusing on agricultural or the production of national resources. Currently, Pakistan, as a developing ... Read More
 

CPEC: unprecedented boost to Pakistan’s economy

The Pakistan Observer (Nov 20, 2019)
China-Pakistan Economic Corridor (CPEC), massive bilateral project to improve infrastructure within Pakistan for better trade with China and to further integrate the countries of the region. The project was launched on April 20, 2015 when Chinese President Xi Jinping and the then Pakistani Prime Minister Nawaz Sharif signed 51 agreements and Memorandums of Understanding... Read More
 

Tackling economic woes

The News by Abdul Sattar (Nov 19, 2019)
The recent statement of Chinese Ambassador to Pakistan Yao Jing augurs well for the debilitating economy of the country. The envoy while talking to the media recently in Quetta said that China is setting up 19 factories in Gwadar. He expressed the desire of his government to contribute towards the development of Balochistan’s mining, agriculture... Read More
 

Economy showing signs of improvement: SBP governor

The Pakistan Today (Nov 19, 2019)
KARACHI: State Bank of Pakistan (SBP) Governor Reza Baqir on Monday said the economy has begun to show signs of improvement, adding that inflation would start easing soon as a result of the new measures. Addressing the business community at Karachi Chamber of Commerce and Industry (KCCI), Baqir said the SBP has always made efforts to facilitate trade and industry as better... Read More
 

CPEC to help expand industrial base, exports of Pakistan: Khusro

The app.com.pk (Nov 18, 2019)
ISLAMABAD, Nov 18 (APP):Minister for Planning, Development and Refomrs Makhdum Khusro Bakhtyar on Monday said that under next phase of China Pakistan Economic Corridor (CPEC), the industrial base of the country would be expanded, eventually to help increase the exports. The minister said that China had total trade volume worth of $4000 billion with the world ...Read More
 

Circular Debt To Be Eliminated By Dec 2020: Hafeez Shaikh

The Urdupoint.com (Nov 18, 2019)
ISLAMABAD, (APP – Urdu Point / Pakistan Point News - 18th Nov, 2019 ):Advisor to the Prime Minister on Finance and Revenue Dr Hafeez Shaikh Monday reiterated the government resolve to eliminate the issue of circular debt by December 2020. Briefing the leading anchorpersons of electronic media about economic performance ... Read More
 

Pakistan’s fiscal dilemma

The News (Nov 17, 2019)
The State Bank of Pakistan (SBP) in its Annual Report 2018-19—The State of Pakistan’s Economy has strongly criticised the provinces for what it called their “lack of institutional capacity,” giving rise to “lower revenue collection that contributed less to tax-to-GDP ratio and fiscal consolidation efforts”. The report further noted that “an important agenda on ... Read More
 

CPEC effect: Taiwanese textile companies may relocate to Pakistan

The Express Tribune (Nov 17, 2019)
LAHORE: Being a cheap labour market, Pakistan can transform into an excellent destination for Taiwanese textile companies, which are willing to relocate their units outside Vietnam, said Taiwan Textile Federation President Justin Huang. “At present, Vietnam is crowded, which causes difficulties for Taiwanese textile firms there, such as labour shortages,” ... Read More

Military budget should go to common sense

The Bulletin (Nov 16, 2019)
With U.S. support for NATO waning, President Macron of France recently accused the organization of being “brain dead,” a remark undoubtedly intended to prod more robust EU leadership. Not that America’s lead’s been exemplary. Take, for example, Operation Allied Force, NATO’s 1999 air campaign over Kosovo, General Wesley Clark supreme commander. Critics called it ... Read More

Pakistan saves $3.9b as trade losses decrease

The Samaa.tv (Nov 15, 2019)
Pakistan’s trade deficit has fallen by 33.52% in the first four months of the current fiscal year in comparison to the same time last year, according to recent figures by the Pakistan Bureau of Statistics.This means the country has saved over $3.9 billion–the difference between the trade loss from the first quarters of last year and this year. Trade deficit figures for the current fiscal year’s first... Read More

Pakistan will thrive as more women participate in economy

The app.com.pk (Nov 15, 2019)
ISLAMABAD, Nov 15 (APP):Special Assistant to Prime Minister on Social Protection and Poverty Alleviation Dr Sania Nishtar, at the US-Pakistan Women in the Economy Symposium, Friday said Pakistan will thrive as more women participate in the economy. At the event hosted by the George H W Bush School of Government and Public Service at Texas A&M University in... Read More

Pakistan's economy has finally stabilised: PM

The Express Tribune (Nov 15, 2019)
Prime Minister Imran Khan on Friday said the country’s economy has finally stabilised and was moving in the right direction. While addressing the signing ceremony of Super-6 Wind Power Projects in Islamabad, the premier said there is so much potential for hydro-electricity in Pakistan, and the new project will provide affordable and environmentally friendly clean energy... Read More
 
Budget Study Centre   Issue 53 Nov 14, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreigners invest $678m in debt instruments

The Express Tribune (Nov 14, 2019)
KARACHI: Foreigners have continued to step up investment in Pakistan’s debt instruments, mostly in short-term treasury bills (T-bills), and have partly helped strengthen the country’s foreign exchange reserves to over $8 billion at the beginning of November. The return of stability to the rupee-dollar parity coupled with high rates of return on debt instruments encouraged foreigners ... Read More
 

CPEC’s social, economic projects to begin before 2020

The Business Recorder (Nov 14, 2019)
Work on 17 out of 27 priority projects in social and economic development component of Chin-Pakistan Economic Corridor (CPEC) would commence before 2020. According to official documents concerned, the meeting of 9th joint cooperation committee (JCC) of CPEC, Pakistan and China appreciated the progress achieved by JWG since its establishment. Practical cooperation... Read More
 

Stocks gain 401 points to storm past 37,000 level

The Pakistan Today (Nov 13, 2019)
KARACHI: Bulls of the Pakistan Stock Exchange (PSX) took charge of the market once again on Wednesday after a range-bound session a day before. Indices that started the day on a negative note soon took a U-turn to surpass the 37,000 points mark. Foreign investors ended up as net buyers for the fifth consecutive session on Tuesday with a net inflow of $1.22 million... Read More
 

Federal transfers: Sindh suffers Rs 109 billion shortfall in July-October: Murad

The Business Recorder (Nov 13, 2019)
Sindh Chief Minister Syed Murad Ali Shah Tuesday said the federal government during last four months had to release Rs 278.4 billion against which the provincial government has received only Rs 169.2 billion which shows a shortfall of Rs109.17 billion. “This is the position of vertical distribution of funds, therefore the provincial government is facing serious problems."... Read More
 

Remittances slow down to $7.48b

The Express Tribune (Nov 12, 2019)
KARACHI: Remittances sent home by overseas Pakistanis in the first four months of the current fiscal year (July-October 2019) remained almost flat at $7.48 billion. According to data released by the State Bank of Pakistan (SBP) on Tuesday, the remittances were 1.82% lower than $7.62 billion sent home from abroad in the same period of the previous fiscal year. Talking to The Express Tribune,... Read More
 

‘Study on budget making process at district level in Balochistan’ launched

The Balochistan Times (Nov 12, 2019)
Zhob: Action for Welfare and awakening in Rural Environment in collaboration with Center for Peace and Development Initiatives (CPDI) launched its report entitled ‘ Study of Budget Making Process at District level in Balochistan, here in Zhob District, Chief guest of the session was CPDI provincial coordinator Muhammad Asif. Those who attended the session were included... Read More
 

FATF targets: FBR to intensify crackdown against banned outfits

The Pakistan Today (Nov 11, 2019)
ISLAMABAD: In order to meet the condition of Financial Action Task Force (FATF) regarding the control of terror financing, the Federal Board of Revenue (FBR) has decided to intensify its efforts against over 2,600 individuals/assets of banned organisations. The individuals and assets targeted by FBR so far were linked with various banned organizations, including Da’esh (ISIS), AL-Qaida (AQ),... Read More
 

Govt announces Rs200bn package for exporters

The Pakistan Today (Nov 11, 2019)
ISLAMABAD: The government has decided to announce a support package of Rs200 billion for exporters in order to enhance the country’s exports, encourage local production and create job opportunities, said Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh. Addressing a press conference on Monday, the adviser said that the State Bank of Pakistan... Read More
 

Pakistan's economy stable, improving: PBBC

The Dunyanews.tv (Nov 10, 2019)
LONDON (APP) – Pakistan Britain Business Council (PBBC) appreciating the economic policies initiated by the government of Pakistan has said that due to its prudent policies, the economy of the country was strengthening and improving. “The latest World Bank report has also recognized and said that Pakistan has emerged as an improver in terms of ease of doing ... Read More
 

CPDI launches ‘study of budget making process at district level in Balochistan’

Daily Asia Today (Nov 10, 2019)
Chaman: Budget call letters delayed, 19 out of 23 districts stated that they have not received it, budget time line is not followed properly. Out of 23 only 6 surveyed distrits conducted pre-budget consultations. 5 districts did not hold a single consultation and 12 district done it without directly involving general public. Only 1 district issued pre-budget statement the copy was not available for... Read More
 

Pakistan wins IMF's confidence, to get $450m loan tranche

The Aljazeera.com (Nov 09, 2019)
Pakistan's fiscal deficits are narrowing, the International Monetary Fund (IMF) said on Friday as it announced it would release the first tranche of its $6bn financial assistance programme to the country. The IMF agreed to the three-year rescue package for Pakistan in April - its 13th bailout programme for the South Asian nation since the late 1980s - as the economic outlook for the country of 208 million... Read More
 

IMF releasing first tranche of $6bn loan package for Pakistan

The Aljazeera.com(Nov 09, 2019)
Pakistan's fiscal deficits are narrowing, the International Monetary Fund (IMF) said on Friday as it announced it would release the first tranche of its $6bn financial assistance programme to the country. The IMF agreed to the three-year rescue package for Pakistan in April - its 13th bailout programme for the South Asian nation since the late 1980s - as the economic outlook for the country of 208 million ...Read More
 

IMF reaches staff-level agreement with Pakistan on first review under EFF

The Dunyanews.tv (Nov 08, 2019)
ISLAMABAD (Web Desk) – An International Monetary Fund (IMF) mission led by Ernesto Ramirez Rigo on Friday visited Islamabad from October 28 to November 8, 2019 to conduct discussions on the first review under the Extended Fund Facility (EEF). At the end of the visit, Mr. Ramirez Rigo made the following statement: “The Pakistani authorities and IMF staff have reached a staff-level agreement on... Read More
 

Pakistan flays cuts in UN peacekeeping budget

The Nation (Nov 08, 2019)
UNITED NATIONS - Pakistan has warned that arbitrary cuts in peacekeeping funding risk diminishing effectiveness of UN’s flagship operations and jeopardizing the safety of peacekeepers. “Our objective should be to enhance capabilities. This cannot be achieved by reducing resources for peacekeeping,” Aamir Khan, Pakistan’s deputy... Read More
 

Govt urged to ensure citizens participation in budget preparation

The Nation (Nov 07, 2019)
BADIN - Experts urged the federal, provincial and district governments to ensure fully and active participation of common people and citizens in the preparation of budget at district and provincial level. Addressing a seminar titled “Consultation over preparation of district Budget” organised by Indus Development Society (IDS) in collaboration with Center for Peace and Development Initiative... Read More
 

SBP reserves surge $443m to stand at $8.4bn

The Pakistan Today (Nov 07, 2019)
The foreign exchange reserves held by the central bank jumped 5.6pc on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On November 1, the foreign currency reserves held by the SBP were recorded at $8,357.6 million, up $443.3 million compared with $7,914.3 million in the previous week. The SBP, in its report, cited no reason for the increase in... Read More
 

Is e-commerce dying in Pakistan?

The Pakistan Today (Nov 06, 2019)
E-commerce in Pakistan is burgeoning and it is burgeoning at breakneck speed. In sheer numbers, e-commerce sales swelled 93.7pc in 2018, reaching Rs40.1 billion, compared to Rs20.7 billion in 2017. This growth is supported by improved internet accessibility with 159 million cellular subscribers, 66 million 3G/4G subscribers and 68 million broadband subscribers... Read More
 

Pakistan, Qatar agree to enhance trade, investment ties

The Pakistan Today (Nov 06, 2019)
Pakistan and Qatar have agreed to strengthen and expand bilateral cooperation, particularly in the fields of trade, industry, transport, energy, manpower export, education, science & technology, finance, tourism and infrastructure. The 5th session of Pakistan-Qatar Joint Commission, which undertook a comprehensive review of all the facets of bilateral relations between Pakistan and ... Read More
 

Foreign investment in Pakistan increases by 137pc: Economic Affairs minister

The Business Recorder (Nov 05, 2019)
Federal Minister for Economic Affairs has said that the total foreign investment in Pakistan increased by a whopping 137 percent in the first quarter of the financial year 2019-20. Talking to media on Tuesday, the Federal Minister for Economic Affairs Hammad Azhar briefed about the country's economic position, saying that the current /account deficit has declined by 64 percent in the first... Read More
 

Development budget of science & technology ministry increased by 600pc: Fawad

The Dawn (Nov 05, 2019)
KARACHI: Pakistan is heading towards the manufacturing of lithium batteries for solar power with the support of Chinese companies and this would boost the country’s efforts to meet its growing energy needs. This was stated by Science and Technology Minister Fawad Hussain Chaudhry during the inaugural ceremony of a four-day symposium that opened at Karachi... Read More
 

State of economy

The Dawn (Nov 04, 2019)
The last fiscal year was one of the toughest for Pakistan, and the challenges are far from over. This is the gist of the annual report just released by the State Bank of Pakistan regarding FY2019. Coming almost four months after the fiscal year concluded, the report remains timely for the important lessons it has for the present, particularly the insights it shares on why the investment scenario remains so dismal...Read More
 

Investment drifts downwards in Pakistan

The Express Tribune (Nov 04, 2019)
KARACHI: Pakistan has been largely off the radar screen for direct investors for quite a long time despite improvement in some economic indicators in the recent past, a highly liberal trade and investment regime and a large market. “What explains this persistent underinvestment – both domestic and foreign – in Pakistan in spite of a liberal trade and... Read More
 

Pakistan ranked amongst top 20 global economic reformers in the World Bank Report

The Gulf News (Nov 03, 2019)
Dubai: The World Bank has acknowledged Pakistan amongst top 10 economies that improve the most on the ease of doing business after implementing regulatory reform. The World Bank ranked Pakistan at number six amongst the top 20 global reformers. As per the report, Pakistan has improved 28 ranks, from 136 to 108. It has also acknowledged top 10 economies... Read More
 

WTO authorises Chinese tariffs on $3.6b in US goods

The Express Tribune (Nov 03, 2019)
GENEVA: A World Trade Organisation (WTO) arbitrator on Friday authorised China to slap tariffs on US imports worth up to $3.58 billion annually in a years-long dispute over US anti-dumping practices, a trade official said. China had asked the WTO for permission to hit the US with more than $7 billion in tariffs in the case. But the WTO ruling said it had determined that... Read More

IMF asks Pakistan to spend more on development

The Express Tribune (Nov 02, 2019)
ISLAMABAD: The International Monetary Fund (IMF) on Friday urged Pakistan to spend more on development as the combined spending by federal and provincial governments in the first quarter remained less than one-tenth of the annual allocations. The lower spending on development than the allocated budget during the July-September quarter has also... Read More

IMF hails Pakistan for primary budget surplus

The News (Nov 02, 2019)
ISLAMABAD: Pakistani authorities managed to keep budget deficit at 0.9 percent of GDP, or around Rs400 billion, during the first quarter of the current fiscal – an achievement that was hailed by the IMF, but the country was advised to ensure full use of the budget to achieve the development goals, sources said on Friday. Sources said the International Monetary Fund (IMF) Mission Chief Ramirez Rigo... Read More

‘Centre, provinces working closely on fiscal, taxation issues’

The Pakistan Today (Nov 01, 2019)
ISLAMABAD: Advisor to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has said the federal and provincial governments are in continuous dialogue to improve coordination and create harmony on issues related to fiscal and budget management, multiplicity of tax rates and reconciliation of input adjustment. He made this observation while chairing a meeting at the Finance Division... Read More

Pakistan requests IMF to cut tax target by Rs300b

The Express Tribune (Nov 01, 2019)
ISLAMABAD: Pakistan has requested the International Monetary Fund (IMF) to reduce the federal tax target by Rs300 billion to Rs5.2 trillion as shortfall in collection has widened to Rs167 billion in just four months of the current fiscal year. The request was made despite Prime Minister Imran Khan’s personal commitment to the nation that he would go all out to achieve... Read More
 
Budget Study Centre   Issue 52 Oct 31, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign Direct Investments–Economic Hope of Pakistan

The Business Recorder (Oct 31, 2019)
Pakistan's economy has seen several swings over the past few years. The PTI government rode to victory on the cry of economic reforms and their performance therein, became the litmus test to gauge the competency of this newborn government. Initially, the economy suffered several shocks and so did the psyche of the general populace. However, much to the chagrin of those who... Read More
 

Pakistan’s economy on right track IMF predicts Pak economic turnaround from 2020

The Gulftoday (Oct 31, 2019)
Adviser on finance Dr. Hafeez Sheikh has stated that the statistics of the first quarter of the current financial year indicate that the Pakistan’s economy is on the right track and it is gradually stabilising. He gave these remarks during a meeting with Pakistan’s Permanent Representative at the United Nations Munir Akram in Islamabad. The Adviser on Finance informed Munir Akram about the measures... Read More
 

Majority Pakistanis identify economy as biggest problem: poll

The Geo.tv (Oct 30, 2019)
A vast majority of Pakistani’s have identified economic problem, specifically inflation, as the biggest problem faced by the country, according to a Gilani Research Foundation survey released on Tuesday. A press release issued by the foundation said they concluded that the economy was the major problem for the people after carrying out a survey of a nationally representative sample across the four... Read More
 

Govt moving in right direction: IMF

The Nation (Oct 30, 2019)
ISLAMABAD: The International Monetary Fund (IMF) on Tuesday said that government is moving in right direction as it reduced the fiscal deficit and also the volatility in the exchange rate in last few months. The IMF has appreciated the positive results being produced by the policies and strategies put in place by the government to remove imbalances in the economy. “The volatility in the exchange... Read More
 

Revenue targets: Punjab finance minister expects Rs 250 billion budget surpluses

The Business Recorder (Oct 29, 2019)
Punjab Finance Minister Monday said that the province will be on almost Rs 250 billion budget surpluses if it is able to meet its revenue generation targets. The government had paid Rs 56 billion debt it owed from previous government in shape of contractors' bills. Addressing the launching ceremony of “Punjab Component of Ease of Doing Business 2020 report," the minister said ... Read More
 

Rising debt hinders Pakistan’s growth

The Express Tribune (Oct 29, 2019)
ISLAMABAD: The vicious cycle of low economic growth and rising public debt has limited Pakistan’s fiscal space for propelling growth rate and the country faces difficulties in reducing the debt despite tightening fiscal policies, says a new regional outlook of the International Monetary Fund (IMF). However, Islamabad can reduce the accumulation of public debt by... Read More
 

CPEC Joint Cooperation Committee to meet on Nov 5

The Pakistan Today (Oct 28, 2019)
ISLAMABAD: Amid uncertainty with regard to a possible sit-in of Jamiat Ulma-e-Islam leader Fazlur Rehman, the 9th Joint Cooperation Committee (JCC) of China Pakistan Economic Corridor (CPEC), the highest forum of the corridor, is scheduled to be held in Islamabad on November 5. The JCC, according to sources, would deliberate on recent developments pertaining to Main Line-1... Read More
 

IMF mission arrives in Pakistan amidst uncertain political situation

The Pakistan Today (Oct 28, 2019)
ISLAMABAD: While the country is going to face an uncertain political situation following the planned march by a political party towards Islamabad, a mission of the International Monetary Fund (IMF) is visiting Pakistan to review and evaluate the country’s performance on implementation of the loan program — the $6 billion extended fund facility (EFF) given to the country. The IMF mission will... Read More
 

IMF mission arrives in Pakistan to evaluate performance under loan programme

The Dunyanews.tv (Oct 27, 2019)
ISLAMABAD (Dunya News) – The International Monetary Fund (IMF) has sent its mission to review and evaluate Pakistan’s performance on implementation of its 39-month-long extended fund facility (EFF) worth $6 billion to the debt-ridden country as it hopes to secure the next tranche of approximately $460 million. The IMF mission will review Pakistan’s performance... Read More
 

Getting Pakistan out of FATF greylist: PM approves new strategy

The News (Oct 27, 2019)
ISLAMABAD: The Prime Minister, Imran Khan, formally approved a new strategy for implementation of 27 conditions of the Paris-based Financial Action Task Force (FATF) to get Pakistan out of its grey list. Imran chaired a high level meeting of the whole economic team as well as representatives of business community here on Saturday. The prime minister congratulated the departments... Read More
 

US budget deficit soars to almost $1 tn, highest since 2012

The Urdupoint.com(Oct 26, 2019)
Washington, (APP - UrduPoint / Pakistan Point News - 26th Oct, 2019): America's budget deficit soared to nearly $1 trillion in the 2019 fiscal year as government borrowing swelled, the US Treasury announced Friday. The fourth straight year of broadening budget gaps underscored a new tolerance for yawning fiscal imbalances in the current political era. Republican... Read More
 

PM urges nation to pay taxes to build Pakistan

The Pakistan Today (Oct 26, 2019)
ISLAMABAD: Prime Minister Imran Khan on Friday urged citizens to play their role in the country’s progress and development by paying due taxes. Speaking to the Federal Board of Revenue (FBR) and National Database Registration Authority (NADRA) chairpersons, the premier emphasised the need for broadening the country’s tax base in order to provide the masses the best facilities. “Expanding...Read More
 

In Pakistan, businessmen worried about impact of sit-in on economy

The Express Tribune (Oct 25, 2019)
LAHORE: The upcoming Azadi March and possibility of yet another sit-in by opposition political parties have sparked a fresh wave of concern among the business community of Pakistan. Though the planned sit-in will take place in Islamabad, still businessmen, especially those focused on the export and import business, feel the political chaos would have adverse... Read More
 

In Pakistan, businesses continue to borrow amid economic slowdown

The Express Tribune (Oct 24, 2019)
KARACHI: Although Pakistan is facing an economic slowdown and there is a perception that almost every business is facing hardship, not all is bad. A few of the prominent businesses have continued to borrow more and make investments during these difficult times. The real estate sector, car manufacturers, information & telecommunications and pharmaceutical sectors remained... Read More
 

Sri Lanka parliament passes ambitious interim budget ahead of presidential election

The Reuters (Oct 24, 2019)
COLOMBO (Reuters) - The Sri Lankan parliament on Wednesday passed an ambitious interim budget weeks before a presidential election, with 1.47 trillion rupees ($8.11 billion) in spending for the first four months of 2020. The interim budget, passed unanimously in the 225-member parliament, expects 745 billion rupees in government revenue in the first four months of ... Read More
 

Pakistan seeks financing for CPEC’s western route

Express Tribune (Oct 23, 2019)
ISLAMABAD: Pakistan has once again sought Chinese financing for the western route of the China-Pakistan Economic Corridor (CPEC), requesting Beijing to sign a bilateral framework agreement for implementing the scheme that largely remains on papers due to funding constraints. The request was made during a meeting of the CPEC Joint Working Group on Transport Infrastructure ... Read More
 

2020 EU budget: Council cannot accept EP amendments

https://www.consilium.europa.eu (Oct 23, 2019)
The Council has informed the European Parliament that it cannot accept all the amendments for the 2020 EU budget adopted today in the Parliament’s plenary. This triggers a three-week conciliation process, which will start on 29 October. The Council and the Parliament will have until 18 November to bridge their differences... Read More
 

Global growth downgrade masks underlying economic strength

The Financial Times (Oct 22, 2019)
The IMF has sharply downgraded its forecast for global economic growth to its lowest level since the great recession of 2008-09 — but fears of another contraction are overblown, most data suggest. In private, policymakers are gloomy about the outlook. But the current slowdown — with just below 2 per cent growth per capita forecast for 2019 — would be a better performance ... Read More
 

IMF team to visit Pakistan as per schedule

The News (Oct 22, 2019)
ISLAMABAD: Despite JUI-F’s march, the IMF’s review mission is scheduled to visit Islamabad from October 28 for holding parleys with Pakistani authorities under $6 billion Extended Fund Facility (EFF). Pakistani official sources insist that there is no change so far in the upcoming visit of IMF review mission. The IMF’s review mission will stay in Islamabad for two weeks for holding technical and policy... Read More
 

Attacking Pakistan’s Economy Via FATF

The Nation (Oct 21, 2019)
Pakistan is getting consistent blows from inimical International pro-Indian groups, the likes of FATF, for instance, if one can say. Hybrid war model has been launched against Pakistan as a joint venture of USA & India, which is being used to shatter our economy and derail our national progress. The retention of Pakistan in the grey list is a big jolt to its already fragile economy. Moreover, it has... Read More
 

3.3pc growth in FY19, govt policies have started making an impact: Finance Ministry

The Business Recorder (Oct 21, 2019)
ISLAMABAD: Ministry of Finance has said that the government's macroeconomic adjustment and demand management policies for stabilization have started making an impact as visible in the moderate growth of 3.3 percent in the FY2019. As well as introduction of a host of measures to bring down inflation, jack up economic activities, strengthening of social security...Read More
 

Pakistan will achieve all FATF targets in time: Qureshi

The Express Tribune (Oct 20, 2019)
MULTAN / ISLAMABAD: Foreign Minister Shah Mehmood Qureshi on Saturday said the incumbent government would achieve all targets of the Financial Action Task Force (FATF) and get the country out of the anti-money laundering body’s grey list. Talking to media, he said, “India has failed to get Pakistan included in the FATF blacklist... Read More
 

Economy on the right path, Hafeez Shaikh tells US investors

The Express Tribune (Oct 20, 2019)
ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has said that Pakistan’s economy is on the right path to stabilisation and the US businesses should benefit from investment opportunities available in the country. “The US companies should expand their footprint in Pakistan,” said the finance adviser while attending a roundtable... Read More
 

Pakistan's economy moving forward on path of stability

The Radio.gov.pk (Oct 19, 2019)
Advisor to Prime Minister on Finance, Dr Abdul Hafeez Shaikh has said that Pakistani economy is now moving forward on the path of progress and stability. He was speaking at a luncheon hosted by Pakistan Business Council in the honour of visiting Pakistani economic team in Washington. Dr Hafeez Shaikh informed the participants about current economic situation of... Read More

PM lauds his team for ‘turning around’ Pakistan’s economy

The Business Recorder (Oct 19, 2019)
Prime Minister Imran Khan has lauded his government for turning around Pakistan's economy within a year. In a tweet, the premier said that it is a great achievement of our economic team to turn around the economy within a year. The PM said foreign direct investment has witnessed an increase of 111.5 percent while foreign private investment has surged by 194 percent during this period... Read More

Economy on path to recovery

The Daily Times (Oct 18, 2019)
During the last one week, there were at least 39 news items that were worthy of big headlines; however, none of these were neither highlighted in print media nor discussed in talk shows. Perhaps, influenced by the opposition parties’ propaganda accusing the PTI government of the economic mess, they conveniently forgot that it was created during the last 10 years. It has to be mentioned... Read More

Pakistan warned to curb terrorist financing

The Financial Times (Oct 18, 2019)
Pakistan has been given an explicit warning that it must do more to curb terrorist financing, as it avoided being blacklisted by a global financial watchdog over its failure to tackle the issue. The Financial Action Task Force, the standard-setter on money laundering and terrorism funding, ruled it would keep Pakistan on its “greylist” until its next review in four months’ time, a boost for Prime Minister... Read More
 
Budget Study Centre   Issue 51 Oct 17, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign exchange: SBP reserves jump $56m to $7.8b

Express Tribune (Oct 17, 2019)
KARACHI: The foreign exchange reserves held by the central bank increased 0.72% 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. However, financial assistance from the United Arab... Read More
 

IMF predicts Pak economic turnaround from 2020

The News (Oct 17, 2019)
WASHINGTON: The International Monetary Fund (IMF) has estimated increase in economic growth for Pakistan after the year 2020. During a press conference here on Wednesday, Deputy Director Research of the IMF, Gian Milesi-Ferretti, observed that Pakistan has started implementing an ambitious programme with the IMF. "There's a need for a substantial fiscal adjustment. The deficit... Read More
 

Pakistan's debt to rise to over 78% of GDP: IMF

The Express Tribune (Oct 16, 2019)
ISLAMABAD: A new report, issued by the International Monetary Fund (IMF) on Wednesday, has said Pakistan’s public debt may surge this year to 78.6% of the total size of its economy, which is not only higher than the previous year but also in violation of an act of the parliament. The Global Financial Stability Report further said the budget deficit -gap between expenditures and revenues... Read More
 

IMF keeps macroeconomic projections unchanged

The Express Tribune (Oct 16, 2019)
ISLAMABAD: The International Monetary Fund (IMF) has kept Pakistan’s macroeconomic projections unchanged in its World Economic Outlook report but has showed a slight increase in the unemployment rate, indicating the impact of slowing economy. The global lender on Tuesday released the “World Economic Outlook, Global Manufacturing Downturn, Rising Trade Barriers’’... Read More
 

Pakistan Faces Blacklisting Over Terrorism Financing and Money Laundering

The Time (Oct 15, 2019)
(ISLAMABAD) — Pakistan is trying to avoid getting blacklisted by the Financial Action Task Force, a global watchdog, when it meets Wednesday in Paris. A report earlier this month by the task force’s Asia Pacific Group, which monitors Pakistan’s progress, is not encouraging. The report says Pakistan has fully implemented only one item from a list of 40 measures that the country should be... Read More
 

Hafeez flies to US to attend IMF/WB annual meeting

The News (Oct 15, 2019)
ISLAMABAD: Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh has flown to US for attending annual meeting of IMF/World Bank this week and on sidelines he will finalise schedule of next IMF review mission. Top official sources pointed out that the World Bank presented horrifying report about Pakistan’s economy indicating lowest real GDP growth of 2.4 percent, public ... Read More
 

Pakistan likely to miss inflation, public debt targets

Express Tribune (Oct 14, 2019)
ISLAMABAD: The World Bank has cut Pakistan’s economic growth forecast for the next two years and also projected that Prime Minister Imran Khan’s government would miss inflation, public debt, and fiscal deficit reduction targets. The findings that the WB reported in its annual flagship report, the South Asia Economic Focus Fall 2019, have underpinned challenges that the government will face at least till the... Read More
 

FATF to discuss Pakistan’s measures today

The Express Tribune (Oct 14, 2019)
ISLAMABAD: The Financial Action Task Force (FATF) will discuss today (Monday) steps taken by Pakistan to stop money laundering and terrorist financing in its plenary meeting that has started in Paris. Federal Minister for Economic Affairs Hammad Azhar is leading Pakistani delegation that will have formal talks with the global body. Representatives of more than 200 countries and... Read More
 

Development strategy, not charter of economy

Daily Times (Oct 13, 2019)
Pakistan’s national assembly has a tradition of hosting the most interesting budget sessions. Similar political antics are replayed every year; providing one with the impression that the theatrics performed by the members are not spontaneous but rehearsed and orchestrated, even when they are not. The house erupts into a ruckus soon after the Finance Minister presents the budget. The opposition... Read More
 

Trade and fiscal deficits are under control: Hafeez Shaikh

The Express Tribune (Oct 12, 2019)
ISLAMABAD: The ills of Pakistan’s economy – trade and fiscal deficits – have been brought under control during the first quarter, both key indicators have shown improvement by approximately 35%, announced Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh on Saturday. While addressing a press conference in Islamabad, he said that the trade deficit... Read More
 

Trade deficit narrows 35% to 5.7 billion in Q1

The Express Tribune (Oct 12, 2019)
ISLAMABAD: Pakistan’s trade deficit has narrowed nearly 35% to $5.7 billion in the first quarter due to compression of imports but the government must now start worrying about exports that are not picking up despite an Rs80-billion hit on revenues and inflicting a huge cost to the economy. Trade figures that the Pakistan Bureau of Statistics (PBS) released on Friday showed... Read More
 

In Pakistan, large retailers to link outlets with FBR by Dec 1

The Express Tribune (Oct 11, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday notified December 1, 2019 as the deadline for all large retailers to link their retail outlets with its electronic system aimed at capturing their real income. In case, the large-sized retailers fail to link their systems with the FBR, they would not be entitled to the reduced 14% sales tax, according to the FBR’s notification...Read More
 

IMF predicts govt’s gross debt to rise to 78.6 percent

The Pakistan Today (Oct 11, 2019)
The International Monetary Fund (IMF) has projected an increase in Pakistan’s gross debt by 1.9 percent to 78.6 percent of the Gross Domestic Product (GDP) in 2020 against 76.7 percent in 2019, reported Business Recorder. According to the IMF report “Fiscal Monitor, How to Mitigate Climate Change,” it is projected that the government gross debt would rise to 78.6 percent of GDP in 2020... Read More
 

SBP reserves increase $16m to $7.7b

Express Tribune (Oct 10, 2019)
KARACHI: The foreign exchange reserves held by the central bank increased 0.21% 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. However, financial assistance from the United Arab ... Read More
 

Moody's cuts growth forecast for India to 5.8%

Express Tribune (Oct 10, 2019)
NEW DELHI: Moody’s Investors Service on Thursday cut its growth forecast for India for the fiscal year that began in April to 5.8% from 6.2% and said a weaker growth outlook will dampen the prospects for fiscal consolidation. The ratings agency had lowered India’s growth forecast to 6.2% from 6.8% in August. India’s growth fell to a six-year low of 5% in the April-June quarter led ... Read More
 

Pakistan yet to receive foreign aid worth $21.6b

Express Tribune (Oct 09, 2019)
ISLAMABAD A staggering $21.6 billion worth of foreign economic assistance has remained undisbursed due to the long completion period of projects and also because of systemic inefficiencies that have put an extra burden on Pakistan in the shape of commitment charges on idle money. Out of the $21.6 billion, there was $3.9 billion worth of foreign grants that the international donors committed to... Read More
 

Russia Gazettes Law Implementing Tax Overhaul Measures of 2019 Budget Package

Bloombergtax.com (Oct 09, 2019)
The Russian Official Gazette Sept. 29 published a law implementing tax overhaul measures announced in the 2019 budget package. The law includes measures: 1) amending provisions for valuing intangible assets for transfer pricing purposes; 2) implementing amendments for mutual agreement procedures (MAP) to resolve transfer pricing and DTA disputes; 3) clarifying expense... Read More
 

Global Economy Suffering "Synchronized Slowdown", Says IMF Chief

The ndtv.com (Oct 08, 2019)
WASHINGTON: Grinding trade disputes are undermining the global economy, which is set to see its slowest growth in nearly a decade, the new IMF chief said Tuesday. Research shows the impact of the trade conflict is widespread and countries must be ready to respond in unison with cash infusions, Kristalina Georgieva said in her first speech as managing director of the International Monetary... Read More
 

World Bank sees Pakistan’s digital finance potential at $36 billion

The News (Oct 08, 2019)
KARACHI: The World Bank is bullish on Pakistan’s cashless economy potential, estimating it at significant $36 billion and projecting a straight seven percent boost to GDP with a real-time retail payments gateway, but all, it says depends on a widespread use of online financial transactions. “To unlock Pakistan’s $36 billion digital finance potential, it will take high-level commitment, faster payments... Read More
 

ADB approves $200 million for Pakistan's social welfare program

Dunyanews.com (Oct 07, 2019)
ISLAMABAD (Dunya News) – The Asian Development Bank (ADB) has approved additional funds of $200 million for Pakistan under the social welfare programme and the Benazir Income Support Programme (BISP). The amount will be utilised for social protection and help of 855,000 women under the BISP. Earlier in September, the ADB’s Asian Development Outlook 2019 (ADO) affirmed that Pakistan... Read More
 

Govt’s measures stabilise economy, rupee: Hammad Azhar

The News (Oct 07, 2019)
LAHORE: Federal Minister for Economic Affairs Hammad Azhar Sunday said the government had managed to stabilise economy as well as improve rupee value against dollar by taking instant and effective measures. Addressing a news conference along with Punjab Industry and Trade Minister Mian Aslam Iqbal here, he said country’s economy would now enter into growth phase. He mentioned...Read More
 

China won't be able to save the world economy this time

The Japantimes.com (Oct 06, 2019)
NEW YORK – U.S. recession indicators are growing stronger and there’s one bigger-than-usual reason why the world should be worried: China isn’t coming to the rescue this time. Last week alone, a gauge of U.S. manufacturing unexpectedly fell to its weakest reading in a decade and payrolls at private companies grew less than forecast. Economists are starting to... Read More
 

Pakistan’s economy is expected to stabilise. Is growth next?

The Scroll.in (Oct 06, 2019)
By now almost everyone acknowledges that the consumption-driven growth model that Pakistan has come to rely on to achieve high growth rates is unsustainable. Most commentators also agree that Pakistan must shift towards exports as the key driver of growth. This narrative has given significant room to the present Pakistan Tehreek-i-Insaf government to implement... Read More
 

Analysts: Pakistan Still at Risk of Being Placed on FATF Blacklist

The Voanews.com (Oct 05, 2019)
Pakistan remains at risk of being placed on the "blacklist" of Financial Action Task Force (FATF), a global watchdog monitoring terror financing and money laundering around the world, experts warn. The global watchdog's regional body — Asia Pacific Group (APG) — examined Pakistan's performance on key issues related to terror financing and money laundering at a two-day preliminary... Read More

Missing IMF revenue target may lead to mini-budget: PBIF chief

The Business Recorder (Oct 05, 2019)
Pakistan Businessmen and Intellectuals Forum (PBIF) President+ Mian Zahid Hussain has expressed fear that despite best efforts the government has missed quarterly revenue target set by the IMF, which may lead to a mini-budget. The revenue target of Rs1,071 billion has been missed by Rs116 billion despite the imposition of new taxes worth Rs735 billion and holding back refunds, he added. Mian... Read More

Sri Lanka budget deficit to expand to 5.4 to 5.6-pct in 2019

The Economynext.com (Oct 04, 2019)
ECONOMYNEXT – Sri Lanka’s budget deficit may reach 5.6 percent of gross domestic product in 2019, Treasury Secretary R H S Samaratunga said, which would be around the same levels as in 2018. The revised deficit could be 5.4 to 5.6 percent, Samaratunga said. Sri Lanka was originally targeting 4.4 percent of GDP for 2019. But the 5.6 percent out-turn would be around the same levels as the 5.4 ... Read More

Govt projected to add Rs19.3tr to public debt in 5 years

The Express Tribune (Oct 04, 2019)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government is projected to add Rs19.3 trillion to the public debt in its five-year term – which will be equal to 80% of the debt piled up in the past 71 years, and the debt will remain at unsustainable levels, showed figures of the Ministry of Finance. The public debt, which was at Rs24.2 trillion or 72.1% of gross domestic... Read More
 
Budget Study Centre   Issue 50 Oct 03, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign exchange: SBP reserves dip $724m to $7.7b

Express Tribune (Oct 03, 2019)
KARACHI: The foreign exchange reserves held by the central bank plunged 8.54% on a weekly basis, slipping below the $8-billion mark, 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. However, financial... Read More
 

Inflation jumps 11.4pc in September

The Dawn (Oct 03, 2019)
ISLAMABAD: Inflation surged by 11.4 per cent year-on-year in September from, reported the Pakistan Bureau of Statistics (PBS) on Wednesday. Inflation, measured through the Consumer Price Index (CPI), edged up by 0.77pc over the previous month after PBS revised its calculation methodology. Based on the new base year (2015-16), September inflation came in at 11.37pc... Read More
 

Punjab finance minister seeks clarity ahead of PFC award

The Express Tribune (Oct 02, 2019)
LAHORE: Punjab Finance Minister Hashim Jawan Bakht asked the finance department to get explanations on Section 189 and 190 of new Local Government Act 2019 so that no lacuna is left once the provincial government awards the next Provincial Finance Commission (PFC). The minister also instructed the local government department to provide updated records of local government... Read More
 

Pakistan will not return to IMF again: SBP chief

The Express Tribune (Oct 01, 2019)
KARACHI: The State Bank of Pakistan (SBP) governor is quite hopeful that the latest International Monetary Fund (IMF) loan programme will be the last one and Pakistan will not need to go back to the lender in future. The recent structural reforms implemented under commitments made with the IMF had started providing much-needed support to the economy to enable it to stand on its own feet... Read More
 

Pakistan, Germany agree to boost economic cooperation

The APP (Oct 01, 2019)
ISLAMABAD: Senate Chairman Muhammad Sadiq Sanjrani Tuesday said that Pakistan valued its bilateral relations with Germany and desired to further expand mutual collaboration in different sectors to bring people of the both the countries closer. He emphasized the need to further strengthen the existing bilateral relations between Pakistan and Germany through... Read More
 

Sri Lanka budget deficit reaches 4.4-pct of GDP by July

The Economynext.com (Sep 30, 2019)
ECONOMYNEXT – Sri Lanka’s budget deficit expanded to 684 about 4.4 percent of estimated gross domestic product by July 2019, up from 3.2 percent in 2019, as revenues were hit in the wake of a currency fall last year, official data shows. Sri Lanka budgeted a 4.4 percent of GDP deficit (685 billion rupees) for the full year 2019. Total revenues fell 4.4 percent from a year earlier to 1,031.9 billion rupees to... Read More
 

Macro-economy, IMF and local pressures

The Daily Times (Sep 30, 2019)
The IMF mission recently on a visit to Pakistan gave an optimistic prognosis as Pakistan’s economy is recovering and has shown progress with a decline in current account deficit and has projected a growth rate of 2.4 percent. The IMF mission stated that “Pakistan’s economic program is off to a promising start, but decisive implementation is critical to pave the way for stronger and sustainable... Read More
 

Contrasting outlook: Economists upbeat on growth prospects

The Pakistan Today (Sep 29, 2019)
KARACHI: Pakistan based economists have estimated growth of gross domestic product (GDP) better than the ones anticipated by international and regional lending institutions for the current fiscal year 2019-20. They expected GDP growth within the range of 2.5-3.5% compared to the International Monetary Fund’s (IMF) forecast of 2.4% and Asian Development Bank’s (ADB) 2.8% for ... Read More
 

Pakistan on fast track to reap CPEC benefits, says Chinese envoy

The Pakistan Today (Sep 29, 2019)
ISLAMABAD: Chinese Ambassador to Pakistan Yao Jing on Sunday lauded Pakistan’s rising status as an economically developing country, as he revealed significant progress made on the China-Pakistan Economic Corridor (CPEC) projects along with upcoming developments. He expressed was addressing the participants of the ‘Friends of Silk Road’ forum her held under the aegis... Read More
 

Consumers show low confidence in Pakistan’s economy: survey

The Express Tribune (Sep 28, 2019)
ISLAMABAD: People’s confidence in the economy has declined in Pakistan as compared to India and global trends but respondents still have hope for improvement in the situation in the next six months, according to an Ipsos opinion poll. Ipsos – global market research and consulting firm – has conducted a survey in Pakistan for its first wave of Global... Read More
 

Peddling knowledge to those on a budget

The Express Tribune (Sep 28, 2019)
ISLAMABAD: In a country where the pristine aisles of high-end bookstores often cater only to the elite, many throng weekly book bazaars in the quest to find more affordable and often used editions of their favourite pieces of literature. Laid on sidewalks or piled by a public square, these roadside vendors offer a variety of books ranging from history and politics to... Read More
 

ADB’s assessment

The Express Tribune (Sep 27, 2019)
Pakistan’s economy is having a hard time is no revelation. While the incumbent government, led by Prime Minister Imran Khan, is doing all it can to treat the ills, many an economic expert believe it is the remedy that has worsened the malady. The policies adopted by current economic managers, meant to achieve economic stability in a country with negligible FDI and exports totalling half as much as...Read More
 

Pakistan in midst of economic crisis says UN body

The Dawn (Sep 27, 2019)
ISLAMABAD: The ‘Trade and Development Report 2019’ released by the United Nations on Thursday says that Pakistan’s economic crisis has not been resolved despite the fact that support from China and Saudi Arabia and a large IMF loan have helped address the immediate problem. In a brief comment on Pakistan in the Asia section, UNCTAD’s annual flagship report went on to say that “Pakistan is in the midst... Read More
 

Pakistan is no longer a pawn, a joke, a bystander on the world stage'

The News (Sep 26, 2019)
Pakistan has emerged as a responsible global player and a harbinger of peace under the leadership of Prime Minister Imran Khan, according to an article recently published in British publication The Independent. It was just a year back, that cricketer-turned-politician Imran Khan was unable to suppress a jubilant expression as his party Pakistan Tehreek-e-Insaf was elected into power. His victory... Read More
 

Slowdown to persist as stabilisation advances: ADB

The Dawn (Sep 26, 2019)
ISLAMABAD: The Asian Development Bank (ADB) on Wednesday forecast Pakistan’s economy to slow down further and set the GDP growth target at 2.8 per cent for FY20 given the need for government to address sizable fiscal and external balances. The ADB’s ‘Asian Development Outlook 2019 Update’ said fiscal adjustments would suppress domestic demand, and demand... Read More
 

Pakistan economy continues to stabilize amidst strong headwinds

The Dunyanews.tv (Sep 25, 2019)
ISLAMABAD (Web Desk) – Pakistan’s economy in fiscal year (FY) 2019, which ended on 30 June, is showing signs of recovery as the government’s fiscal consolidation and austerity measures to address the structural weaknesses started to take effect. However, the growth rate moderated to 3.3% during the period reflecting persistent macroeconomic imbalances and heightened external challenges... Read More
 

Asian Development Bank issues outlook report for Pakistan

The Dawn (Sep 25, 2019)
The Asian Development Bank's Asian Development Outlook 2019 (ADO) reaffirms that the country's economy is expected to grow slower than last year, with GDP growth projected at 2.8 per cent in fiscal year 2020. The ADO, released on Wednesday, notes that growth in Pakistan had decelerated during fiscal year 2019 and this reflected "lower investment amid policy uncertainty... Read More
 

Economic Watch: An open China, a beacon for world economy

The XINHUANET (Sep 24, 2019)
BEIJING, Sept. 24 (Xinhua) -- From a semi-closed nation that barely had any overseas contact, to a world economic engine with high-level opening up in all aspects, China has made miracles in expanding its market and contributing to the world. Since China set up four special economic zones in Shenzhen, Zhuhai, Shantou and Xiamen in 1980, the country's steps of opening up its market have never stopped... Read More
 

Afghan transit trade ‘hurting Pakistan's economy’

The Arab News (Sep 24, 2019)
September 24: The Express Tribune report by Rizwan Asif states that the Directorate General of Trade functioning under the administration of Federal Board of Revenue (FBR) has revealed in its report that the Afghan transit and the Afghan imports were negatively affecting Pakistan’s economy and were the basic components of black economy in Pakistan... Read More
 

IMF Program

The Business Recorder (Sep 23, 2019)
The International Monetary Fund (IMF) team led by Director Middle East and Central Asia Department Jihad Azour, including the mission leader for the 6 billion dollar Extended Fund Facility programme approved by the Fund Board on 3 July 2019, in a handout stated that "the near term macroeconomic outlook is broadly changed from the time of the programme approval with growth... Read More
 

Pakistan’s economy heading in right direction: PM

The APP (Sep 23, 2019)
NEW YORK, Sep 23 (APP):Prime Minister Imran Khan Monday said despite the momentous challenge of the biggest ever current account deficit inherited by his government, they had been restructuring the country’s economy which has now been put on the right track. Responding to questions during a conversation with in the US based think-tank Council on Foreign Relations...Read More
 

Over 30 percent of Pakistan’s workers laid off amid economic meltdown — industry insiders

The Arab News (Sep 22, 2019)
KARACHI: Pakistan’s economic meltdown has eroded between 30 and 40 percent jobs from the country’s labor market, pushing more people below the poverty line, as the country takes tough measures to implement conditions attached to an International Monetary Fund (IMF) bailout package, traders and economists said. Pakistan’s ruling... Read More
 

Pakistan gets $1.5b worth of foreign loans in Jul-Aug

The Express Tribune (Sep 22, 2019)
ISLAMABAD: Pakistan received $1.5 billion or Rs237 billion worth of foreign loans in first two months of the current fiscal year, higher by 108% over the same period of the previous year, aimed at meeting the country’s financing needs. Foreign disbursements have started picking up following signing of the International Monetary Fund (IMF) loan programme, which seeks $38... Read More
 

US, Pakistan to improve economic engagement

The News (Sep 21, 2019)
ISLAMABAD: The United States and Pakistan on Friday agreed to concentrate American-funded programs on economic growth, improving energy sector and other priority areas. The agreement was made during a meeting between the US Ambassador to Pakistan Paul Jones and Minister for Economic Affairs Hammad Azhar. Officials of the United States Agency... Read More

Inflation to dip, risks still there

The News by Mehtab Haider (Sep 21, 2019)
ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to avoid repetition of one-off factors that escalated the worse than expected budget deficit, in the last fiscal and now it should not jeopardise the current fiscal year’s targets. “The IMF staff and Pakistani authorities have analysed the worse than expected fiscal results of FY2018/19, which were partially the ... Read More

Russian budget: Stability still a priority but pressure to spend remains

The MENAFN (Sep 20, 2019)
(MENAFN - ING) The budget still focuses on macro stability The new parameters of the 2019-2022 budget, that received preliminary approval by the government is advertised as focused on economic growth, however, new projections are not that different from the ones presented a year ago. We interpret this as more of a verbal response to GDP growth concerns rather than an actual... Read More

IMF asks Pakistan to consider longer SBP governor term

The News (Sep 20, 2019)
KARACHI: International Monetary Fund (IMF ) on Thursday proposed Pakistan to extend the central bank governor’s term up to five years from three to strengthen the institution’s independence, which has been questioned in past owing to repeated political interference in monetary and exchange rate policies. “The tenure of the governor needs to be lengthened... Read More
 
Budget Study Centre   Issue 49 Sep 19, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign exchange: SBP reserves jump $138m to $8.6b

Express Tribune (Sep 19, 2019)
KARACHI: The foreign exchange reserves held by the central bank increased 1.63% 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. However, financial assistance from the United Arab... Read More
 

The IMF comes a calling

The Business Recorder (Sep 19, 2019)
The International Monetary Fund (IMF) will not revise targets already agreed, so stated the Fund's Director for the Middle East and Central Asian Department during the press conference held jointly with the Pakistan economic team led by Hafeez Sheikh and Reza Baqir. This should be a source of serious concern for Pakistan's non-political economic managers and more particularly for Prime Minister... Read More
 

Pakistan taking economic reforms, showing impressive performance: IMF

The Business Recorder (Sep 18, 2019)
ISLAMABAD: IMF’s Director Middle East and Central Asia Jihad Azour on Tuesday said Pakistan had showed impressive performance by carrying out economic reforms in accordance with the Extended Fund Facility of the International Monetary Fund (IMF). “It is a new programme and it is important to give some time to the government for taking more reform measures to show good... Read More
 

Where is the economy going?

The News (Sep 18, 2019)
Mohammad Ali Tabba’s interview regarding business conditions has sent shockwaves across the country. Tabba is one of Pakistan’s best known and dynamic businessmen. Over the last many years, his group has invested heavily in the country in many sectors and can rightly be regarded as a major contributor to Pakistan’s economic growth. So, when negative comments come from a... Read More
 

Unchanged discount rate: SBP decision to play havoc with budget deficit: expert

The News (Sep 17, 2019)
ISLAMABAD: The State Bank of Pakistan’s decision to keep discount rate unchanged at 13.25 percent will play havoc with the budget deficit as one percent policy rate exceeds deficit to the tune of Rs130 billion on per annum basis. The Ministry of Finance has estimated that the one percent hike in policy rate translates into increasing budget deficit to the tune of Rs130 billion on annual bases. “When real... Read More
 

Teachers demand fixing of minimum 7pc budget for education

The News (Sep 17, 2019)
Islamabad: Pakistan Teachers Association on Monday demanded to the government to fix seven per cent as minimum budget out of total for the education sector in the country. While talking to APP, the Senior Leadership of the Association urged the government to implement Uniform Education System properly and it should be according to the Ideology of Pakistan. They also called for bringing... Read More
 

SBP retains interest rate at 13.25% for next two months

The Express Tribune (Sep 16, 2019)
KARACHI: In line with the market expectations, the State Bank of Pakistan (SBP) has left the key interest rate unchanged at an eight-year high of 13.25% for the next two months. The SBP Monetary Policy Committee (MPC) announced status quo in the rate to control inflation, which remained high in the first two months (July-August) of the current fiscal year 2020 due to late impact from the... Read More
 

FATF and IMF conditions: Pakistan may seek US intervention for relief

The News (Sep 16, 2019)
ISLAMABAD: Pakistan may seek US intervention for relief from the FATF and IMF’s tough conditions, as both would be reviewing its position in the light of conditions set out by them. The final meeting of the FATF will be held in October in Paris which will decide whether to keep Pakistan in the grey list or place it out, a federal cabinet member told The News. “The FATF is going to... Read More
 

Rudderless economy idles in reform-resistant Pakistan

The News (Sep 15, 2019)
LAHORE: Economy recently suffered two tremors in a row. One of them was a disappointing increase of 1.21 percent in exports in August, while the other a double-digit fall in remittances last month, as compared to the money sent home by overseas Pakistani workers in the month of July 2019. The current account deficit has definitely reduced due to shrinking imports, but what good will ... Read More
 

IMF SOS mission to arrive in Pakistan

The Dunya News (Sep 15, 2019)
ISLAMABAD (Dunya News) – International Monetary Fund (IMF) is sending its SOS (Save Our Soul) mission to Pakistan for suggesting ways to the cash-strapped government to curtail the budget deficit being faced by the country. The IMF expressed concern over Pakistan’s economic performance in the first two months and is sending its SOS mission to Islamabad. The mission will be vising Pakistan to... Read More
 

Remittances dive 17% after Eid boost

The Express Tribune (Sep 14, 2019)
KARACHI: Remittances sent home by overseas Pakistanis showed a decline of 17.1% in August 2019 because of the post-Eidul Azha impact. Overseas Pakistanis remitted $1.7 billion in August, down $348.4 million compared to inflows of $2.04 billion in the preceding month, according to data released by the State Bank of Pakistan (SBP) on Friday. Inflows had surged in the past two months on account of... Read More
 

Pakistan needs to mobilise domestic tax revenue: IMF

The Express Tribune (Sep 13, 2019)
ISLAMABAD: International Monetary Fund (IMF) spokesperson Gerry Rice has said that one of the key elements of the global lender’s Pakistan programme was the need to mobilise domestic tax revenue to fund the much needed social and development spending while placing debt on a firm downward trend. “And this was actually something that our acting Managing Director, David Lipton...Read More
 

Pakistan likely to miss IMF's tax refund condition

The Express Tribune (Sep 13, 2019)
ISLAMABAD: Pakistan is set to miss the International Monetary Fund’s (IMF) condition to refund Rs75 billion to taxpayers in the first quarter despite an incentive by the global lender that will soften the tough primary budget deficit reduction target if the country performs better in tax refunds. Under the $6 billion IMF loan deal, Pakistan is required to reduce the primary budget deficit – calculated... Read More
 

An autopsy of the Pakistan’s economic crisis

Daily Times by Salahuddin Bhutto (Sep 12, 2019)
Pakistan is the country of 208 million people. Its population is growing at the rate of nearly three percent annually. This means the country will need more and more funds and infrastructure to sustain quality life of its people in future. However, an autopsy of the state’s present economic outlook has revealed that the past and current economic policies have failed to achieve long-term objectives... Read More
 

Pakistan’s fate at FATF still hangs in balance

The Express Tribune (Sep 12, 2019)
ISLAMABAD: Pakistan has made some good progress in addressing deficiencies in combating the financing of terrorism framework but its fate still hangs in balance as more work is still needed on the most critical indicators –the terror financing investigations and prosecution. The Financial Action Task Force’s (FATF) Asia-Pacific Joint Group (AP-Joint Group) held face-to-face meetings... Read More
 

Russia’s Expo Bank takes keen interest in Pakistan’s financial sector

Pakistan Today (Sep 11, 2019)
ISLAMABAD: Expobank Chairman Igor Vladimirovich Kim has expressed keen interest to invest in Pakistan’s financial sector. Talking to Privatisation Minister Muhammad Mian Soomro and Board of Investment (BoI) Chairman Zubair Gilani at the BoI Headquarters on Wednesday, Kim said that his team would analyse the opportunities for the procurement of public sector entities that... Read More
 

Govt working on IMF’s demand

The Nation (Sep 10, 2019)
ISLAMABAD - The government is working on International Monetary Fund’s demand to ensure the system to electronically monitor the production and supply of cigarettes. Chairman Federal Board of Revenue (FBR) Shabbar Zaidi has summoned a meeting of all tobacco manufacturers on September 12 2019 in order to have their views for installation of Track and Trace system... Read More
 

Pakistan enters 2nd round of talks with FATF

The Express Tribune (Sep 09, 2019)
ISLAMABAD: Pakistan has entered the second round of talks pertaining to the implementation of the Financial Action Task Force (FATF) action plan in Bangkok, said sources in the Ministry of Finance, The Pakistani delegation is led by Minister for Economic Affairs Hammad Azhar and includes officials from the Federal Investigation Agency, State Bank of Pakistan, the Federal Board of ... Read More
 

China expedites work on $1.7bn Matiari-Lahore transmission line

Pakistan Today (Sep 09, 2019)
BEIJING: China has expedited its initial work on the Matiari-Lahore high-voltage direct transmission line project valued at $1.7 billion. To kick off the project, a Chinese company has shipped power equipment to Pakistan for the country’s first transmission project under the China-Pakistan Economic Corridor (CPEC) framework. Fushun Electric Porcelain Manufacturing Company (FEPMC) shipped... Read More
 

‘China plans to invest $1b in development projects in Pakistan’

Express Tribune (Sep 08, 2019)
ISLAMABAD: The pace of development projects under the China-Pakistan Economic Corridor (CPEC) is satisfactory, said Ambassador of China to Pakistan Yao Jing Talking to a delegation at the Islamabad Women’s Chamber of Commerce and Industry (IWCCI), led by its Founder President Samina Fazil, he said that that the second phase of the China-Pakistan Free Trade Agreement (CPFTA) will be finalised... Read More
 

Govt plans to raise $1b from int’l market by issuing Sukuk bonds

The Nation (Sep 08, 2019)
ISLAMABAD - Pakistan has planned to raise at least one billion dollars from international market by issuing Sukuk bonds in next couple of months that would help in building the country’s foreign exchange reserves. The federal cabinet had already allowed ministry of finance to initiate Medium-Term Notes (MTN) programme covering both Eurobonds and Sukuk. An official of the...Read More
 

0.6 percent primary deficit agreed with IMF: Government banking on Rs 800 billion non-tax revenue

The Business Recorder (Sep 07, 2019)
The government is banking on Rs 800 billion non-tax revenue from renewal of cellular licenses, privatization of two power plants and State Bank of Pakistan (SBP) profit to get close to 0.6 percent primary deficit agreed with the International Monetary Fund (IMF) under $6 billion extended fund facility (EFF). Providing details, Finance Ministry officials stated that it expects Rs 300... Read More
 

Economy not being fixed

The Pakistan Today (Sep 07, 2019)
The International Monetary Fund finds it has to set a technical mission soon after giving Pakistan a $6 billion Extended Finance Facility, because the core or primary deficit in 2018-2019 has gone far beyond all the projections. As the targets set by the IMF for the EFF were based on the reining in of the primary deficit, failure to achieve it would mean that all other targets would... Read More
 

Pakistan, Saudi Arabia review progress on energy MoUs

The Nation (Sep 06, 2019)
ISLAMABAD - Pakistan and Saudi Arabia on Thursday reviewed progress on the existing Memorandums of Understanding (MoUs) in energy sector and discussed possibilities for further expansion of mutual cooperation between the two countries in diverse fields. In a delegation level meeting, the two sides resolved to expedite the work on different MoUs signed in... Read More

IMF to Send SOS Team to Cash-strapped Pakistan to Curtail Budget Deficit

The News18 (Sep 06, 2019)
Islamabad: The IMF is sending its SOS mission to Pakistan this month for suggesting ways to the cash-strapped government to curtail the yawning budget deficit being faced by the country, according to a media report on Friday. In July, the International Monetary Fund (IMF) formally approved a USD 6 billion loan to Pakistan, which is facing "significant" economic challenges on the back of "large"... Read More
 
Budget Study Centre   Issue 47 August 22, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign investment down 22pc

Dawn (Aug 22, 2019)
KARACHI: The total foreign investment plunge d by 22 per cent in the first month of this fiscal year, reported the latest data from the State Bank of Pakistan (SBP) on Wednesday. The total investment fell to $107.2 million during July, lower by 21.64pc over $136.8m recorded in same month of the previous year. This could possibly be a worrying sign for the government which has been met ... Read More
 

Another hurdle crossed as FATF meetings loom

Dawn (Aug 22, 2019)
ISLAMABAD: The Asia-Pacific Group a regional affiliate of the Financial Action Task Force (FATF)-hasadopted Pakistan`s third Mutual Evaluation Report (MER) on strengthening of anti-money laundering and countering financing terrorism (AML/ CFT) safeguards and is expected to mal(e public its assessment shortly. The Ministry of Finance on Wednesday said the 22nd Annual ... Read More
 

Economic front of Pakistan (PTI’s one year)

The Daily Times (Aug 21, 2019)
A Year is lapsed for PTI that came into power first time with rhetoric to make a new Pakistan by brining corruption free good governance. If one may execute a quantitative analysis, economic indicators may be assumed as a tool of performance together with recovery figures through accountability and broadening of Tax Net. Good news is that the Current Account... Read More
 

Pakistan current account deficit shrinks massive 73% in July

The Express Tribune (Aug 21, 2019)
KARACHI: Pakistan’s current account deficit narrowed a significant 73% to $579 million in July, the first month of the current fiscal year, following the government’s agreement with the International Monetary Fund (IMF) on implementing tough measures for a bailout of $6 billion. The current account deficit stood at $2.13 billion in the same month of last year, the State Bank of Pakistan (SBP) reported... Read More
 

Global economic slowdown set to hit Pakistan’s exports

The Gulf Times (Aug 20, 2019)
Internews Karachi: Troubled Pakistan’s economy is feared to face a shockwave as most global economic data harbouring an undercurrent recession shows it could hurt the country’s export sector and impede remittance inflows, analysts and economists said. But, some of them also find rescuer to feeble external account position in downward trend in oil prices. Former finance ... Read More
 

Aid cut improved ties with Pakistan: Trump

The Dawn (Aug 20, 2019)
WASHINGTON: US President Donald Trump has said his country’s ties with Pakistan have improved since he cut $1.3 billion in security assistance to Islamabad, rejecting the suggestion that aid is an effective foreign policy tool. Talking to reporters at his golf resort in New Jersey on Sunday evening, the US leader also recalled his July 22 meeting with Prime Minister Imran... Read More
 

Govt. will announce Rs.900 billion development budget for the next year: Special Assistant to PM

The Techjuice.pk.com (Aug 19, 2019)
Special Assistant to the PM on Political Affairs Naeemul Haq while expressing his view on the government’s first-year performance report said that the government will announce Rs. 900 billion development budget for the next year against Rs. 500 billion of the current year. PTI govt while presenting the report claimed that the country had been put on the right track and people would start getting... Read More
 

A year in economy

The News (Aug 19, 2019)
One year ago, there was great hope when the PTI took power. Despite some very familiar faces splattered across the party, Pakistan was getting a brand new prime minister and finance minister. Imran Khan and Asad Umar took over the difficult task of steering Pakistan’s economy on August 18, 2018. On April 18, 2019, only seven months in, Asad Umar was gone. For half a decade, the PTI had insisted... Read More
 

Of 19 budgets since 2000, only five were deficit

The Express Tribune (Aug 18, 2019)
PESHAWAR: The budget outlay of the Khyber-Pakhtunkhwa (K-P) has shown that out of 19 years of provincial budgets, five budgets have been listed deficits, while 14 of them have been found to be surplus budgets in the ongoing years, starting from the year 2000. The documents released from the federal finance ministry related to Khyber-Pakhtunkhwa’s budgets since the beginning... Read More
 

Pakistani premier’s first year: economic hit and miss

The Dawn (Aug 18, 2019)
Mohammad Tariq was one of the millions of Pakistanis who voted in the July 2018 elections for first-time Prime Minister Imran Khan and his campaign to build a corruption-free Islamic welfare state, better employment and civic amenities. But for Tariq, things have even gone from bad to worse during the first year of Prime Minister Imran's government. Unlike his predecessor... Read More
 

FBR constitutes committee to finalise tax regime for traders

The Express Tribune (Aug 17, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday constituted a committee to finalise a new income tax regime for traders, as the government and the traders remain poles apart over the key issue of disclosing their identity for trading purposes. The 15-member committee has been directed to finalise a “fixed tax scheme for small traders/shopkeepers and simplified... Read More
 

Foreign exchange: SBP reserves rise 6.93% to $8.26b

The Express Tribune (Aug 17, 2019)
KARACHI: The foreign exchange reserves held by the central bank increased 6.93% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Saturday. Earlier, the reserves had spiralled downwards, falling below the $7-billion mark, which raised concern over Pakistan’s ability to meet its financing requirements. However, financial assistance from the United Arab Emirates...Read More
 

Indonesia president proposes $178bn budget for 2020 with focus on education

Pakistan Today (Aug 16, 2019)
JAKARTA: Indonesian President Joko Widodo on Friday proposed a 2,528.8 trillion rupiah ($177.56 billion) budget to parliament for 2020, focusing spending on human resources, which was central in his re-election campaign. The 2020 budget proposals set a target of 5.3pc growth in gross domestic product (GDP), the same as this year’s, although officials have often said 2019 growth would probably... Read More
 

US Aid to Pakistan reduced by $440 million

The Global Village Space (Aug 16, 2019)
News Desk |The United States has made further reductions in the aid delivered to Pakistan, reducing it by $440 million as per the commitments made under the Kerry Lugar Berman Act. The current aid is $4.1 billion, which is slightly more than half of the total amount that was promised to Islamabad in 2010. The aid was allocated to Pakistan under the Kerry Lugar Berman Act in 2009, and the... Read More
 

Pakistan’s economic situation is changing: Reza Baqir

The Pakistan Today (Aug 15, 2019)
KARACHI: Pakistan’s economy is facing with a number of problems and uncertainty but the situation is changing, said State Bank of Pakistan (SBP) Governor Reza Baqir on Wednesday while addressing the flag hoisting ceremony held at the State Bank Building to celebrate the country’s 73rd Independence Day. Baqir admitted that the economy is weak, unemployment is rising and inflation is... Read More
 

De-notify Debt Inquiry Commission immediately

The Express Tribune (Aug 14, 2019)
ISLAMABAD: According to a news story, the Debt Inquiry Commission has questioned the Ministry of Privatisation and the Ministry of Energy over the closure of Pakistan Steel Mills (PSM) and the decision to privatise liquefied natural gas (LNG)-fired power plants. Haveli Bahadur Shah and Balloki power plants, which were based on LNG, were set up during the tenure of previous Pakistan Muslim League-Nawaz... Read More
 

IMF conditionality: government repays Rs 1.3 trillion to SBP

The Business Recorder (Aug 14, 2019)
The federal government has repaid some Rs 1.3 trillion to the State Bank of Pakistan (SBP) in the first month of this fiscal year (FY19) to meet the International Monetary Fund (IMF) condition. While, obtaining a 36-month $6 billion bailout package, Pakistan has agreed with the IMF that financing from SBP for budget deficit will be eliminated to support the new monetary policy framework as the Fund... Read More
 

A $1 trillion US budget deficit is one big reason the Fed may have to cut rates

The CNBC News (Aug 13, 2019)
If low inflation, a wobbly economy and tariff jitters weren’t enough to push the Federal Reserve to lower interest rates, there’s also the simple reason of the swelling national debt. The recent debt deal struck between the White House and Congress virtually guarantees trillion-dollar deficits well into the future as well as continued acceleration of the government’s collective IOU, which is now... Read More
 

Govt converts short-term debt into long term bonds

The Express Tribune (Aug 11, 2019)
ISLAMABAD: The federal government has restructured its short-term domestic debt by quietly issuing long-term Pakistan Investment Bonds (PIBs) to the central bank, dramatically increasing the share of long-term debt to Rs15.3 trillion or 74% of the total domestic debt. The conversion of federal government’s short-term borrowings from the central bank into... Read More
 

Pakistan receives $500 million as ADB bets on economic recovery

The News (Aug 11, 2019)
KARACHI: Pakistan has received $500 million in loan from the Asian Development Bank (ADB) as the policy-based lending from the lender resumed after having remained suspended for two years due to ‘extremely high macroeconomic imbalances’, a minister said on Saturday. Minister for Economic Affairs Hammad Azhar said the first tranche of $500 million has been received from the ADB. Manila-based... Read More
 

Overseas Pakistanis send home $2.03 billion in July

The Express Tribune (Aug 10, 2019)
KARACHI: In line with market expectations, Pakistan received higher remittance inflows worth $2.03 billion from overseas Pakistanis in the first month – July – of the current fiscal year 2019-20 ahead of Eidul Azha. The inflows were almost 3% higher than the $1.98 billion received in the same month last year. July was also followed by Eidul Azha in the preceding year...Read More
 

Public debt skyrockets to Rs 31.8tr in FY19

The Express Tribune (Aug 10, 2019)
ISLAMABAD: In a dangerous development, the federal government added Rs7.6 trillion to public debt in the last fiscal year, which skyrocketed to Rs31.8 trillion by the end of June and it was equal to 71% of the total debt that the PML-N government had taken in its five-year term. The addition to public debt in the previous fiscal year was also more than the total public debt that the... Read More
 

Pakistan suspends trade ties with India. Who gains, who loses from Imran Khan’s move

The India Today (Aug 09, 2019)
NEW DELHI: Relations between India and Pakistan worsened on Wednesday when Pakistan decided to downgrade diplomatic ties with India, recall its high commissioner from New Delhi, expel the Indian envoy to Islamabad and suspend bilateral trade. These decisions were taken at a high-level meeting chaired by Pakistan Prime Minister Imran Khan in... Read More
 

IMF package to bring economic stability

The Nation (Aug 09, 2019)
PESHAWAR - Resident representative of the International Monetary Fund (IMF), Pakistan Office, Ms Maria Teresa Daban Sanchez has made it clear that the harsh budgetary measures taken by the government of Pakistan in the recent budget are not part of the IMF fresh financial bailout package. While speaking in a meeting here at Sarhad Chamber of Commerce and Industry (SCCI), Ms ... Read More
 
Budget Study Centre   Issue 48 Sep 05, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

IMF deal could be renegotiated

Express Tribune (Sep 05, 2019)
ISLAMABAD: The government on Wednesday did not rule out the possibility of renegotiating the $6 billion International Monetary Fund (IMF) deal amid an admission by the tax authorities, for the first time, that they may collect between Rs4.8 trillion to Rs5.2 trillion in taxes in light of existing economic realities. The questions about renegotiating the IMF deal started surfacing after the IMF and the... Read More
 

Govt rules out any mini-budget in near future

Dawn (Sep 05, 2019)
ISLAMABAD: Amid criticism from both government and opposition members of the National Assembly over price hike and other monetary and fiscal policies, the government on Wednesday ruled out any mini-budget in the near future, saying the improvement in revenue collection would be made through technological and administrative measures. This was the crux of a meeting of the National... Read More
 

Govt borrowed only Rs3.44 trillion to finance budget deficit: ministry

The News (Sep 04, 2019)
ISLAMABAD: The Ministry of Finance on Tuesday explained that total debt and liabilities increased by Rs10.33 trillion in the last fiscal year, however, the government has just borrowed Rs3.44 trillion to finance its budget deficit. In a statement issued here on Tuesday night, the Finance Ministry stated that the government has borrowed only Rs3.44 trillion to finance its budget deficit during FY 2018-19... Read More
 

August inflation accelerates to 10.49pc

Pakistan Today (Sep 03, 2019)
ISLAMABAD: The Consumer Price Index (CPI)-based monthly inflation grew by 10.49pc in August 2019, as compared to the same month of last year. On a month-on-month basis, the CPI national (with base year 2015-16) for the month of August 2019 increased by 1.64pc over July 2019, Member Pakistan Bureau of Statistics (PBS) National Accounts member Dr Bahrawar Jan told the media at a press... Read More
 

Business reforms imperative to boost industrial growth: Dawood

Pakistan Today (Sep 03, 2019)
ISLAMABAD: By introducing business reforms in the country, the government intends to boost its industrial and commercial potential, said Adviser to Prime Minister on Commerce Abdul Razak Dawood, adding that the government remains committed to increasing the volume of exports through tariff rationalisation, improving the inflow of trade-related investment and introducing... Read More
 

Economy in red zone, govt should step down: PML-N

The News (Sep 03, 2019)
ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) on Monday that the country's economy is in red zone and the government should resign it is unable to run the country. While criticising government’s Kashmir policy, PML-N has decided to requisition an emergency session of the National Assembly to discuss the vital issue in the House. Addressing a press conference... Read More
 

Yuan’s fall may increase Pakistan’s trade deficit with China

Express Tribune (Sep 02, 2019)
ISLAMABAD: The recent currency devaluation by China, which has brought the yuan-dollar parity to the lowest level since 2008, as part of its efforts to offset the impact of its tariff war with the United States, doesn’t augur well for Pakistan. The yuan’s sharp devaluation means that, all else equal, Pakistan’s exports to China will become less competitive, while imports from China will become... Read More
 

Sindh’s economy - challenges and solutions

Express Tribune (Sep 02, 2019)
NORTHAMPTON: The field of microeconomic analysis within the broader domain of economics attempts to explain the behaviour of individuals and organisations in a given economy. Taking the same philosophy and projecting it on a country level, regional studies explain the underlying economic and social trends of regions under the wider national fabric. A recent... Read More
 

High interest rate restricts private-sector borrowing

Express Tribune (Sep 01, 2019)
LAHORE: The All Pakistan Business Forum (APBF) has urged the State Bank of Pakistan (SBP) to review its policies and facilitate the private sector because credit offtake fell to Rs607.5 billion in fiscal year 2018-19 against Rs618.2 billion in the previous fiscal year owing to interest rate hike. The key interest rate has been increased from 6.5% to 13.25% in just one year... Read More
 

High interest rate restricts private-sector borrowing

Express Tribune (Sep 01, 2019)
LAHORE: The All Pakistan Business Forum (APBF) has urged the State Bank of Pakistan (SBP) to review its policies and facilitate the private sector because credit offtake fell to Rs607.5 billion in fiscal year 2018-19 against Rs618.2 billion in the previous fiscal year owing to interest rate hike. The key interest rate has been increased from 6.5% to 13.25% in just one year... Read More
 

FATF sets new targets for Pakistan

The Pakistan Today (Aug 31, 2019)
The Financial Action Task Force (FATF) has set new targets for Pakistan in which terror financing, as well as the sale of jewellery and prize bonds, would be monitored. As reported by a private media outlet, the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), Federal Investigation Agency (FIA) and National Counter Terrorism... Read More
 

Economy now capable of absorbing shocks: SBP chief

The Express Tribune (Aug 31, 2019)
KARACHI : Pakistan has achieved the most crucial milestone of economic stability. Improvement in foreign currency reserves, achieved through structural reforms under the International Monetary Fund’s (IMF) loan programme, has helped create a buffer for absorbing internal and external financial shocks, says the central bank chief. “The State Bank’s policy and our outlook ...Read More
 

FBR to witness another month of alarming shortfall in revenue

Pakistan Today (Aug 30, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) is going to witness another month of major shortfall, as the board only managed to collect around Rs241 billion so far in August 2019, against the monthly target of Rs357.3 billion. Keeping in view the track record of revenue collection in the first 29 days of August, the FBR may collect around Rs260 billion by the end of the month, a shortfall of around Rs97... Read More
 

Record budget deficit shows PM’s failure: PPP

The News (Aug 30, 2019)
ISLAMABAD: The Pakistan People’s Party (PPP) Thursday said that the record budget deficit shows the inability of the prime minister and his team to run the country. How this selected government will overcome the budget deficit of Rs3000 billion,” asked Secretary Information PPP Parliamentarians Dr Nafeesa Shah while reacting to the finance report by Ministry of Finance. Dr ... Read More
 

Revised macroeconomic data

The Business Recorder (Aug 29, 2019)
Consolidated Budgetary Operation (CBO) statement for 2018-19 released by the Ministry of Finance is extremely disturbing as macroeconomic data (finalised) is markedly divergent from what was presented in the budget documents for the current fiscal year - data that was critical to enabling the Pakistan economic team led by Dr Hafeez Sheikh, Advisor to the... Read More
 

Provinces help in keeping budget deficit below 9pc of GDP

The News (Aug 29, 2019)
ISLAMABAD: Pakistan’s budget deficit would have definitely crossed 9 percent of Gross Domestic Product (GDP) in the fiscal year 2018-19 if the provinces had failed to generate revenue surplus of Rs138.87 billion. With highest ever budget deficit of Rs3,444 billion or 8.9 percent of GDP under first year rule of PTI, Pakistan’s primary deficit also climbed to 3.6 percent of GDP for... Read More
 

The ballooning deficit

Pakistan Today (Aug 28, 2019)
The 2018-2019 budget deficit was out of control. The figures are almost too wild to be true, but since they are contained in the Finance Ministry’s own Budget Operations Statement, they have to be believed. Not only was the budget deficit for 2018-2018 the highest on record, but in terms of percentage of the GDP, at 8.9 percent the highest in at least 40 years. This has happened even though development spending was... Read More
 

Pakistan's budget deficit widens to 8.9% of GDP in 2018/19

Reuters (Aug 27, 2019)
ISLAMABAD (Reuters) - Pakistan’s budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country. The deficit size compared with a 7.1% estimate Prime Minister Imran Khan’s government gave in June and with 6.6% during the year that ended in June 2018... Read More
 

PTI govt books highest-ever budget deficit of Rs3.45tr

Express Tribune (Aug 27, 2019)
ISLAMABAD: In the first year of Pakistan Tehreek-e-Insaf (PTI) government, public finances deteriorated further with budget deficit rising to a record Rs3.45 trillion or 8.9% of the size of national economy because of its sheer failure to enhance revenues and control expenditures. Official figures released by the Ministry of Finance on Tuesday confirmed that the PTI government exceeded its budget deficit... Read More
 

Textile industry on the edge

Express Tribune (Aug 26, 2019)
ISLAMABAD: Prime Minister Imran Khan’s visit to the White House late last month had been the focal point for all the print, electronic and social media. However, unlike meetings held in tenures of previous governments, this one was not about financial aid, fighter jets, weapons or any other form of financial assistance, rather it brought good news and provided some relief at a time when economic... Read More
 

A wicked trade-off between development and reforms

Express Tribune (Aug 26, 2019)
ISLAMABAD: The first-year of the Pakistan Tehreek-e-Insaf (PTI) government is over, but is the crisis over also? Let’s look at the claims of both critics and admirers of the PTI administration. The critics cite economic downturn, high inflation, high-interest rate, high unemployment, low level of exports, higher debt and now deceleration in large-scale industrial growth as main indicators...Read More
 

Pakistan govt bans creation of new jobs, purchase of vehicles to fight rising budget deficit

India Today (Aug 25, 2019)
Islamabad, Aug 25 (IANS) Pakistan's Imran Khan government has banned the creation of new posts, purchase of all vehicles, rationalised utilities spending, provision of one newspaper and decided to keep other expenditures at the bare minimum under its austerity drive for the current fiscal year, said media reports. According to media reports, the increasing budget deficit is a major concern... Read More
 

If IMF target not met, govt to move mini-budget or cut development budget

The News (Aug 25, 2019)
ISLAMABAD: In the wake of rapidly worsening fiscal position and for fulfilling the IMF condition on primary deficit, the government is left with no other options but to make policy choices either to go for mini budget or slash down development budget. Top official sources said that the policy choices will have to be made in first half of the current fiscal year as the IMF mission was expected to visit Islamabad... Read More
 

Pakistan fast gaining access to markets of developed nations

Express Tribune (Aug 24, 2019)
KARACHI: Pakistan is fast strengthening trade ties and getting access to markets of several developed countries around the globe in an attempt to increase exports, which is a must to do away with the pressure on the rupee, build foreign currency reserves and steer the country out of the financial crisis. “We have got increased market access to China, Europa... Read More

PM for preparing roadmap to revive economy

The News (Aug 24, 2019)
ISLAMABAD: Taking notice of plunging into severe slowdown, Prime Minister Imran Khan has directed his economic team to prepare a roadmap for revival of national economy aligned with IMF conditions to kickstart sluggish economic activities. The independent economists are expressing their apprehensions that Pakistan is moving towards stagflation where the stabilisation programme under tight nose of IMF scrutiny will... Read More

Pakistan gets $440m worth of fresh loans in July

Express Tribune (Aug 23, 2019)
ISLAMABAD: Pakistan received $440 million in fresh loans last month amid a gradual shift in the financing source from China to multilateral creditors due to completion of many China-Pakistan Economic Corridor (CPEC) projects. The borrowing of $440 million in July 2019 included $173.3 million in commercial loans from Dubai Bank and a consortium of... Read More

Different challenges for Pakistan economy

The Nation (Aug 23, 2019)
Pakistan has been facing different challenges regarding its economy. The economic situation of Pakistan is very critical and people are looking towards the solution of these challenges. Pakistan has different opportunities which can help it to solve its economic problem. But without tackling long term challenges and problems decisively, the country will no longer be able to take advantages... Read More
 
Budget Study Centre   Issue 46 August 08, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Govt to return $10bn foreign debt during current fiscal year: Hammad Azhar

The Nation (Aug 08, 2019)
Federal Minister for Economic Affairs Hammad Azhar informed the National Assembly on Thursday that the government would return over $10 billion foreign debt during the current fiscal year۔ Replying to various supplementary questions during question hour, Hammad Azhar said the incumbent government returned US $ 8.39 billion foreign debt... Read More
 

ADB approves &500m loan for budgetary support

Express Tribune (Aug 08, 2019)
ISLAMABAD: The Asian Development Bank (ADB) on Wednesday approved a $500-million loan for budgetary support to Pakistan, restoring policy-based lending after keeping it suspended for over two years due to deterioration in macroeconomic conditions. The ADB board of directors approved the $500 million in budgetary support under the $800-million... Read More
 

‘Exports surge 14.2pc, imports drop 18.3pc in July’

Pakistan Today (Aug 07, 2019)
ISLAMABAD: Adviser to Prime Minister on Commerce Abdul Razak Dawood said on Wednesday that Pakistan’s exports had increased by 14.23pc in July this year, as compared to the same month of last year. In term of dollars, the country’s exports increased from $1.63 billion in July 2018 to $1.87 billion in July 2019, the adviser informed while addressing a press conference at the ... Read More
 

Budget 2019: A step towards a future-fit India

The Fortune India (Aug 07, 2019)
Union Budget 2019 clearly underscores the theme of enablement, ease of living, and ease of doing business. Directed at enabling the world’s largest democracy to be fit for the future, institutional reforms and green technology-led growth are its underlying essence. Finance minister Nirmala Sitharaman has driven home the point that to be a $5-trillion economy in the next five years, proactive actioning of her pithy phrases... Read More
 

US delegation lauds Pakistan’s economic reforms agenda

Pakistan Today (Aug 06, 2019)
ISLAMABAD: A US delegation, led by its Ambassador in Pakistan Alice G Wells, called on Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh at the Finance Division on Tuesday. Hafeez Shaikh briefed the visiting delegation on measures pertaining to economic reforms being undertaken by the government, saying that recent steps would ensure economic... Read More
 

IMF’s $6bn EFF program meant for economic reform, growth in Pakistan: Resident Representative IMF

Business Recorder (Aug 06, 2019)
ISLAMABAD: Resident Representative, International Monitory Fund (IMF), Pakistan Office, Ms Maria Teresa Daban Sanchez on Monday said $6 billion Extended Fund Facility (EFF) program for Pakistan intend to support the economic reform program and sustainable economic growth of the country. The goals of the IMF package in the medium term is debt sustainability... Read More
 

Import of agricultural machinery surges 8.73pc in FY19

Pakistan Today (Aug 05, 2019)
ISLAMABAD: The import of agricultural machinery into the country during the financial year 2018-19 witnessed an increase of 8.73pc, as compared the corresponding period of last year. According to the data released by Pakistan Bureau of Statistics, agriculture machinery worth $135.312 million was imported during the period from July-June 2018-19, as compared the import... Read More
 

Better than Egypt, Pakistan still has bumpy road ahead

Express Tribune (Aug 05, 2019)
LAHORE: Pakistan has a long history of signing the International Monetary Fund (IMF) programmes to address its balance of payments crisis and structural economic imbalances. There is much talk about imitating the IMF recipe practised in Egypt recently to address Pakistan’s lingering balance of payments challenge and other structural adjustment issues. So, there is a need to compare and analyse ... Read More
 

Pakistan to get 13 million euros from European Union

Express Tribune (Aug 04, 2019)
ISLAMABAD: The federal government has decided to initiate a five-year programme 2019-2024 in cooperation with the European Union to ensure rule of law in the country along with good governance, reforms in human rights department and decrease in poverty with a cost of 13 million euros. The draft between Pakistan and European... Read More
 

IMF may ask govt to bring mini budget if FBR shortfall widens

The Nation (Aug 04, 2019)
ISLAMABAD The International Monetary Fund (IMF) may ask Pakistan to bring mini budget if tax collection shortfall widens in next couple of months. The Federal Board of Revenue (FBR) had already faced Rs14 billion shortfall in tax collection during first month (July) of the current fiscal year. The FBR had collected Rs277 billion in July 2019 as against the target of Rs291 billion... Read More
 

Pakistan economy to grow at less than 5pc: ADB

Pakistan Today (Aug 03, 2019)
The Asian Development Bank (ADB) in a recent report has said that Pakistan’s economy is expected to grow at a rate below 4 per cent in the year 2019-20. The ADB’s report titled ‘How South Asia can continue as the world’s fastest-growing region’ said that Pakistan was focused on fighting macroeconomic imbalances and domestic demand, rendering it unable to grow at a more substantial rate... Read More
 

Major discrepancies between FBR and SBP in tax receipts

Pakistan Today (Aug 03, 2019)
Major discrepancies ranging between Rs10-24 billion have been found in the tax receipts data reported by the Federal Board of Revenue (FBR) and the cash deposited in the treasury. The FBR claimed to have collected Rs280.5 billion in revenues in July, whereas media reports have suggested that the finance ministry has said that the treasury stands Rs10 billion less than this figure at Rs270 billion. Meanwhile...Read More
 

Analysis of one of South Asia’s most fluctuant economies

Pakistan Today (Aug 02, 2019)
At the heart of South Asia lies a sleeping economic giant. A country founded on the basis of religious freedom by an outstanding group of men that put their people and their religion before themselves. A country stacked with economic potential, from the coast of Karachi to the peaks of Swat. However, despite being rich in natural resources, and having potentially one of the most strategic... Read More
 

July Inflation reaches 10.34pc, highest in last six years

The Nation (Aug 02, 2019)
ISLAMABAD - Pakistan’s inflation rate has touched double digit figure of 10.34 percent in July 2019, which is highest in last six years, mainly due to the economic policies of the incumbent government including rupee devaluation and increase in energy costs. Inflation rate has recorded at 10.34 percent in July 2019, which was only 5.8 percent in the same month of the previous year, according to... Read More
 

Foreign exchange: SBP reserves jump 2.04% to 7.8b

The Express Tribune (Aug 01, 2019)
KARACHI: The foreign exchange reserves held by the central bank increased 2.04% 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. However, financial assistance from the United... Read More
 

IFC may boost investments in Pakistan to support economy

The News by Mehtab Haidar (Aug 01, 2019)
ISLAMABAD: The World Bank’s private- sector lending arm said on Wednesday it could increase its investments in Pakistan to revive the country’s struggling economy. “The IFC (International Finance Corporation) is looking into the possibility of increasing annual investment for Pakistan to support the country’s economy,” a government statement quoted Hans... Read More
 

US hints at greater economic engagement with Pakistan

The News by Anwar Iqbal (July 31, 2019)
WASHINGTON: The United States and Pakistan can further enhance bilateral trade if strategic ties between the two countries continue to improve, said a White House factsheet released on Tuesday. The factsheet “Working toward Peace and Stability: Building Economic Prosperity” notes that the United States and Pakistan enjoy a strong economic partnership that benefits both countries... Read More
 

FBR expands its web to non-resident Pakistanis

The Express Tribune (July 31, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) has reduced the stay period of Pakistanis for tax collection purposes with effect from 2015, which may result in litigation as independent legal experts argue that substantive changes in law can only be made prospectively. The FBR on Tuesday issued a circular aimed at explaining important amendments to the Income Tax Ordinance Read More
 

The last IMF-programme

The Pakistan Today by Usman Masud (July 30, 2019)
Turn a few pages in the history of the economy of Pakistan and you will see a vicious pattern. The outgoing government hands over an economy that is plagued by all kinds of meltdown– fiscal, financial, external, and real. Faced with such a dire situation, the new government’s most immediate priority becomes rescuing the economy. With debt payments around the corner... Read More
 

Budget 2019-20 resembles historic financial plans

The APP (July 30, 2019)
ISLAMABAD, Jul 30 (APP):The recently passed federal budget for the fiscal year 2019-20 resembles historic annual financial plans, as this year the plan had been prepared keeping in view the prevailing challenging economic situation. The financial crunch has left the country’s economy burdened with increased debts, decelerated growth rate, fiscal and current account deficits and shortfall... Read More
 

US economy slows in second quarter; weak business investment a red flag

The Business Recorder (July 29, 2019)
Washington: U.S. economic growth slowed less than expected in the second quarter as a surge in consumer spending blunted some of the drag from declining exports and a smaller inventory build, which could further allay concerns about the economy’s health. But the fairly upbeat report from the Commerce Department on had some red flags for the 10-year-old economic expansion, the longest...Read More
 

Govt plans to cut down circular debt to Rs225b by Dec

The Nation (July 29, 2019)
ISLAMABAD - The incumbent government has embarked on an ambitious programme to cut down circular debt to Rs 225 billion by December. The sources told APP here that the circular debt escalated to Rs 450 billion in just one year due to delay in tariff determination, absence of proper plan to stop power pilferage and power supply to high losses feeders. However, the government since its inception... Read More
 

FBR introduces strict law against smuggling

The Express Tribune (July 28, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) has issued directives for the implementation of law to curb smuggling and imposition of heavy fine and imprisonment of up to seven years on traders involved in misuse of Afghan Transit Trade. A senior officer of FBR, while speaking to The Express Tribune said that a new clause 63(i) has been included in section 156 part B of Customs Act 1969, therefore,... Read More
 

Second CPEC phase to boost industrial cooperation

The Express Tribune (July 28, 2019)
ISLAMABAD: The second phase of China-Pakistan Economic Corridor (CPEC) is very important for Pakistan as it will give a boost to industrial cooperation and give birth to Special Economic Zones (SEZs), remarked Sichuan University Deputy Dean International Studies Professor Dr Song Zhihui. Speaking at the ICCI, Song stressed that the setting up of SEZs would in turn create new opportunities ... Read More
 

PM chose IMF deal despite alternate solution: Asad Umar

The Pakistan Today (July 27, 2019)
Asad Umar has revealed that Prime Minister Imran Khan was provided with an alternative solution to deal with the country’s financial crunch instead of opting for the International Monetary Fund (IMF) bailout package, a private media outlet reported on Saturday. “In March, I went to the prime minister and showed him the numbers. I told him that going to the... Read More
 
  

Pakistan lacks system for recording, reporting debt

The Express Tribune (July 27, 2019)
ISLAMABAD: Pakistan lacks a consolidated system for recording and reporting its debt and there is also no mechanism to regulate public assets that results in discrepancies and non-reconciliation of hundreds of billions of rupees worth of funds. The final draft report of the Public Expenditure and Financial Accountability Assessment (PEFA) 2019 of the World... Read More
 

IMF Board Members appreciate Pakistan’s resolve to stabilize, revive economy

The News (July 26, 2019)
WASHINGTON: Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh and Governor State Bank of Pakistan, Reza Baqir had an interactive session with the Executive Directors of the IMF from G-7 countries (i.e. United States, United Kingdom, France, Canada, Italy, Japan and Germany), China, Russia and Switzerland, in their recent visit to.... Read More
 

Pakistan’s budget has lost credibility: World Bank

The Express Tribune (July 26, 2019)
ISLAMABAD: Pakistan’s budget has further lost its credibility and the public finance management system has also deteriorated, according to a draft report of the World Bank that has downgraded the country’s ranking on almost all 31 fiscal management-related indicators. The Washington-based lender shared the final draft of the Public Expenditure and Financial Accountability... Read More
 
 
Budget Study Centre   Issue 45 July 25, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Public debt rises by $10.841b in FY 18-19

The Pakistan Today (July 25, 2019)
A whopping $10.814 billion has been added to the public debt in the past year by the incumbent Pakistan Tehreek i Insaaf (PTI) government. The massive borrowing seems to have ignored the necessary precaution that the government should have taken in securing liabilities, and severely undermines the government’s self-proclaimed desire to cut the deficit. The heavy borrowing in the past year... Read More
 

Pakistan economic slowdown to continue

The Daily Times (July 25, 2019)
LAHORE: Pakistan is seeing its economy slow as domestic policy is tightened against a background of a slowing global economy, finds ACCA’s (the Association of Chartered Certified Accountants) and IMA’s (Institute of Management Accountants) Global Economic Conditions Survey (GECS). The global poll of 1162 accountants shows that confidence remains above... Read More
 

Budget deficit of last fiscal may touch Rs 3,300 bn

The News (July 24, 2019)
ISLAMABAD: The initial estimates for fiscal year 2018-19 under first year rule of the PTI suggest that Pakistan’s budget deficit is going to witness new heights of touching Rs3,300 billion, one of the highest ever absolute figure in whole history of Pakistan. This budget deficit exceeding Rs3,300 billion or 8.5 percent of Gross Domestic Product (GDP) will have far-reaching negative impact for the fiscal... Read More
 

US may release CSF funding for Pakistan

The News (July 24, 2019)
ISLAMABAD: Ruling out possibility of any rescheduling of foreign debt under Paris Club arrangement with the blessings of USA, Pakistan might see positive movement on release of pending funds of $9 billion from USA in shape of Coalition Support Fund (CSF). But this could only happen if truce in Afghanistan struck successfully as Washington is expecting some ‘positive outcome’ by... Read More
 

Pakistan borrows record $16b in just one year

The Express Tribune (July 23, 2019)
ISLAMABAD: For the first time in its history, Pakistan borrowed a whopping $16 billion in foreign loans in just one year aimed at avoiding default on international debt obligations and financing its imports. The $16 billion worth of foreign loans have been obtained during fiscal year 2018-19, which included 11 months of the Pakistan Tehreek-e-Insaf (PTI) government, showed official documents... Read More
 

Punjab government to abolish ‘unnecessary taxes’

The Express Tribune (July 23, 2019)
LAHORE: The Punjab government has assured the business community that it will abolish almost 50 unnecessary taxes besides clubbing the collection of property, professional and labour-related taxes. The assurance was given by Punjab Finance Minister Makhdoom Hashim Jawan Bakht in a meeting with Lahore Chamber of Commerce and Industry (LCCI) President... Read More
 

Pakistan needs to mobilize tax revenue, cut debt: IMF acting director after meeting PM

The Dawn (July 22, 2019)
Pakistan needs to mobilise domestic tax revenue to ensure funds for social and development programs, while reducing debt, the acting director of the International Monetary Fund said on Sunday after a meeting with Prime Minister Imran Khan in Washington DC.  The two officials discussed recent economic developments and the implementation of Pakistan's IMF-supported economic... Read More
 

The inflation challenge

The Business Recorder (July 22, 2019)
The Monetary Policy Committee of the State Bank of Pakistan (SBP) decided to raise in the discount rate by 100 basis points while acknowledging that the inflation projection may be revised upward to 12 percent. The budget for 2019-20 projects inflation from between 11 to 13 percent, an estimate endorsed by the International Monetary Fund (IMF) staff report released after the Board of Directors approved the 6 billion dollar Extended... Read More
 

No political stability without economic stability

The Daily Times (July 21, 2019)
This is what International Monetary Fund (IMF) Resident Representative to Pakistan Teresa Daban Sanchez has delivered to Pakistan along a set of damning conditions attached to the bailout package. Of all conditions, the condition of establishing a stable political environment in the country is the most pressing, and a doable thing by all the stakeholders. At a symposium in Islamabad... Read More
 

Businessmen worried over missing export target for 2018-19

The Nation (July 21, 2019)
LAHORE     -    The Pakistan Industrial and Traders Associations Front (PIAF) former chairman Irfan Iqbal Sheikh has expressed his serious concern for not achieving export target set for the fiscal year 2018-19, which was missed by a huge margin of over $5 billion, as the current export portfolio is marred by a lack of diversification. He observed that exports have dropped by about one... Read More
 

Govt to enhance tax net, for documenting country’s economy: Shabbar Zaidi

Business Recorder (July 20, 2019)
ISLAMABAD: Chairman, Federal Board of Revenue (FBR), Shabbar Zaidi Friday said priority of the government to enhance the tax net and expend tax base to documenting the country’s economy. Taxation is the only way to forward for equitable distribution of wealth, as “we cannot have stabilized and equitable society unless we have a fare taxation system” he said this during a Policy ... Read More
 

How to stabilize Pakistan’s economy?

The Modern Diplomacy by Amjed Jaaved (July 20, 2019)
Pakistan approached International Monetary Fund for 13th time since 1988 to get a bail-out. This programme is touted as a recipe to `reduce Pakistan’s public debt’ and `stabilize the economy’. The suggested panacea is `market-determined exchange-rate’ coupled with tax-evasion. But a free-floating exchange-rate is no magic wand or panacea for economic stability ... Read More
 

FBR sets tax collection target at Rs300b for July

Express Tribune (July 19, 2019)
ISLAMABAD: The Federal Board of Revenue (FBR) has set the tax collection target at Rs300 billion for July 2019. However, it is likely to report revenue shortfall in the very first month of current fiscal year 2019-20. According to sources within the FBR, the tax collection in the first 17 days of July stood at Rs170 billion while the remaining Rs130 billion has to be collected in 14 days... Read More
 

Inflation almost doubled in Pakistan :ADB

The Nation (July 19, 2019)
ISLAMABAD     -          The Asian Development Bank (ADB) has said that Pakistan’s GDP growth had deteriorated to 3.3 percent in fiscal year 2018-2019, which was lowest rate in last 8 years. According to Asian Development Bank (ADB) report released. “Preliminary official estimates for Pakistan show growth in FY2019 (ended 30 June 2019) deteriorating to 3.3percent, the lowest rate in 8 years, pulled ... Read More
 

The IMF takeover of Pakistan

The Diplomat (July 18, 2019)
On July 3, the International Monetary Fund approved a $6 billion bailout package to help “return sustainable growth” to Pakistan’s economy. Throughout the deal spanning 39 months, the IMF will review Pakistan’s progress on a quarterly basis. As part of the agreement, $1 billion has been released to Pakistan. This is the 13th IMF bailout for Pakistan, with the Fund looking toward... Read More
 

Higher rates boost NSS receipts volume in FY 2018-19: SBP

The Nation (July 17, 2019)
Owing to higher rates offered on different instruments, the net receipts of National Saving Schemes (NSS) witnessed considerable growth during the fiscal year 2018-19 compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported. “The net receipts of National Saving Schemes (NSS) surged to Rs225.3 billion, compared to only Rs 48.7 billion recorded in the... Read More
 

Budget petard

Express Tribune (July 17, 2019)
The State Bank of Pakistan has predicted even slower economic growth in the fiscal year 2019-20, putting a damper on the ruling party’s claims of improvement coming soon. The fact that the announcement comes so soon after the federal budget, where the Planning Division set a 4 per cent growth target, is doubly worrying. Incidentally, the SBP, opposed to past practice, did not give a numeric  ... Read More
 

Foreign direct investment halved to $1.73b in FY19

Express Tribune (July 16, 2019)
KARACHI: The Pakistan Tehreek-e-Insaf (PTI) government failed to win confidence of foreign investors in the domestic economy as foreign direct investment (FDI) halved to $1.73 billion in the fiscal year ended June 30, 2019. FDI stood at $3.47 billion in the preceding fiscal year 2017-18, the State Bank of Pakistan (SBP) reported on Monday. “Uncertainty regarding the (rupee-dollar) ... Read More
 

Budget 2019-20, CPEC and growth trajectory

The Nation (July 16, 2019)
The incumbent government presented its first formal budget of 2019-20 in June. The total budget outlay is Rs- 8,238.1 billion with 38.9 % higher than the size of previous budget. The target for expenditures is set at Rs 8,238.1 billion and Rs 3,462.1 billion for net revenues. For Public Sector Development Program (PSDP) the budget allocates Rs 1,613 billion out of which provinces share is Rs 912 billion ... Read More
 

SBP releases third Quarterly Report on State of Economy for FY 19

The News (July 15, 2019)
KARACHI: While Pakistan’s economy moved along the stabilization phase led by demand management policies, vulnerabilities in the external and fiscal sectors persisted during Jul-Mar FY19, according to the State Bank of Pakistan’s Third Quarterly Report on the State of Pakistan’s Economy released today. This implies that the current stabilization agenda needs to be reinforced with deep ... Read More
 

IMF package-bailout for govt or for economy?

The Express Tribune (July 15, 2019)
ISLAMABAD: Earlier this month, the International Monetary Fund (IMF) announced the much-awaited $6-billion bailout package for Pakistan, which would be received over the next three years. The transcript of the conference call on the release of IMF staff report mentions that this Extended Fund Facility has two main pillars. In the words of IMF Mission Chief for Pakistan, Middle East and ... Read More
 

Budget 2019-20 resembles historic financial plans

Urdu Point (July 14, 2019)
ISLAMABAD, (UrduPoint / Pakistan Point News - APP - 14th Jul, 2019 ) :The recently passed Federal budget for the fiscal year 2019-20 resembles historic annual financial plans, as this year the plan had been prepared keeping in view the prevailing vexed economic situation, burdened with increased debts, slackened growth rate, fiscal and current account deficits and shortfall in revenues, hence leaving ... Read More
 

Federal Budget 2018-19 in retrospect

Daily Times by Muhammad Zahid Rifat (July 14, 2019)
PML(N)’s federal government had stepped down on May 31, 2018 on completion of its stipulated 5 years constitutional tenure. But prior to doing that, it had created a record of presenting six budgets in the five years period. It had presented the federal budget for financial year 2018-19 as early as on April 27, 2018 leaving no room for the caretakers to present budgetary proposals for the ... Read More
 

Traders shut down markets across Pakistan

Pakistan Today (July 13, 2019)
LAHORE/KARACHI/ISLAMABAD : A countrywide shutter-down strike was observed by traders in all part of the country in a protest against the “anti-business measures” taken by the federal government in the budget for the current financial year. The traders demanded that the “unfair taxes” be withdrawn, especially the value-added tax on traders. According to media reports, the strike was partially successful in Karachi, while ... Read More
 

Trade deficit shrinks 15.3% to $31.8b in FY19

Express Tribune (July 13, 2019) 
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has managed to narrow down the trade deficit by 15.3% to $31.8 billion on the back of import compression but it failed to enhance exports, which fell even below the level left behind by its arch-rival – the Pakistan Muslim League-Nawaz (PML-N). Trade figures released by the Pakistan Bureau of ... Read More
 
  

Economy will improve within a year, says SBP governor

The News (July 12, 2019
ISLAMABAD: Conceding twin deficits as biggest challenge confronting Pakistan’s economy, the State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Thursday said the economic condition of the country will improve within a year. He defended exchange rate policy under the IMF conditions arguing that it should be reflective of demand-supply gap of total dollar inflows ... Read More
 

Rising Pakistan

The Express Tribune by Kwak Sung-Kyu (July 12, 2019)
Pakistan is confronted with challenges of many types, but with a new government in the saddle now, there are renewed hopes for the country to overcome all its challenges. In July 2018, the Pakistan Tehreek-e-Insaf, a relatively smaller political party, won the general election. Led by former cricket hero Imran Khan, the party has started implementing his vision for a ‘Naya Pakistan’ .... Read More
 
 
Budget Study Centre   Issue 43 June 27, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

GB Assembly approves Rs 62.95b budget

The Nation (June 27, 2019)
GILGIT    -   Gilgit Baltistan (GB) Assembly here on Wednesday unanimously approved over Rs62.95 billion budget for financial year 2019-20 for which Rs 17 billion were allocated for development projects and Rs 37 billion for non-development budget in the province. The members of Treasury and Opposition benches made detailed discussion on the budget before... Read More
 

NA passes 92 demands for grant for FY 2019-20

The Nation (June 27, 2019)
ISLAMABAD   -  The PTI government in Wednesday’s National Assembly sitting approved 92 demands for grants relating to different federal ministries, division and departments for the next financial year, disapproving all the cut-motions moved by opposition with ‘voice of vote’. The house, in a daylong session, saw maximum participation of treasury lawmakers ensuring to reject all the cut... Read More
 

KP Assembly passes Rs.900 billion budget for year 2019-20

The News (June 26, 2019)
PESHAWAR: The Provincial Assembly with Speaker Mushtaq Ahmad Ghani in the chair Wednesday passed Rs.900 billion budget for the year 2019-20 amid uproar by the opposition members protesting the bulldozing of the cut motions in their absence by the chair. The assembly approved 61 demands for grants in a unilateral proceeding of the house as the opposition members... Read More
 

Budget 19-20: Opposition members move cut motions on finance bill proposals

The Dawn (June 26, 2019)
As the National Assembly session held to debate the finance bill resumed on Wednesday, members of the opposition began moving cut motions seeking changes to budget proposals, which will be voted on by lawmakers in the House today. Prime Minister Imran Khan is in attendance today, while opposition ranks appear thin as several PPP, PML-N and other leaders are gathered at a hotel in... Read More
 

NA budget debate: Govt under fire over failed economic policies

The News (June 25, 2019)
ISLAMABAD: The female parliamentarians from the opposition parties while taking part in budget debate on Monday unleashed strong criticism on the government for failure of its economic policies and also called into question credibility of ruling party and its leadership. Former Finance Minister of the last PPP tenure Hina Rabbani Khar, PML-N government’s Information Minister... Read More
 

Senate approves 65 recommendations to NA about budget

The News (June 25, 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 ISLAMABAD: The Senate on Monday unanimously approved 65 recommendations to the National... Read More
 

CPDI lauds raise in KP’s health and education budgets

The Business Recorder (June 24, 2019)
PESHAWAR: Centre for Peace and Development Initiatives (CPDI) has welcomed Khyber Pakhtunkhwa (KP) budget 2019-20 for increasing development allocations of education, health, social protection, energy and environment. However, declining percentage share of these sectors in overall development budget is a cause of concern. According to a press statement issued here on Sunday, the KP ... Read More
 

Qatar also offers US $3 billion to Pakistan

The Express Tribune (June 24, 2019)
ISLAMABAD: Doha on Monday announced new investments worth a total of US $3 billion in the form of deposits and direct investments to Islamabad through a statement issued by the Qatari Foreign Ministry “The Qatari support comes after Emir of Qatar Sheikh Tamim bin Hamad Al Thani’s [two-day] visit to Pakistan to underscore the deep relations between the two brotherly countries and ... Read More
 

Health of the budget

The News (June 23, 2019)
In its recently announced annual budget, for the fiscal year 2019-20, the Punjab government allocated Rs279 billion for health sector. While the government claimed that the allocation budget was up by 20 percent from the current fiscal year (which ends June 30), the fact is that the caretaker government had allocated Rs284 bn for health. To put it in other words, the Pakistan Tehreek-e-Insaf led provincial... Read More
 

CPDI hails KP govt for increasing development allocations

The Nation (June 23, 2019)
LAKKI MARWAT: The Center for Peace and Development Initiatives hails Khyber Pakhtunkhwa Government  for increasing development allocations of Education, Health, Social Protection, Energy and Environment sectors in the recently presented annual budget for fiscal year 2019-20, claimed Haji Inayatullah Khan District Program Manager of Community... Read More
 

Fiery speeches in NA over budget

The News (June 22, 2019)
ISLAMABAD: Members of the opposition on Friday delivered fiery speeches about the federal budget and PPP leader Syed Khursheed Shah reminded the PTI government its every single promise. Khursheed Shah came down harshly on the PTI government for not fulfilling any promise with the people and its leadership for taking U-turns. “Imran Khan had stated that he will not take IMF... Read More
 

Senate opposition rejects budget

The News (June 22, 2019)
ISLAMABAD: Joint opposition in the Senate on Friday rejected the budget, fearing if approved by the Parliament, it would add to crime and poverty, as it had been thrashed out not by the government but by the International Monetary Fund. On the other hand, a treasury legislator insisted that there would be inquiry into the spending of Rs24000 billion in previous ... Read More
 

NA continues discussion on budget 2019-20

The Radio Pakistan (June 21, 2019)
The National Assembly continued discussion on the budget for next fiscal year on Friday. Sahibzada Sibghatullah described the budget as investment friendly. He said the country has been put on the right track and it will move forward on the path of progress and development. Khawaja Asif said the withdrawal of zero rated facility for export oriented industry will not only cut job opportunities... Read More
 

Asad finds fault with budget, discloses details of IMF talks

The Dawn (June 21, 2019)
ISLAMABAD: Opposing a decision of the government of his own Pakistan Tehreek-i-Insaf to increase taxes on items of daily use, former finance minister Asad Umar on Thursday called for an investigation into a constant increase in sugar prices. Taking part in the debate on the budget in the National Assembly soon after the speech of a subdued Asif Zardari ... Read More
 

PM-N left budget deficit of Rs 1300bn in Punjab: Hammad

The Pakistan Today (June 20, 2019)
ISLAMABAD: Minister of State for Revenue Hammad Azhar on Thursday said that the Pakistan Muslim League-Nawaz (PML-N) PML-N left a budget deficit of Rs1300 billion in Punjab during its tenure. Responding to the speech of MNA Dr Aisha Ghaus Pasha, who served as Finance Minister Punjab during the tenure of PML-N,  the minister said those claiming to serve the masses in past left a budget deficit of Rs1300 billion in last fiscal year ... Read More
 

Budget 2019: Will GST be removed on health insurance premium in the upcoming budget

The Financial Express (June 20, 2019)
Budget 2019 India: Union Budget 2019 India may give a fresh look at the health insurance industry paving way for lower cost in terms of premium paid towards medical insurance and giving incentives in terms of higher deductions from total income in order to boost the sector. The tax benefit under section 80D of the Income Tax Act, 1961, could be revised upwards. Currently, the maximum ... Read More
 

Environment protection, courts and prison neglected in Punjab dev budget: CPDI

The Business World (June 19, 2019)
Jhang: Punjab government has not given due share to environment protection, police, law courts and prison administration in its development budget 2019-20. Centre for Peace and Development Initiatives (CPDI) shared while reacting to, otherwise relatively balanced, budget. Climate change and terrorism are the two major issues challenging country’s economic growth in different ways ... Read More
 

Pakistan budgets for luxuries and arms, neglects development

The Asia Times (June 19, 2019)
It was quite shocking recently to see irony dying a thousand deaths as I read the sentence at the very top of recent tender notices issued by the Capital Development Authority (CDA) in Islamabad. It invited contractors to submit proposals for the construction of “New Cages for Parrots at the Zoo of Aiwan-Sadr,” the President House, which would cost 1.94 million Pakistani rupees (US$12,000), ... Read More
 

KP unveils Rs 900bn tax free surplus budget

The Pakistan Today (June 18, 2019)
PESHAWAR: Khyber Pakhtunkhwa (KP) Finance Minister Taimur Khan Jhagra on Tuesday presented the provincial budget 2019-20, with Rs900 billion tax-free surplus budget. The provincial finance minister presented the annual budget in the KP Assembly amid uproar by the opposition benches that were protesting the non-issuance of a production order for former president... Read More
 

Ruckus mars NA budget session yet again

The Pakistan Today (June 18, 2019)
ISLAMABAD: A day after Prime Minister Imran Khan directed his ministers to respond in kind to the opposition, the treasury benches created ruckus in the National Assembly (NA), resulting in Opposition Leader Shehbaz Sharif’s third and another failed attempt to complete his speech on the Federal Budget 2019-20. Sharif, also the president of the Pakistan Muslim League-Nawaz... Read More
 

Budget-Not all is doom and gloom

The Pakistan Today (June 17, 2019)
Prime Minister Imran Khan’s PTI led government has announced a tough budget to arrest the alarming build up in public debt over the last decade. Dr Hafiz Shaikh in his press conference at the launch of the Economic Survey FY19 lamented that the size of the public debt has reached unsustainable levels. Public debt increased from Rs 7.7 trillion in FY2009 to over Rs 28.6 trillion in FY2019, meaning that ... Read More
 

CPDI react to fed budget 2019-20 with concern

The Frontier Post (June 17, 2019)
PESHAWAR: 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 RS. 949,896 million... Read More
 

Finance adviser denies budget is IMF dictated

The Express Tribune (June 16, 2019)
ISLAMABAD: Pakistan’s grim economic situation demanded sacrifices and it was rubbish to say that it was an International Monetary Fund (IMF) dictated budget, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh said on Saturday. The finance adviser also said that it was irritating that people were saying that Rs5.550 trillion tax collection target of the Federal Board of Revenue was ... Read More
 

Missed opportunities: on economic survey and budget

The Pakistan Today by Omer Javed (June 16, 2019)
Sadly, there is not much difference in the quality of economic survey for 2018/19, from that of the past. Indeed, an opportunity was missed by the PTI government to make an in-depth survey of the economy to learn the issues facing it in a much-needed greater depth and breadth. This was important to plan for improving the economy and taking it towards the ‘new Pakistan’. Extensive teams of economic... Read More
 

Economic experts see silver lining in budget

The Express Tribune (June 15, 2019) 
While several measures taken in the federal budget 2019-20 are raising fears in nearly all sectors of economy and various segments of society, it may well pay good dividends in the longer run through measures taken for enhanced fiscal discipline and meaningful economic management. It was however essential to develop a national consensus through effective communication strategy to see off the... Read More
 
  

Govt gives south Punjab a major share in budget

The Pakistan Today (June 15, 2019)
LAHORE: Provincial Finance Minister Makhdoom Hashim Jawan Bakhat on Saturday said that equal development across Punjab, social protection and human resource development were the pivot of the provincial budget 2019-20. He was addressing a  post-budget press conference and was accompanied by Punjab Finance Secretary Abdullah Khan... Read More
 

Sindh presents Rs 1.2tr budget amid opposition’s protest

The Pakistan Today (June 14, 2019)
KARACHI: Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance minister, on Friday presented an Rs1,217 billion budget with zero deficit for the next financial year 2019-20 amid strong protest by the opposition members. Moreover, the Annual Development Programme (ADP) for the next financial year is Rs283.5 billion which... Read More
 

The cherished dream of Budget 2020

The Pakistan Today by Omer Zaheer Meer (June 14, 2019)
“I have a dream”. These were the famous words which led to a drastic change in the USA, uttered at a key junction of history. With the budget pending approval, I too have a dream to share with the readers. The dream starts with the federal budget of the Islamic Republic of Pakistan having just been approved. There are widespread celebrations across the country... Read More
 
 
Budget Study Centre   Issue 44 July 11, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PM seeks businessmen’s support to revive economy

The Pakistan Today (July 11, 2019)
KARACHI: Prime Minister Imran Khan on Wednesday assured the business community that the Pakistan Tehreek-e-Insaf (PTI) government was committed to the ease of doing business in the country and urged them to help achieve its economic targets by becoming a part of the tax net. The prime minister held a series of meetings with different delegations of Karachi-based business... Read More
 

Budget measures slow down realty sector

The Express Tribune (July 11, 2019)
LAHORE: The federal budget for the fiscal year 2019-20 has dragged the realty sector of Pakistan into a depressing mode, at least for now. Markets are eagerly anticipating the revised rates of land, to be announced by the Federal Board of Revenue (FBR), which will determine the future of this sector following response from investors. In the budget, the government abolished 3% tax, which... Read More
 

Pakistan receives &991m as first tranche of IMF loan

The Pakistan Today (July 10, 2019)
KARACHI: Pakistan has received the first tranche of $991.4 million of the $6 billion from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF), the chief spokesperson for the State Bank of Pakistan (SBP) confirmed on Wednesday. On July 3, the IMF executive board approved a $6 billion bailout package for Pakistan and immediately released $1 billion to ease a sustained... Read More
 

FBR falls Rs 556bn short of revenue target

The Pakistan Today (July 10, 2019)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government, in its first year in power, has failed miserably in achieving the revenue target of Rs4.39 trillion. The Federal Board of Revenue collected Rs3.84 trillion in the fiscal year 2018-19, depicting a shortfall of Rs556 billion. As per the sources, the tax department actually collected Rs3.8 trillion in taxes, while it included Rs42 billion, which was collected through... Read More
 

Pakistan facing ‘significant economic challenges’ economy at critical juncture, says IMF

The Financial Express (July 09, 2019)
The global lender last week formally approved the USD 6 billion loan to Pakistan, which is facing "significant" economic challenges on the back of "large" fiscal and financial needs and "weak and unbalanced" growth. Pakistan is facing “significant economic challenges” due to a weak and unbalanced growth and that its economy is at a critical juncture where it needs an ambitious and bold set of reforms... Read More
 

IMF says Pakistan bailout sets ambitious fiscal targets

The Business Recorder (July 09, 2019)
ISLAMABAD: The $6 billion loan package for Pakistan approved by the International Monetary Fund last week will require “very ambitious” fiscal measures and sustained commitment for the bailout to succeed, IMF officials said on Monday. The three-year agreement approved by the IMF board last week, Pakistan’s 13th bailout since the late 1980s, has seen a sharp drop in the value of the rupee... Read More
 

Budget shows govt’s agenda to make India a product-driven country

Yourstory.com (July 08, 2019)
The Union Budget 2019, presented by Finance Minister Nirmala Sitharaman, is one of the most critical ones in the recent past for ‘Start-up India, Standup India’, a dream initiative of Prime Minister Narendra Modi. This Budget clearly portrays the importance laid by the Modi government to turn India into a product-driven country. The Budget held a wide variety of initiatives to... Read More
 

Depressing economy of Pakistan and its revival

The Nation by Muhammad Ishan Khan (July 08, 2019)
Pakistan is a developing country and faces a host of socio-economic problems including political instability as a major burning current issue that aggregates the problems further. Currently, one of the big social problems for Pakistan is poverty. 70% of the population of Pakistan still lives in villages and agriculture encompassing livestock sector, is a major source of economic development... Read More
 

Mixed reactions to new Indian finance minister’s budget

The National (July 07, 2019)
Most business leaders and economists welcomed what is seen as a “pragmatic” annual budget from India’s re-elected government led by Narendra Modi. But it fell short of the “big bang” announcements some were hoping for. The budget was presented by India’s new Finance Minister Nirmala Sitharaman on Friday against the backdrop of a slowing economy and high unemployment. The government... Read More
 

Workers, activists denounce federal budget, demand better wages, pensions

The Dawn (July 07, 2019)
KARACHI: People from all walks of life, including labourers, home-based workers and rights activists, observed a ‘black day’ by holding a rally from Regal Chowk to the Karachi Press Club on Saturday against the terrible price hike. Chanting slogans, they also voiced their agony about not getting water, electricity and gas despite paying the bills through their noses. The rally, organised ... Read More
 

Institutions must be strengthened to achieve budget targets

The News (July 06, 2019)
LAHORE: Budget targets are no doubt ambitious, but to expect these targets can be achieved through weak institutions is overly ambitious. Strong institutions are vital in implementing the policies of the state in letter and spirit. Pakistan has never embarked on a sustainable growth path despite having a liberalised trade regime in the region mainly due to weak institutions. To achieve its revenue targets ... Read More
 

Budget aims to promote industrialization, FBR chief tells traders

The Pakistan Today (July 06, 2019)
LAHORE: Federal Board of Revenue (FBR) Chairman Shabbar Zaidi, while addressing a meeting at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, said that the main theme of the Federal Budget 2019-20 is the development of industrial sector and creation of employment opportunities. “Keeping in view the problems ... Read More
 

India budget 2019: The key announcements and what they mean

BBC News (July 05, 2019)
India's first full-time female finance minister, Nirmala Sitharaman, has presented her maiden annual budget. The BBC's Aakriti Thapar explains what the major announcements were and what they mean for India. This is the first budget since Prime Minister Narendra Modi's landslide victory in the general election this year. There were big expectations because it came against the backdrop of ... Read More
 

Pakistan in Economic Danger

The Daily Times by Shahabuddin (July 05, 2019)
The PM of Pakistan has created the Economic Council to find solutions to the tremendous debt Pakistan has accumulated over its life, especially during the last ten years of democratic governments. The total debt as of 2018 was Rs. 33 trillion ($201 billion at the current exchange rate) of which Rs. 3.4 trillion was borrowed in just the last six months. The total debt is 86.4% of the GDP and 36% of the ... Read More
 

IMF approves $6bn Pakistan bailout package after austerity budget

The Financial Times (July 04, 2019)
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. The IMF has approved a $6bn bailout package for Pakistan ... Read More
 

Workers criticize federal budget, to observe ‘black day’ on Saturday

The Dawn (July 04, 2019)
KARACHI: Rights activists representing labourers, peasants and fisherfolk called a press conference at the Karachi Press Club on Wednesday to reject the recent budget and announce a ‘black day’ to be observed by them on July 6 (Saturday). Calling it an anti-people budget prepared by the government with an understanding with the International Monetary Fund (IMF), the ... Read More
 

Pakistan and IMF battling economic plight together?

The Global Village Space by Bilal Abdul Ghani (July 03, 2019)
After taking control of the government, PTI is trying its best to control the economic conditions of the country. Starting from the amnesty drive to the IMF Program, the incumbency has taken every bitter step to revive the economy that is lying on the ventilator taking raspy breaths. How much of these steps are true and in right direction? Only the future can tell. Here is a ... Read More
 

Inflation surges to 5-year high target missed

The Express Tribune (July 03, 2019)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has missed its annual target of inflation that surged to a five-year high at 7.3% in the last fiscal year due to upward revision in electricity and gas prices and 32% depreciation of the rupee in one year. Against the annual target of 6%, the average inflation in fiscal year 2018-19 surged to 7.34%, reported the Pakistan Bureau of Statistics , ... Read More
 

Tax rate for token payment, registration of cars not changed in budget: FBR

The Business Recorder (July 02, 2019)
ISLAMABAD: Federal Board of Revenue (FBR) Tuesday strongly rebutted the perception that rate of tax had been changed in the Financial Budget-2019 for the token payment and registration of cars. After verification it was noticed that this misperception was due to a typographical mistake which was rectified in the Finance Act-2019, a press release by FBR said. It added the rate of tax for the ... Read More
 

IMF executive board meets Wednesday to decide on Pakistan bailout

The Pakistan Today (July 02, 2019)
ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) in its Washington meeting on Wednesday (today) will decide about approval of the bailout package to Pakistan. Pakistan’s government and the IMF had already signed staff agreement on May 12. The Executive Board of the IMF will give its final nod to the agreement under which Pakistan will receive six billion dollars... Read More
 

Human development gets little attention in budget

The Express Tribune (July 01, 2019)
ISLAMABAD: In his recent address to the Karachi Council on Foreign Relations, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh noted that “historically, Pakistan has never been able to perform well economically”. He then went on to explain the three common factors, which enabled 15 to 20 developing countries to gain prosperity since the Second World War. These included focusing on their people ... Read More
 

IMF programme may do little to reduce trade deficit

The Express Tribune (July 01, 2019)
ISLAMABAD: Following a staff-level agreement and subject to approval of its board of directors, the International Monetary Fund (IMF) will provide $6 billion in credit to Pakistan under a 39-month Extended Fund Facility (EFF). Opinion is divided over whether Pakistan should have gone back to the fund and whether the agreement with the multilateral donor will compound or ... Read More
 

No relief for poor in budget

The News (June 30, 2019)
CHARSADDA: Qaumi Watan Party (QWP) Chairman Aftab Ahmad Khan Sherpao on Saturday declared the budget controversial, saying the government didn't give any relief to the people. He was addressing the participants of a rally at the Farooq Azam Chowk here. The rally was held to protest the spiraling price-hike and ill-conceived policies of the government. A large number of QWP workers, ... Read More
 

Pakistan to share details of federal budget with IMF board

The Gulf Today (June 30, 2019)
Pakistan will share the details of the federal budget with the International Monetary Fund (IMF) board, which is scheduled to meet on July 3, after its passage in the National Assembly. The final budget measures along with a report on compliance with all prior actions will be key elements in the board’s decision to grant Pakistan’s request for accession to a $6 billion bailout facility. The final, approved... Read More
 

Punjab Assembly passes budget amid rumpus by both opposition, treasury benches

The Dawn (June 29, 2019) 
LAHORE: The opposition on Friday made up for what it lacked on Tuesday (when the provincial budget was passed): resisting the passage of supplementary budget, with an hour-long noisy protest – as long as the speaker read all 40 demands for grants under the bill. As soon as the speaker started reading the bill, grant by grant, the House lost all sense of decorum. The entire opposition ... Read More
 
  

PTI survives budget scare

The Pakistan Today (June 29, 2019)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government was able to get its finance bill passed in the National Assembly on Thursday after a majority voted in its favour despite attempts by the joint opposition to thwart the bill. The total outlay of the budget was Rs7.022 trillion, focusing on fiscal consolidation, revenue mobilisation, austerity ... Read More
 

Budget 2019-20 will prove disastrous for middle-income groups:moot

The Pakistan Today (June 28, 2019)
ISLAMABAD: The Federal Budget 2019-2020, as well as the government’s economic policies, will have disastrous consequences for Pakistan’s middle-income groups, who are expected to face a 40pc compression in disposable income. This was the key takeaway at the Jinnah Institute’s policy roundtable, titled, ‘Austerity Budget: Assessing the Impact on Development and Pro-poor Growth’.... Read More
 

Economists weigh on Pakistan’s economic crisis, new budget

The News (June 28, 2019)
Karachi: The Institute of Historical and Social Research held a seminar titled ‘Present Economic Crisis and the Budget 2019-20’ at the Zaki Hasan Auditorium, Jinnah Medical and Dental College, Karachi. Dr. Riaz Ahmed Shaikh, Dr. Syed Jaffar Ahmad, Mr. Karamat Ali and Dr. S Akbar Zaidi were the speakers who reflected on current economic crisis in Pakistan, how it should ... Read More
 
 
Budget Study Centre   Issue 42 June 13, 2019

CPDI BUDGET WATCH

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

www.yourstory.com (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

valuewalk.com (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
 
 
 
Budget Study Centre   Issue 41 May 30, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Pakistan’s financing needs grow to 42.3pc of GDP: IMF

The Dawn (May 30, 2019)
WASHINGTON: Pakistan’s gross financing needs during 2019 increased to 42.3 per cent of GDP as budget deficit increased to 7pc and maturing debt widened to 35.1pc of the GDP, data released by the International Monetary Fund (IMF) showed on Tuesday. The IMF in its fiscal monitor for April said that, “in Pakistan, the overall deficit was 2.5 percentage points of GDP looser than budgeted, owing to... Read More
 

Govt recommends Rs36.7b as development budget for finance ministry

The Nation (May 30, 2019)
ISLAMABAD - The federal government has recommended Rs36.7 billion as development budget for the ministry of finance that included Rs25.3 billion for tribal districts development in the next budget for fiscal year 2019-2020. READ MORE: Russia rejects US claims on Nuclear Test Ban Treaty violation: Ambassador The overall development budget of the ministry of finance... Read More
 

NEC approves 4pc GDP growth target for next fiscal year

Pakistan Today (May 29, 2019)
ISLAMABAD: The meeting of the National Economic Council (NEC), chaired by Prime Minister Imran Khan, approved the National Development Outlay 2019-20 amounting to Rs1.837 trillion, including the federal Public Sector Development Programme (PSDP) and provincial Annual Development Plans (ADPs). The meeting, which was held at the PM Office, reviewed the Annual Plan ... Read More
 

Govt to present budget on June 11

Pakistan Today (May 28, 2019)
ISLAMABAD: Amid a recent reshuffle in the finance team and economic uncertainty, the Pakistan Tehreek-e-Insaf (PTI) government has decided to present the budget for the financial year 2019-20 on June 11. This was announced by Prime Minister’s Special Assistant Dr Firdous Ashiq Awan in a press conference after a meeting of the federal cabinet... Read More
 

Trade deficit of Pakistan- a vicious cycle

Express Tribune (May 27, 2019)
KARACHI: As the government undertakes yet another programme with the International Monetary Fund (IMF), the challenge to steer the economy away from the vicious cycle of high fiscal and current account deficits, coupled with critically low foreign currency reserves, is insurmountable. The recent attack by currency speculators on the foreign exchange... Read More
 

All stakeholders being taken on board to finalize budget: Finance Division

Radio Pakistan (May 27, 2019)
Spokesperson of Finance Division Dr. Khaqan Hassan Najeeb says extensive work is underway for finalization of a budget reflective of the needs of the economy.  In a tweet today, he said government is taking all stakeholders on board through consultation. Dr Khaqan Hassan Najeeb said the private sector, Chambers, Trade Associations and academia is... Read More
 

Hafeez Sheikh reviews budget proposals

Pakistan Today (May 26, 2019)
ISLAMABAD: Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Sheikh Sunday chaired a meeting to review Budget proposals. On the occasion, Federal Board of Revenue (FBR) Chairman Shabbar Zaidi gave a presentation about the budget proposals for the 2019-2020 and proposed various steps to expand the tax base and increase... Read More
 

Rs5.5tr revenue target will choke economy: Dr Ashfaq

The News (May 26, 2019)
ISLAMABAD: Renowned economist Dr Ashfaq Hasan Khan has termed government’s revenue target of Rs5.5 trillion in coming budgetary year at a projected growth of 4 percent a mere joke, adding it is tantamount to further choking the economy. No one can understand as how this economic team will achieve the target of additional taxation of over Rs1 trillion in the... Read More
 

Pakistan bracing for austere budget under IMF

Business Recorder (May 25, 2019)
ISLAMABAD: Pakistan is preparing a belt-tightening budget to tame its fiscal deficit, Hafeez Shaikh said on Saturday, adding that both civilian and military rulers agreed austerity measures were needed to stabilise the economy. But Hafeez Shaikh, Prime Minister Imran Khan’s top finance adviser, declined to say whether the military’s hefty budget would be cut following last... Read More
 

Punjab aims for 7% growth by 2023

Express Tribune (May 25, 2019)
Lahore: The Punjab government launched its growth strategy for the next five years (2018-2023), with an ambitious vision of provincial bureaucracy and few senior economists, particularly if examined in the current context of the country’s overall economy. The provincial government hopes to achieve a globally connected and competitive Punjab with sustainable economic... Read More
 

Uplift budget cut by 13% for FY 2019-20

Express Tribune (May 24, 2019)
ISLAMABAD.: The federal and four provincial governments have proposed nearly Rs1.6 trillion for development spending in next fiscal year, which is lower by Rs227 billion or nearly 13 per cent due to International Monetary Fund-backed fiscal consolidation programme. The Annual Plan Coordination Committee (APCC) recommended on Thursday Rs1.586-trillion National Development... Read More
 

Minister vows to end circular debt by Dec 2020

Pakistan Today (May 24, 2019)
ISLAMABAD: Power Minister Omar Ayub Khan said on Friday that a system of automatic metering is being introduced in the country to bring efficiency in the power sector and to stop power pilferage. Addressing a news conference, he expressed confidence that circular debt would be completely eliminated by December next year. “The energy sector will observe a... Read More
 

Sales tax rate may be raised from 17pc to 18pc in budget

Business Recorder (May 23, 2019)
The Federal Board of Revenue (FBR) is considering increasing standard rate of Sales Tax from 17 to 18 percent, increase in rate of Federal Excise Duty (FED) on certain excisable commodities and imposition of FED on a few new items and withdrawal of income tax exemptions available to the privileged class in coming budget (2019-20). Sources told Business Recorder... Read More
 

Deal with IMF must be renegotiated: Dr Pasha

The News (May 23, 2019)
ISLAMABAD: The budget of current fiscal year has gone out of control of the incumbent regime on account of zero growth in revenue and the budget deficit in first nine months has surged to 5 percent of the GDP which hasn’t happened in the last 11 years. If this trend continues, the budget deficit is feared to swell up to Rs2,800 billion (over 7 percent of GDP) by June 30, 2019. This has happened ... Read More
 

FDI drops 52% as economic uncertainty bites

Express Tribune (May 22, 2019)
KARACHI: Foreign direct investment (FDI) dropped 52% to $1.37 billion in first 10 months (Jul-Apr) of the current fiscal year due to spread of economic uncertainty. The FDI had been recorded at $2.84 billion in the same period of previous year, the State Bank of Pakistan (SBP) reported on Tuesday. “Economic uncertainty prompted foreign firms to put their investment decisions on... Read More
 

Rs 1,922 billion highest budget deficit in the nine months

The News (May 22, 2019)
ISLAMABAD: Owing to zero growth in total revenues and increase in interest payment and defence expenditures by 24 percent, Pakistan’s budget deficit has sharply widened to Rs1922.4 billion or 5 percent of GDP in first nine months of the current fiscal year. This is highest ever budget deficit materialised in first nine months in percentage of GDP during the last 30 years since 1991. The budget deficit both in... Read More
 

Total debt getting close to size of economy

Express Tribune (May 21, 2019)
ISLAMABAD: Pakistan’s debt and liabilities have risen steeply to Rs35.1 trillion or 91.2% of size of the economy, further deepening concerns over debt trap that has started limiting the government’s policy options. The statistics released by the State Bank of Pakistan (SBP) at the weekend showed that only from July through March of this fiscal year, there was a net addition of Rs5.2 trillion in the country’s... Read More
 

IMF aid programmes mostly help but need fine-tuning: report

Pakistan Today (May 21, 2019)
WASHINGTON: Three-quarters of International Monetary Fund aid programmes over a six-year period attained their goals fully or partially but there were some failings, including rose-coloured growth forecasts, the fund said Monday. Between 2011 and 2017, the IMF oversaw 133 economic aid programmes for member countries, according to a review... Read More
 

Tech start-ups can transform Pakistan’s economy

Express Tribune (May 20, 2019)
ISLAMABAD:  Careem is the first Pakistani unicorn. Oh wait. No. Mudassir Sheikha is Pakistani but the co-founder is not. And the company started operations in Dubai. Uber bought it for over $3.1 billion, but where will the money go? How will it affect the next cycle of Pakistani entrepreneurs? Let’s look at another example: Elastica. The founder, Rehan Jalil, is Pakistani... Read More
 

Economy will come out of crisis soon, says PM

Dawn (May 20, 2019)
ISLAMABAD: Prime Minister Imran Khan expressed confidence on Sunday that problems confronting the economy would be overcome soon through concerted efforts by the government and the business community. Mr Khan was speaking to a delegation of leading businessmen who called on him to offer suggestions to pull the country out of the economic crisis... Read More
 

Pakistan’s latest IMF bailout will not succeed without major cuts in the defense budget. EFSAS Commentary

Pakistan Christian Post (May 19, 2019)
In its recently published commentary, “Pakistan’s latest IMF bailout will not succeed without major cuts in the defense budget”, the European Foundation for South Asian Studies (EFSAS) comments on the International Monetary Fund’s (IMF) announcement that it had reached a Staff-Level Agreement with Pakistan for about $6 billion. If approved by the IMF’s Executive... Read More
 

Budget to make no changes in amnesty scheme: Zaidi

Dawn (May 19, 2019)
KARACHI: Federal Board of Revenue (FBR) chairman Shabbar Zaidi on Saturday said there was no ambiguity in the tax amn­esty scheme and that no changes would be made in the Finance Bill in this regard. Addressing members of the Karachi Chamber of Commerce and Industry (KCCI), he said the tax amnesty scheme would be made part of the Finance Bill for its formal approval by parliament... Read More
 

Don’t blame the IMF

Dawn by S Akbar Zaidi (May 18, 2019)
THERE is little disagreement that Pakistan’s economy is in a disastrous state. Even the prime minister and Pakistan’s last finance minister have acknowledged this truth, publicly. In fact, the last elected politician to hold the job as finance minister was fired precisely because the economy was in such a mess. Not only is every key economic indicator in poor shape, all indications suggest that... Read More
 

PSX delegates call on Hafeez Sheikh amid depressed market sentiment

Business World (May 18, 2019)
KARACHI: A delegation of leading businessmen and brokers here on Friday held a meeting with Adviser to Prime Minister on Finance Dr Abdul Hafeez Sheikh and discussed overall macro-economic situation and its impact on capital markets in the country. The delegation, comprising Chairman Pakistan Stock Exchange (PSX) Sulaiman Mehdi, Bashir Jan Mohammad... Read More
 

NA Speaker opens debate on pre-budget proposals

News (May 17, 2019)
ISLAMABAD: Speaker National Assembly Asad Qaiser on Thursday initiated comprehensive discussion on pre-budget proposals for agriculture development and outlined that farmers’ profitability, improved productivity, technology transfer and adaptation, access to new markets and rapid shift from low value to high value agricultural products... Read More
 
 
 
Budget Study Centre   Issue 40 May 16, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Trade deficit contracts 13% in Jul-Apr FY 19

Express Tribune (May 16, 2019)
KARACHI: Pakistan’s trade deficit widened over 22% to $2.66 billion in April 2019 because of increase in imports, particularly the expensive petroleum products for running oil-fired power plants during the current summer season when demand rose sharply. The trade deficit stood at $2.18 billion in the previous month of March, the Pakistan Bureau of Statistics (PBS) reported on Wednesday... Read More
 

Agreement with IMF to end uncertainty

The Nation (May 16, 2019)
KARACHI - President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday said the long-delayed agreement with IMF may help calm the markets. After the agreement, the local and foreign investors will be able to take... Read More
 

Imran govt approves first tax amnesty scheme

Pakistan Today (May 15, 2019)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government on Tuesday finally approved the Asset Declaration Scheme after weeks of scrutiny amid internal opposition in a bid to “document the economy and to bring dead assets into the economy and make them functional”. PM’s Adviser on Finance Dr Abdul Hafeez Shaikh briefed the media on the scheme after a meeting of the federal ... Read More
 

Rs 750-800 billion PSDP likely: Hafeez explain criticality of IMF bailout

Business Recorder (May 15, 2019)
Advisor to Prime Minister on Finance Dr Hafeez Shaikh has said that the government is likely to allocate Rs 750-800 billion under Public Sector Development Programme (PSPD) in the upcoming budget for 2019-20. Addressing a press conference here at Federal Board of Revenue (FBR) House on Tuesday, the advisor said that the government is likely to unveil the budget for 2019-20 on June 10 or... Read More
 

Budget proposals: SCCI calls for review of APTTA

Business Recorder (May 13, 2019)
Sarhad Chamber of Commerce and Industry (SCCI) has called for review of Afghanistan-Pakistan Transit Trade Agreement (APTTA) for the facilitation of imports with Afghanistan and introduction of an effective mechanism based on some quantitative ceilings to collect duty at import stage. Similarly, it has also recommended the streamlining of exchange control mechanism for financing... Read More
 

Pakistan finalizes $6bn IMF bailout package

Aljazeera (May 13, 2019)
Islamabad, Pakistan - The International Monetary Fund (IMF) and Pakistan have agreed on terms for a $6bn bailout package, to be disbursed over a span of more than three years, bringing an end to months of negotiations with the international lender. The agreement was confirmed by the IMF which added that the funds would be disbursed over 39 months. "Pakistan... Read More
 

Self-defeating economic thought process

Pakistan Today (May 12, 2019)
Exports have risen negligibly during the tenure of the PTI government. Given that the country inherited a huge current account deficit, and a large external debt servicing requirement, disappointingly, raising exports could still not become one of the government’s main areas of focus. The delay in announcing any meaningful steps to boost exports points to the PTI’s lack of preparedness... Read More
 

Pakistan agrees another multi-billion IMF bailout

Reuters (May 12, 2019)
ISLAMABAD (Reuters) - Pakistan has reached an accord with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up fragile public finances and strengthening a slowing economy, officials said on Sunday. The deal, which still needs approval by the IMF board in Washington, would be the 13th such bailout since the late 1980s Finance Minister Abdul... Read More
 

Budget Blues

Pakistan Today (May 11, 2019)
Barring a last minute glitch, around a $7billion IMF (International Monetary Fund) bailout package is virtually clinched. Now begins the hard part of meeting the international lending agency’s tough condtionalites. The conventional wisdom is that in the end analysis Islamabad completely capitulated in negotiations with the IMF officials. In the backdrop of an unprecedented shuffle in the finance team... Read More
 

APWC for introducing economic reforms in budget

The Nation (May 11, 2019)
LAHORE (PR) All Pakistan Workers Confederation has said that federal and provincial governments may announce far reaching economic and social reforms in their forthcoming annual budgets. It also called for adopting austerity measures in the country and develop national industries and agriculture and trade. It was also called upon the government to ensure safe and healthy... Read More
 

Pakistan economy grows by mere 3.3 percent in 2018-19 amid IMF bailout threat: Reports

Indian Express (May 10, 2019)
ISLAMABAD: Pakistan's economy registered a dismal 3.3 per cent growth in 2018-19, achieving just over 50 per cent of its projected target, as all key sectors failed to perform in the first year of Prime Minister Imran Khan's government, according to media reports on Friday. The poor show came as the cash-strapped Pakistan Tehreek-e-Insaf government was negotiating a bailout package from the... Read More
 

Budget 2019/20 should be based on ‘low-tax-rate’, long term growth

Daily Times (May 10, 2019)
ACCA (the “Association of Chartered Certified Accountants”) believes that it is time to make radical changes in the approach towards budget and the economic model of Pakistan. We are compelled to think beyond twelve months and take medium to long term perspective focusing on inclusive economic growth and development model for Pakistan rather than just managing cash... Read More
 

Pakistan’s exports to India grow 1pc in 8 months

The Nation (May 09, 2019)
ISLAMABAD - Pakistan’s exports of goods and services to India grew by one percent during the first eight months of the current fiscal year compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported. The overall exports to India were recorded at $273.530 million during July-February (2018-19) against exports of $270.843 million during July-February... Read More
 

FO terms increase in Indian defence budget an attempt to start arms race in region

Dunya News (May 09, 2019)
ISLAMABAD (Dunya News) – Foreign Office Spokesperson Dr Muhammad Faisal on Thursday termed the increase in Indian defence budget an attempt to start an arms race in the region but New Delhi know that increasing the budget won’t affect anything. Addressing a weekly news briefing in Islamabad on Thursday, he said that passion is most important for the defence of the... Read More
 

Chaos in FBR as govt aims for budget on May 22

Dawn (May 08, 2019)
ISLAMABAD: The government is aiming to announce the federal budget on May 22, according to a communication received at the tax bureaucracy last week, as confusion reigns over the status of the current and incoming chiefs of the Federal Board of Revenue (FBR). Meanwhile, the summary to appoint Shabbar Zaidi, a Karachi-based chartered accountant, as new chairman of the FBR was... Read More
 

Money laundering is a major threat to economy

Daily Times (May 08, 2019)
Money laundering, white-collar crime, corruption and tax aversion are global issues and not a challenge for Pakistan alone. That said, they have had a major role in the destruction of Pakistan’s economy. The recent inflation and the hike in prices of fuels is all because of corruption and money laundering. Money laundering is a serious crime against the state. A ‘launderer’ disguises the origin of the money... Read More
 

Inflation, price hike and Pakistan’s economic structure-II

Business Recorder (May 07, 2019)
It is a common knowledge in Paki-stan that in the present day market mechanism, middlemen buy crops or product of the agriculturist 'upfront' much before the production as the agriculturists/producers do not possess sufficient money for seed, fertilizer, pesticides and labour. It is quite interesting to note that in many sectors the number of actual producers for a particular... Read More
 

Budget likely to be postponed till mid-June

Pakistan Today  (May 07, 2019)
ISLAMABAD: Amidst prolonged negotiations with the International Monetary Fund (IMF), the Pakistan Tehreek-e-Insaf government has started thinking about delaying the next budget to the second week of June, it was learnt on Tuesday. “Instead of presenting federal budget for the financial year 2019-2020 on May 22nd, as announced earlier by the government... Read More
 

Pakistan doesn’t need additional taxes to cover revenue shortfall: WB

Dawn (May 06, 2019)
ISLAMABAD: Pakistan has substantial potential to increase tax receipts without imposing new taxes or increasing their rates. The country’s tax revenue potential would reach 26 per cent of GDP, if tax compliance were to be raised to 75 per cent, which is a realistic level of compliance for lower middle income countries. This means that Pakistan’s tax authorities are currently capturing only... Read More
 

Budget expectations

Daily Times (May 06, 2019)
A country’s Budget is a most powerful financial document of its kind. It is a tool to control future commitments with the available resources. An ideal situation for Financial Managers making a country’s budget is where revenues may be more than expenditures. This situation never exists specially in third world countries where resources are scarcer than requirements... Read More
 

ICAP for focusing on ease of doing business, reforms in budget

The Nation (May 05, 2019)
ISLAMABAD   -   The Institute of Charter Accountants of Pakistan (ICAP) here on Saturday recommended the government to pay its special attention on ease of doing business, reforms in tax laws, harmonization of taxation system and broadening the tax base in upcoming federal budget for the fiscal year 2019-20. “Pakistan’s tax-to-GDP ratio is the main impediment in the economic development... Read More
 

CPEC: Economic prosperity for Pakistan

The News (May 05, 2019)
Pakistan has embarked on a journey of economic growth. Being the 23rd largest economy in the world by Purchasing Power Parity, Pakistan has now picked up the pace in collaboration with economic partners from around the world. The state now possesses the capability to boost its semi-industrialized economy and gain acknowledgement over its manufacturing, agriculture... Read More
 

IMF asks Pakistan to maintain uplift spending

Daily Times (May 04, 2019)
ISLAMABAD: The International Monetary Fund (IMF) wants Pakistan to “protect” its development spending at this year’s level in the coming budget. Head of IMF Mission to Pakistan Ernesto Rigo gave these views during a meeting with Planning, Development and Reform Secretary Zafar Hasan, according to the planning ministry officials. Rigo is leading... Read More
 

$1bn ADB loan likely for budgetary support

Dawn News (May 03, 2019)
THE Asian Development Bank (ADB) on Thursday agreed to give $1bn budgetary support to Pakistan soon after a green signal from the International Monetary Fund (IMF) as the government had promised to have a majority transformation of its high debts having serious socio-economic and financial repercussions. Speaking at a news conference at the 52nd Annual... Read More
 

‘Budget to focus on macroeconomic stability, welfare of vulnerable segments’

Pakistan Today (May 03, 2019)
ISLAMABAD: Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh said on Friday that the upcoming budget for the fiscal year 2019-20 would focus on bringing about macroeconomic stability in the country, adding that the government also intends to introduce reforms that could uplift the vulnerable segments of the society. “The budget will comprise measures... Read More
 
 
 
Budget Study Centre   Issue 39 May 02, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Bailout talks with IMF far from conclusion

Express Tribune by Shahbaz Rana (May 02, 2019)
ISLAMABAD:  Pakistan and the International Monetary Fund (IMF) have yet to bridge their differences in three major policy areas, as the global lender seeks upfront monetary tightening and elimination of the flow of circular debt from the first year of the programme. Pakistani and IMF officials held a first face-off plenary meeting on Wednesday in which all key policy areas were discussed... Read More
 

Budget deficit likely to touch record Rs2.7 trillion despite mini-budget

The Nation (May 02, 2019)
ISLAMABAD-Pakistan budget deficit is expected to touch record Rs2.7 trillion in current fiscal year mainly due to massive shortfall in tax collection and increase in interest payment. The country’s budget deficit would widen to Rs2.7 trillion in the current financial year, which would be equal to 7 percent of the gross domestic product (GDP). The budget deficit would be highest ever... Read More
 

FBR misses tax revenue target by record margin

Express Tribune (May 01, 2019)
ISLAMABAD: The shortfall in tax collection has widened to a record Rs345 billion in the first ten months of this fiscal year amid differences between Pakistan and the International Monetary Fund (IMF) over a strategy to achieve the tax target for the next fiscal year. Despite a steep shortfall in tax revenues, the federal government on Tuesday surprisingly... Read More
 

Free trade agreement with China to help revive Pakistani economy

Global Times (May 01, 2019)
The second phase of Free Trade Agreement (FTA) between Pakistan and China will give a boom to Pakistan's agriculture besides supporting its industry as more Pakistani products are expected to have access to the Chinese market with zero tariff. China is already investing dozens billion US dollars through the China-Pakistan Economic Corridor (CPEC) in Pakistan, and local observers believe that the... Read More
 

Cabinet unlikely to consider tax amnesty scheme, budget strategy paper today

Business Recorder by Zaheer Abassi (Apr 30, 2019)
A meeting of the federal cabinet is unlikely to consider budget strategy paper and tax amnesty scheme today (Tuesday) as a special meeting will be convened for extensive discussion on them before their approval due to their impact on the people. Sources on condition of anonymity stated as measures finalised in the budget strategy paper will have impact on people''s life, therefore... Read More
 

FY19 budget: Rs 20 million earmarked to pick up cost of remittances

Business Recorder (Apr 30, 2019)
The government allocated Rs 20 million in the budget for 2018-19 to pick up the transaction cost of remittances with the objective of facilitating overseas Pakistanis to remit money through formal channels under Pakistan Remittance Imitative (PRI). This was stated by sources in the finance ministry and State Bank of Pakistan. Specific cost of the remitter or an institution... Read More
 

Revenue-generating sectors to get priority in next budget

Dawn News (Apr 29, 2019)
QUETTA: The Balochistan government has decided to give importance to revenue-generating sectors in the next budget. A meeting presided over by Chief Minister Jam Kamal Khan Alyani reviewed budget proposals for the next financial year and implementation of the ongoing development schemes. The meeting observed that the sectors which had no role in revenue generation... Read More
 

IMF team arrives today for talks on bailout package

Daily Times (Apr 29, 2019)
A team of the International Monetary Fund (IMF) is set to arrive in Pakistan on Monday (today) to hold technical-level talks on a three-year bailout package. The IMF mission, headed by Ernesto Ramirez Rigo, will reach on April 29 and will stay in the country till May 7. The mission will also visit various institutions during their stay in the country. Pakistani side for negotiations with the IMF will be led by... Read More
 

Upcoming budget termed crucial

The News (Apr 28, 2019)
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has warned that the ongoing economic scenario has made upcoming budget more crucial, a statement said. Business community expects the government to keep its suggestions on top if it wants to reduce the economic challenges, it added. LCCI office-bearers said electricity and gas prices must be uniform in... Read More
 

Budget 209-2020: PCMA demands relief package for development of chemical industry

Business Recorder (Apr 27, 2019)
Pakistan Chemical Manufacturers Association (PCMA) has demanded of the government to provide a comprehensive relief package for development of chemical industry in the forthcoming budget. PCMA's Secretary General Syed Iqbal Kidwai on Friday said the association's member companies are playing key role in providing important chemicals to export oriented sectors. But, despite huge potential... Read More
 

EFP-EC present Federal Budget proposals 2019-2020

Daily Times (Apr 27, 2019)
Majyd Aziz, President EFP, while introducing Federal Budget Proposals 2019-2020 stated, “The Economic Council of the Employers’ Federation of Pakistan in its first ever endeavor initiated pragmatic, doable, and workable solutions to the various economic and financial issues impeding the economic growth and prosperity of Pakistan. The proposals have been formulated after intensive... Read More
 

PM Khan calls for tackling climate change poverty as Pakistan, China enter next CPEC phase

Dawn News (Apr 26, 2019)
Prime Minister Imran Khan, in his keynote speech at the opening ceremony of the second Belt and Road Forum in Beijing on Friday, called for greater attention to tackling climate change and poverty as Pakistan and China enter the next phase of the China-Pakistan Economic Corridor (CPEC). The prime minister appreciated the significance of China's Belt and Road Initiative (BRI), saying it "marks a... Read More
 

Pakistan to begin talks with IMF from April 29

Pakistan Today (Apr 26, 2019)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) will begin discussing the aid package for Islamabad from April 29. The IMF mission, headed by Ernesto Ramirez Rigo, will reach Pakistan on April 29 and will be in the country till May 7. The mission will also visit various institutions during their time in the country. According to the sources, the Ministry of Finance issued a notification... Read More
 

Inflation not deficits is the new challenge for Pakistan’s economy

The Bloomberg (Apr 25, 2019)
High inflation is emerging as the new challenge for Pakistan, where authorities are trying to secure an International Monetary Fund bailout to avert a balance-of-payments crisis. Consumer prices in March rose to the highest level since 2013, with gains seen hovering above 8 percent through the first-quarter of 2020. That is likely to put the State Bank of Pakistan, the... Read More
 

Govt to present next budget by end of May

Pakistan Today (Apr 24, 2019)
ISLAMABAD: The government will be presenting the Federal Budget 2018-19 by the end of next month, a government official revealed on Wednesday. Talking to media after the meeting of National Assembly’s Standing Committee on Finance, Revenue and Economic Affairs, Finance Secretary Younus Dagha said that his ministry has expedited its work with regard to the next fiscal budget... Read More
 

Early warning? The resignation of Pakistan’s Finance Minister raises unpleasant questions

The Diplomat (Apr 23, 2019)
Pakistani Prime Minister Imran Khan’s confidant and a longtime member of the ruling Pakistan Tehreek-e-Insaaf (PTI) party, Asad Umar, resigned as finance minister last week. The development comes at a time when Pakistan is facing a serious economic crisis. Umar’s resignation raises fresh questions regarding Pakistan’s plans for averting an economic crisis amid bailout talks with the... Read More
 

PM Imran directs for pro-people budget

Pakistan Today (Apr 23, 2019)
ISLAMABAD: Prime Minister Imran Khan on Tuesday directed his cabinet members to introduce policies in the public interest and improve their performance in order to resolve the issues faced by the people. Briefing media persons about the decisions of the federal cabinet meeting, Special Assistant to the Prime Minister on Information and Broadcasting Firdous Ashiq Awan said that the prime minister had... Read More
 

Pakistan government ready to pay political cost to salvage sinking economy

Arab News  (Apr 22, 2019)
KARACHI: As Pakistan steps up efforts to negotiate loan program from the International Monetary Fund (IMF) before presenting federal budget for fiscal year FY20 next month, the top officials say the government is taking steps to salvage sinking economy, bracing itself for political repercussions. Pakistan is currently negotiating with IMF expecting $6-8 billion loan program for ... Read More
 

Dr Hafeez Shaikh ‘ineligible’ to chair NFC meeting, present next budget

Pakistan Today (Apr 22, 2019)
ISLAMABAD: Since the government has replaced the finance minister with an adviser, a number of issues have surfaced at the finance ministry amidst the absence of a full-fledged minister, it was learnt on Monday. As the important meeting of the National Finance Commission (NFC) is scheduled to be held on April 29, a legal issue has been raised that whether Prime Minister’s Adviser on Finance... Read More
 

PFC presents proposals on budget 2019-20 for enhancing furniture export

Dunya News (Apr 21, 2019)
(APP) – Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq on Saturday, on behalf of furniture producers, presented a set of proposals for upcoming Federal Budget 2019-20 to the Advisor to the Prime Minister, Abdul Razak Dawood. The PFC demanded allocation of special chunk of funds to boost furniture exports, besides giving the sector the... Read More
 

PFC presents budget proposals to Dawood

The Nation (Apr 21, 2019)
ISLAMABAD   -    Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq Saturday, on behalf of furniture producers, presented a set of proposals for upcoming federal budget 2019-20 to Advisor to Prime Minister Abdul Razak Dawood. The PFC demanded allocation of special chunk of funds to boost furniture exports, besides giving the sector the status of a full-fledged... Read More
 

‘Govt striving to promote industrialization, lure foreign investors’

Pakistan Today (Apr 20, 2019)
Advisor to Prime Minister on Institutional Reforms Dr Ishrat Hussain said on Saturday that the government is offering a number of incentives to entice foreign investors in various sectors of Pakistan’s economy. “The economic conditions of the country are continuously improving and can be gauged through various indicators,” he added while addressing an event titled... Read More
 

Hafiz Shaikh says budget to be announced not earlier than May 24

Dawn News (Apr 20, 2019)
In his first interaction with the media since being appointed the prime minister's adviser on finance, Dr Abdul Hafeez Shaikh revealed that he had already spoken to finance ministry officials regarding the budget for the next fiscal year. Speaking outside the finance ministry on Saturday, shortly before he left for a meeting with the prime minister, Shaikh said he had directed the... Read More
 

HEC may face up to 50% budget cuts

Pakistan Today (Apr 19, 2019)
ISLAMABAD: A special meeting of the Higher Education Commission (HEC) Friday, under the Chairmanship of its chairman Dr Tariq Banuri, reviewed the implications of ongoing fiscal crisis for the higher education sector, and in particular the budgetary projections for the fiscal year 2019-20. The commission was informed that the projected recurring budget demand of the higher education... Read More
 

Pakistan’s GDP growth to fall behind Nepal, Maldives this year: UN

Dawn News (Apr 05, 2019)
ISLAMABAD: The annual Economic and Social Survey of Asia and the Pacific 2019 titled ‘Ambitions beyond Growth’, released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) on Thursday, forecast Pakistan’s GDP to remain lowest in the region at 4.2 per cent in 2019 and 4pc in 2020 compared to Bangladesh’s 7.3pc... Read More
 
 
 
Budget Study Centre   Issue 38 April 18, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Asad Umar steps down as finance minister

Pakistan Today (April 18, 2019)
ISLAMABAD: Asad Umar on Thursday announced his decision to leave the post of federal finance minister. Umar took to Twitter and wrote, “As part of a cabinet reshuffle PM desired that I take the energy minister portfolio instead of finance. However, I have obtained his consent to not take any cabinet position. I strongly believe @ImranKhanPTI is the... Read More
 

Govt formulating policies to deal with budget, current account deficit: ADB

The News (Apr 18, 2019)
ISLAMABAD: While indicating $11.129 billion committed loans remained un-disbursed so far, the Asian Development Bank (ADB) on Wednesday stated that Pakistan’s new government was formulating policies to deal with vulnerabilities of budget deficit and current account deficit in order to restore its economic growth. In its annual report and financial... Read More
 

Pakistan’s GDP growth to hover around 5 percent in 2019: GECS

The News (Apr 17, 2019)
LAHORE: Pakistan’s economy is likely to grow by around 5 percent this year, but it faces challenges in the shape of alarmingly large fiscal and current account deficits, both running around 6 percent of the gross domestic product (GDP). These are the findings of Global Economic Conditions Survey (GECS) report for the first quarter (Q1) of 2019...Read More
 

Pakistan’s economy to weigh on region’s growth: IMF official

Dawn News (Apr 17, 2019)
WASHINGTON: Pakistan’s economy is projected to slow down significantly and weigh on the region’s aggregate growth rate, says Jihad Azour, director of the Middle East and Central Asia department at the International Monetary Fund. At a recent talk on the economic outlook for the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region...Read More
 

Pakistan eyes $22b package from lending agencies in three years

Express Tribune (Apr 16, 2019)
ISLAMABAD: The International Monetary Fund (IMF) on Monday announced that it will send a staff-level mission to Pakistan to finalise a bailout programme, as Finance Minister Asad Umar hoped to secure nearly $22 billion packages from three multilateral agencies in the next three years. “At the request of the (Pakistani) authorities, an IMF mission will... Read More
 

Trade bodies demand tax exemptions worth Rs 800b: FRB

Pakistan Today (Apr 16, 2019)
ISLAMABAD:  As the trade bodies and associations are giving budget suggestions to the government, Federal Board of Revenue (FBR) has complained that the business community is demanding tax exemptions worth Rs 800 billion. “FBR is already giving Rs 700 billion worth exemptions to various sectors. How and from where we can collect taxes... Read More
 

Pakistan to avail $6-8bn IMF package, says Asad Umar

Pakistan Today (Apr 15, 2019)
ISLAMABAD: Finance Minister Asad Umar on Monday said that Pakistan is all set to avail a bailout package from the International Monetary Fund (IMF) ranging between $6-8 billion. Addressing a press conference after his return from New York on Monday, the finance minister said that Pakistan and IMF have signed a policy-level agreement and both sides have also... Read More
 

Govt devises strategy to streamline budget allocations

The Nation (Mar 15, 2019)
ISLAMABAD: The government has been working on a comprehensive strategy to streamline budget allocations for each ministry with an aim to reduce expenditure rigidities. “Rather than providing budgetary funds to the line ministries in itemized details, the budget allocations for each ministry will be made under only two heads including employee related... Read More
 

Foreign reserves increase, fiscal deficit decreased: Khusro

Pakistan Observer (Apr 14, 2019)
Islamabad: Federal Minister for Planning, Development and Reform Makhdoom Khusro Bakhtiar has asserted that the federal government has been formulating and implementing effective reforms to strengthen the national economy. He spoke to a private news channel, and stated that improvement in every sector could be observed in the country... Read More
 

The development budget

The News (Apr 14, 2019)
Government spending on economic development is likely to take another hit next year as the finance ministry has indicated that the development outlay will remain the same for next year. Coming after a year of severe inflation, keeping the Public Sector Development Programme at Rs675 billion for 2019-20 equates to a real reduction in development spending... Read More
 

Bailout package with IMF almost worked out: Asad

The Dawn (Apr 13, 2019)
WASHINGTON: Pakistan and the International Monetary Fund (IMF) have — more or less — reached an understanding on a package for bailing out the country’s ailing economy, says Finance Minister Asad Umar. “During the last two days, we have, more or less, reached an understanding. In the next day or two, we hope to reach a full agreement and then we will share... Read More
 

Budgetary borrowing up 9pc

Dawn News (Apr 13, 2019)
KARACHI: The government’s borrowing for budgetary support increased by 8.8 per cent year-on year during 9MFY19, reported the State Bank of Pakistan (SBP) on Friday. The budgetary borrowing rose to Rs876 billion from July to April 5 FY19, compared to Rs805bn during the same period last fiscal year, representing an increase of Rs71bn or 8.8pc... Read More
 

Liquid foreign reserves stands at $17.22b

Pakistan Observer (Mar 12, 2019)
Karachi: The total liquid foreign reserves held by the country stood at US$17,228.3 million on 05April2019. The break-up of the foreign reserves position. Foreign reserves held by the State Bank of Pakistan $ 10,271.9 million. Net foreign reserves held by commercial banks $ 6,956.4 million. Total liquid foreign reserves $ 17,228.3 million... Read More
 

Next budget to be made in light of IMF programme

Pakistan Today (Apr 12, 2019)
ISLAMABAD: Pakistan and International Monitory Fund (IMF) have reportedly finalised the talks for the next bailout programme and have agreed to move forward towards the staff level agreement, it has been learnt. According to sources, after the positive talks with the IMF officials in Washington, the Fund would be sending its mission to Pakistan this... Read More
 

Despite no growth in exports, trade deficit shrinks 13%

Express Tribune (Apr 11, 2019)
ISLAMABAD: Pakistan’s exports flattened at $17 billion in first nine months of this fiscal year despite 34% currency devaluation in the last over one year, underscoring the need to review a strategy to weaken the currency for gaining export competitiveness. Where the growth in exports flattened in nine months, it, in fact, dipped over 11% on a year-on-year basis in... Read More
 

Foreign exchange: SBP reserves fall $220m to stand at 10.3b

Express Tribune (Apr 11, 2019)
KARACHI:  The foreign exchange reserves held by the central bank declined 2.1% 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. However, financial... Read More
 

FPCCI seeks viable budget proposals from all chambers

The News (Apr 10, 2019)
ISLAMABAD: The Federation of Pakistan Chambers and Commerce (FPCCI) on Tuesday sought viable budget proposals from all chambers for timely submission to the federal government for fully ensuring growth-oriented and business-friendly environment to boost the economic activities. FPCCI President Daroo Khan Achakzai said this during a meeting... Read More
 

IMF puts country’s growth rate at 2.5%

Express Tribune  (Apr 10, 2019)
ISLAMABAD:  Just a day after Finance Minister Asad Umar claimed that the economy is out of the woods, the International Monetary Fund (IMF) has said Pakistan’s economy will grow at an average rate of just 2.5% during the next five years and its external imbalance will remain elevated. If the IMF’s prophecy turns out to be true, Prime Minister Imran Khan... Read More
 

Govt urged to facilitate furniture sector in upcoming budget

Pakistan Today (Apr 09, 2019)
ISLAMABAD: Pakistan Furniture Council (PFC) on Tuesday urged the federal and provincial governments to allocate a special chunk of funds in the upcoming fiscal budget 2019-20 to boost furniture exports, besides giving the sector the status of a full-fledged industry. PFC Chief Executive Mian Kashif Ashfaq expressed these views while chairing a board of... Read More
 

SMEDA sends proposals for budget 2019-20

Pakistan Observer (Apr 09, 2019)
Lahore: The Small and Medium Enterprises Development Authority (SMEDA) has sent a set of proposals for Federal Budget 2019-20, which demands that SMEs being an important sector of our economy require assistance and support to ensure their sustained growth. The budget proposals compiled by SMEDA through extensive consultation with stakeholders... Read More
 

China denies CPEC intensified Pakistan’s economic risks

Economic Times (Apr 08, 2019)
BEIJING: China on Monday refuted criticism that the USD 60 billion CPEC has intensified Pakistan's economic risks, saying that less than 20 per cent of the current projects under the initiative are using Chinese loans. The China-Pakistan Economic Corridor (CPEC), which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship... Read More
 

Economy has come out of crises: Asad Umar

The News (Apr 08, 2019)
ISLAMABAD: Federal Minister of Finance Asad Umar said on Monday that the situation of crisis in the country has ended and we are now in a stage of stability which will continue for next year and a half. Addressing an event in the federal capital, the Pakistan Tehreek-e-Insaf (PTI) leader stated that the country’s economy is presently encountering three major... Read More
 

Pakistan’s GDP growth may slow down to 3.4%: World Bank

Express Tribune (Apr 07, 2019)
ISLAMABAD: Pakistan’s public debt would jump to 17 years highest level of 82.3 per cent of the size of its economy and budget deficit is projected to be over Rs2.6 trillion by the end of the current fiscal year, says a new report of the World Bank. The projected levels of the budget deficit – gap between expenditures and revenues – and public debt to Gross Domestic... Read More
 

PTI-led govt’s debt surges to Rs 27.6tr by Feb-end

The Express Tribune (Apr 06, 2019)
ISLAMABAD: The federal government’s debt has soared to Rs27.6 trillion with a net addition of Rs3.4 trillion in just eight months at a pace of nearly 14% due to low tax revenue, high expenditure and currency depreciation. From July through February 2018-19, the government on an average added Rs14 billion a day to its debt, which included almost six and... Read More
 

Pakistan’s GDP growth to fall behind Nepal, Maldives this year: UN

Dawn News (Apr 05, 2019)
ISLAMABAD: The annual Economic and Social Survey of Asia and the Pacific 2019 titled ‘Ambitions beyond Growth’, released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) on Thursday, forecast Pakistan’s GDP to remain lowest in the region at 4.2 per cent in 2019 and 4pc in 2020 compared to Bangladesh’s 7.3pc... Read More
 
 
 
Budget Study Centre   Issue 37 April 04, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

ADB forecasts grim outlook for Pakistan economy

The Nation (April 04, 2019)
ISLAMABAD   -   The Asian Development Bank (ADB) Wednesday forecasted that Pakistan’s GDP growth would decelerate to 3.9 percent during current fiscal year (FY2019) as macroeconomic challenges continue. “GDP growth is forecast to decelerate further to 3.9% in FY2019 as macroeconomic challenges continue and despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits,” the ADB noted in its recent... Read More
 

KP CM for ensuring 100 pc utilization of development budget

Pakistan Today (Apr 04, 2019)
PESHAWAR: Khyber Pakhtunkhwa (KP) Chief Minister (CM) Mahmood Khan here on Thursday directed all departments to ensure 100pc utilisation of developmental budget with a focus on the provision of quality services to people. The Chief Minister further directed all the departments to surrender unutilized budget by April 15 and additional and supplementary grant should be released after his consultation... Read More
 

Pakistan’s GDP expected to slow down to 3.9pc: ADB report

Dawn News (Apr 03, 2019)
Pakistan will continue to face macroeconomic challenges despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits, and in this backdrop, the country’s GDP is forecast to decelerate to 3.9 per cent in fiscal year 2019, says the Asian Development Bank (ADB) in a new report released on Wednesday. The report forecasts that continued fiscal consolidation (reduction in underlying fiscal deficit) in FY-2020 will keep growth subdued at 3.6pc...Read More
 

Influence of elite is a big problem for Pakistan’s economy

Sama TV (Apr 03, 2019)
One of the biggest problems for Pakistan’s economy is the influence of the elite, says Finance Minister Asad Umar. He expressed the belief that this influence can be reduced if not finished. The finance minister was speaking at a pre-budget seminar held in Islamabad on Tuesday. The withholding tax net has increased, he said, adding that many of the 41 barriers to trade have been finished. The property sector needs reforms, he said, adding that withholding tax for non-filers in the banking...Read More
 

Budget 2019: Government’s tax relief will make a big difference to Indian community

SBS.com (Apr 02, 2019)
In his first Budget speech, Federal Treasurer Josh Frydenberg has handed down a pre-election budget for the Coalition government with a budget surplus of 7.1 billion dollars for 2019/20 and announced more tax relief for low and middle-income earners. “As part of our plan for a stronger economy, we will provide tax relief to Australian taxpayers with immediate relief for low- and middle-income earners,” Minister Frydenberg told Parliament. “The Government will provide...Read More
 

Budget 2019-20 likely to be presented in Parliament on May 24: Finance Minister

Sama Tv (Apr 01, 2019)
The federal government is likely to present a new budget for the fiscal year 2019-20 in the National Assembly and Senate on May 24,  Finance Minister Asad Umar told the media in Islamabad on Monday. “Earlier, May 17 was proposed for the presentation of the new budget, but now May 24 is under consideration and a decision will soon be taken in consultation with the National Assembly speaker,” he said...Read More
 

Pakistan diverts CPEC corridor funds: China ties under pressure

Economic Times (Apr 01, 2019)
NEW DELHI: A controversy has erupted over the China-Pakistan Economic Corridor (CPEC) ahead of the second Belt and Road Initiative (BRI) summit in Beijing following allegations that the Pakistani government has diverted Rs 2,400 crore (around $171.6 million) meant for joint infrastructure development projects with China under BRI to other projects. China had given the money as part of the $62-billion infrastructure funding to build the CPEC. However, Pakistan’s... Read More
 

CPEC’s effects on Pakistan’s economy analysed

The News (Mar 31, 2019)
The China-Pakistan Economic Corridor (CPEC) will have a positive effect on Pakistan but certainly not a transformative one. These views were expressed by Dr Matthew McCartney, associate professor of political economy and human development in South Asia, Oxford School of Global and Area Studies, University of Oxford, UK, while addressing the members of the Pakistan Institute of International Affairs (PIIA) and the media on Saturday evening...Read More
 

A stabilizing economy; Reversing the damage

The News (Mar 31, 2019)
A little more than 200 days have passed since the PTI took over reins of the country in the midst of the worst economic crisis. It inherited multiple deficits that were allowed to surpass levels that are enough to run any economy to the ground. This article broadly lays out the significant progress on the economic stabilisation front in the first 200 days of PTI’s government and the direction that economic policy will take in the coming days. A country like Pakistan needs an adequate... Read More
 

Massive drop in foreign assistance, only $2.94bn received in July-Feb

Dawn News (Mar 30, 2019)
ISLAMABAD: Pakistan received a paltry $2.94 billion of budgeted foreign assistance in first eight months (July-February) of the current fiscal year, showing a massive decline of over 61pc over last year. This was despite the fact that Pakistan needed significantly higher inflows to finance a large current account deficit. Resultantly, the government had to mostly bank on short-term deposits and commercial loans worth more than $9bn from bilateral sources — Saudi Arabia, United ...Read More
 

Government’s projected indicators

Business Recorder (Mar 30, 2019)
According to a Business Recorder exclusive, the government's projected macroeconomic indicators for the current year shared with the International Monetary Fund (IMF) include: (i) growth rate of 3.7 percent (Planning Ministry had earlier showed a growth rate of 4.2 percent and downgraded it to 4 percent in February this year though the SBP second quarterly report projected a rate of 3.5 to 4 percent); (ii) budget deficit at 5.6 percent of GDP (Fitch rating agency projected a ...Read More
 

Budget 2019-20: Essential reforms

Business Recorder (Mar 29, 2019)
In this article, we are presenting some fundamental institutional/ structural reforms in tax system prior to announcement of budget 2019-20. For the last many decades, the main emphasis of every budget has been meaningless and cumbersome changes in the existing outdated, oppressive and anti-growth tax system, which itself is the root cause of major fiscal ills. It is strange and shocking that we want to reform a system that needs to be dismantled in entirety and should be... Read More
 

Finance minister to chair 9th NFC Award meeting today

The News (Mar 29, 2019)
LAHORE: Finance Minister Asad Umar will chair the fifth meeting of 9th National Finance Commission Award here today (Friday) which will be attended by the finance ministers of all the four provinces, and their nominated non-statutory members including Dr Salman Shah, Dr Asad Saeed, Musharraf Rasul, Mehfooz Ali Khan and other officials concerned including FBR chairman to brief about the performance of the six working groups constituted for ...Read More
 

Govt spending massively up, subsidies down in last FY

The Nation (Mar 28, 2019)
ISLAMABAD - The federal and four provincial governments massively slashed the subsidies by over 35 percent in last fiscal year 2017-18. The federal and provincials governments of the country had paid Rs260 billion as subsidies during the year 2017-18 as against Rs403 billion in preceding year showing reduction of over 35 percent. Pakistan’s budget deficit had ballooned to highest ever level of Rs2.26 trillion during last fiscal year despite slashing the subsidies massively...Read More
 

What Sri Lanka’s 2019 Budget Tells Us About Its Economic Health

The Diplomat (Mar 27, 2019)
Following one of the most dramatic political crises in the recent history of South Asia, Sri Lanka’s government budget for 2019 was approved by the majority of the parliament on March 12. The 2019 budget was supposed to be presented to the parliament in November 2018, but President Maithripala Sirisena’s unexpected (and later overturned) decision to change prime ministers in October 2018 pushed back the budget. Later, a Vote of Account was... Read More
 

Shujaat calls for APC on economy

Pakistan Today (Mar 26, 2019)
Pakistan Muslim League-Quaid (PML-Q) President Chaudhry Shujaat Hussain on Tuesday underscored the need for an all parties conference to boost economy. Talking to journalists, Shujaat said that the prevailing political situation was harmful for economic stability. Referring to the train march of Pakistan People’s Party, he said that some elements were giving preference to personnel interests over national interests. The PML-Q said that nothing would... Read More
 

Pakistan eyes package as IMF mission chief arrives today

Dawn News (Mar 26, 2019)
ISLAMABAD: As the arrival of $2.1 billion Chinese loans jacked up Pakistan’s total foreign exchange reserves to $17.58bn — highest since April 2018 — the government is expecting finalisation of a bailout package with the International Monetary Fund (IMF) in four-six weeks to form the basis for next year budget. IMF’s new mission chief for Pakistan Ernesto Ramirez Rigo is set to touch base with Finance Minister Asad Umar and senior officials of his ministry on Tuesday over authorities’... Read More
 

Macro-economic stabilization steps start yielding: SBP report

The News  (Mar 25, 2019)
KARACHI: State Bank of Pakistan (SBP) on Monday released its second quarterly Report on "The State of Pakistan's Economy for fiscal year 2018-19," which stated the effects of macroeconomic stabilization measures taken since December 2017 have started to unfold as the economy moved into the second quarter of fiscal year 2018-19. More specifically, monetary tightening along with exchange rate adjustments, reduction in development expenditures of the federal... Read More
 

EU, Pakistan agree on new engagement plan for trade, economy

The Geo Tv (Mar 25, 2019)
ISLAMABAD: Pakistan and the European Union (EU) on Monday agreed to a new strategic engagement plan for building a sturdy partnership in the fields of defence, trade, democracy, governance and human rights. The agreement to this effect was reached during the fourth round of a strategic dialogue between Pakistan and the European Union here. Foreign Minister Shah Mahmood Qureshi led the Pakistani side, while EU Representative for Foreign Affairs and...Read More
 

China finance minister says balancing budget revenue and spending difficult this year

The Reuters (Mar 24, 2019)
BEIJING (Reuters) - China’s Finance Minister, Liu Kun, said on Sunday it will be difficult for the government to balance its budget revenue and spending this year due to various tax and fee cuts planned this year to support growth. Liu, speaking at the China Development Forum, said the government is still able to balance its budget overall through a variety of means, adding that general central government spending will be cut by more than 10 percent this year...Read More
 

To fix the economy, start with the power sector

Dawn News (Mar 24, 2019)
From time to time Dawn invites people with stakes or expertise in any area of the economy to contribute their thoughts on issues of pressing concern. Today we invite Dr Kamal Munir, a professor of strategy & policy at the University of Cambridge and Salman Khalid, an emerging markets investment professional and a former Fulbright Scholar, to reflect on the rising costs of power in Pakistan...Read More
 

‘Pakistan can become economic leader’

The Express Tribune (Mar 23, 2019)
LAHORE: Pakistan should aim for achieving top position in the international ranking for ease of doing business instead of considering jumping just a few notches. It was stated by Lahore Chamber of Commerce and Industry President Almas Hyder while briefing a three-member World Bank delegation, led by Lars Grava. During the meeting, textile, information technology, agro-business and other sectors of the economy came under discussion. Hyder added that Pakistan...Read More
 

Declining investment-to-GDP ratio

Business Recorder (Mar 23, 2019)
A World Bank report titled "Pakistan@100 Growth and Investment" maintains that Pakistan's low public and private investment will place it at a disadvantage to peer countries. The investment-to-GDP ratio in Sri Lanka, Bangladesh, Thailand, Cambodia and India has been continuously higher than in Pakistan for the past 10 years; savings in Pakistan at present are 13.8 percent of GDP with an investment at 15 percent of GDP and in contrast, Sri Lanka's savings...Read More
 

Pakistan to receive $2.1 billion loan from China by March 25

The Khaleej Times (Mar 22, 2019)
Cash-strapped Pakistan will receive over $2 billion loan from China by Monday to provide a boost to its ailing economy, the Finance Ministry has announced. Ministry's adviser and spokesperson Khaqan Najeeb Khan said that "all procedural formalities" for the transfer of $2.1 billion (15 billion yuan) loan being provided by the Chinese government have been completed, and "the funds will be deposited in the State Bank of Pakistan's account by Monday, March 25", the...Read More
 

Murad says provinces face financial crises due to poor state of national economy

Dawn News (Mar 09, 2019)
JAMSHORO: Sindh Chief Min-is¬ter Syed Murad Ali Shah has said that provinces face severe crisis due to poor state of national economy as federal government has thus far failed miserably to improve conditions. The government should work harder to bolster economy and scale up tax collection instead of launching scathing attacks on others and issuing boastful statements, said Mr Shah while talking to media persons after graduation ceremony at the US-Pakistan Centre for...Read More
 

CPEC likely to contribute 3.5%to Pakistan’s GDP

The Express Tribune (Mar 22, 2019)
KARACHI: China’s investment of over $60 billion in Pakistan’s infrastructure and power projects under the China-Pakistan Economic Corridor (CPEC) is expected to increase Pakistan’s economic growth by around 3.5 percentage points, said Standard Chartered Bank (Pakistan) CEO Shahzad Dada on Thursday. “CPEC projects are estimated to contribute around 3.5 percentage points to Pakistan’s GDP (gross domestic product) growth once they are fully delivered,” he... Read More
 
 
Budget Study Centre   Issue 36 March 21, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Pakistan to receive $2.1bn loan from China by Monday

The Pakistan Today (Mar 21, 2019)
The Ministry of Finance has announced that the State Bank of Pakistan (SBP) will receive a loan of 15 billion yuan ($2.1 billion) from China by Monday, a private media outlet reported on Thursday. The ministry’s advisor and spokesperson Dr Khaqan Najeeb Khan said that “all procedural formalities” for the transfer of the loan being provided to Pakistan by the Chinese government have been completed, and “the funds will be deposited in the SBP account by Monday 25th March”... Read More
 

ECC approves Rs 17.5 billion supplementary budget

The Express Tribune (Mar 21, 2019)
ISLAMABAD: The government on Wednesday approved Rs17.5 billion supplementary budget for largely meeting expenditures of legislators and temporarily displaced persons including Rs400 million for maintaining an aircraft being used by Prime Minister Imran Khan. The Economic Coordination Committee (ECC) of the Cabinet also approved higher hydel profit for Azad Jammu and Kashmir (AJK) government that will provide Rs10 billion additional income to... Read More
 

Pakistan can become a $2trllion economy- World Bank

The Eur Asian Times (Mar 20, 2019)
According to the World Bank, Pakistan could become a $2 trillion economy in the next 28 years if it remains constant in its reforms and works to reduce its population growth rate. “With sustained reforms, Pakistan could be a $2 trillion economy when it will turn 100 in the next 28 years,” said the World Bank (WB) Country Director Patchamuthu Illangovan while sharing the main findings of the ‘Pakistan @100- Sharing the Future 2047′ report on Monday...Read More
 

World Bank suggests involvement of more countries in CPEC

The Pakistan Today(Mar 20, 2019)
ISLAMABAD: A new World Bank report has stated that multi-country involvement in the China Pakistan Economic Corridor (CPEC) can help achieve greater regional integration. Suggesting various steps to be taken towards greater regional integration to liberalize trade and improve logistics, a WB report titled “Pakistan@100: Shaping the Future” said CPEC can be used to improve relations with other countries that could benefit from it, including Iran, India, Afghanistan...Read More
 

Business urged to submit budget proposals on time

The Business Recorder (Mar 19, 2019)
LAHORE: Private sector should prepare their actionable proposals and submit them timely for Pakistan Tehreek-e-Insaf government’s first federal budget 2019-20. Likewise, the Planning Commission is formulating the 12th Five-Year Plan and Ministry of Commerce is formulating three-year Strategic Trade Policy Framework for which business community should proactively engage with the relevant departments and submit sector-specific...Read More
 

‘Pakistan IMF agree on policy directions’

The News (Mar 19, 2019)
KARACHI: Pakistan and International Monetary Fund (IMF) have generally reached an agreement over the bailout program to meet the financing gap, but timing and pace of stabilisation policies are under discussion, SBP Governor said on Monday. “There is a general agreement regarding the policy direction between us and the IMF; the differences are only on the timing and pace of stabilisation policies,” Governor State Bank of Pakistan (SBP) Tariq Bajwa said...Read More
 

Shaping a brighter future for Pakistan

Dawn News (Mar 18, 2019)
In a new report, the World Bank takes a deep look at what Pakistan needs to do to have a better future for its people by 2047, a full ¬century after the country’s birth. In this series, the authors provide a brief summary of key recommendations of the report. IN 28 years, Pakistan will turn 100 years old. The children born this year will be adults then. I wonder what they will see when they look around...Read More
 

Spend less on defence and more on human development, World Bank tells Pakistan

The SAMAA by Farooq Baloch and Shakeel Ahmad (Mar 18, 2019)
If Pakistan wants to be a strong upper middle-income country by the time it turns 100, it has to reduce its population growth rate by half and more than double its spending on education and healthcare, World Bank said in its latest policy report ‘Pakistan@100: Shaping The Future’. The global lender has expressed its concerns on the ever increasing defence expenditures in the South Asia region amid recent tensions between India and Pakistan...Read More
 

GDP expected to grow at an average of 5.4pc in next five years

The Pakistan Today (Mar 17, 2019)
ISLAMABAD: The Gross Domestic Product (GDP) is expected to grow at an average of 5.4 per cent during the next five years, with highest growth of 6.7 per cent to be witnessed in fiscal year 2022-23, according to preliminary figures of 12th Five Year Plan (2018-23). According to the provisional figures of the draft of the 12th Five Year Plan, the economy would grow at four per cent during the current fiscal year (2018-19), followed by 4.6 per cent growth rate in FY 2019-20, 5.5... Read More
 

Pakistan closer to reaching accord with IMF: Asad

Dawn News (Mar 17, 2019)
TAXILA: Federal Finance Minister Asad Umar has hinted that bailout package talks with the International Monetary Fund (IMF) are in their final stages and the government will have further negotiations with the newly appointed IMF mission before reaching an agreement. “Pakistan has come closer to reaching an agreement with the IMF as the differences between Pakistan and the IMF over a possible...Read More
 

Trump’s trade war cost US economy $7.8bn in 2018: Study

The Pakistan Today (Mar 16, 2019)
WASHINGTON: President Donald Trump’s trade battles cost the US economy $7.8 billion in lost gross domestic product in 2018, a study by a team of economists at leading American universities published this week showed. Authors of the paper said they analyzed the short-run impact of Trump’s actions and found that imports from targeted countries declined 31.5pc while targeted US exports fell by 11pc. They also found that annual consumer and producer losses from higher costs of...Read More
 

Pakistan seeks $500 million loan from ADB

The Express Tribune (Mar 16, 2019)
ISLAMABAD: Pakistan has requested the Asian Development Bank (ADB) to approve a $500 million loan in budgetary support before June this year, as it faces difficulties in retaining foreign exchange reserves because of mounting external financing needs. The request has been made to Werner Liepach, director general for Central and West Asia Department of the ADB, who is on a visit to Pakistan, a top official of the Finance Ministry told The Express Tribune....Read More
 

No new mega projects in next year’s PSDP

The Express Tribune (Mar 15, 2019)
ISLAMABAD: A parliamentary body on Thursday took up the issue of ‘insignificant’ research and development funds of Rs1.4 billion for the entire year out of a total budget of Rs6 trillion. “There should be a special meeting just to cry over the poor state of funding for research and development,” said Senate Standing Committee on Science and Technology Senator Mushtaq Ahmed. The committee met to discuss the budgetary allocations for the ministry and the utilisation of funds...Read More
 

ADB reaffirms support to Pakistan’s development

The Pakistan Today (Mar 15, 2019)
ISLAMABAD: Finance Minister Asad Umar said on Friday that the government is keen to devise an innovative financing model, develop capital markets and mobilise private sector investment in infrastructure and social sectors. “These initiatives will not only provide fiscal space to the government but will also be helpful to boost economic activities in the country,” said the finance minister during a meeting with a high-level delegation of the Asian Development Bank (ADB)...Read More
 

IMF endorses Sri Lankan government budget

The WSW (Mar 14, 2019)
The second reading of the 2019 government budget presented by Finance Minister Mangala Samaraweera was passed by the Sri Lankan parliament on Tuesday. The final vote on the United National Party (UNP)-led government’s measures, which are in line with International Monetary Fund (IMF) demands, will be taken on April 5, after further debate. The IMF mission chief for Sri Lanka, Manuela Goretti, told the Dailyft on Tuesday that “a prudent policy mix is necessary”,...Read More
 

US aid to Pakistan for 2020 to be dismal

The Hindustan Times (Mar 14, 2019)
The Trump administration has cut by half its budgetary request for a fund that the US uses to compensate coalition partners for military and logistical support, which could mean Pakistan, the principal beneficiary of the allocation, will get next to nothing from it. The fiscal year 2020 budget request for Coalition Support Fund (CSF) of $450 million reflects a $450 million (50%) decrease from the FY 2019 enacted level of $900 mn, the US department of defence said in a summary of its budgetary...Read More
 

Pakistan’s resources can make it an economic power

The Express Tribune (Mar 13, 2019)
ISLAMABAD: A Ghanaian diplomat has said that Pakistan has matchless natural and human resources which could soon turn the country into a global economic power. This was stated by the visiting Ghanaian Diplomat Muhammad Karandi while speaking to Ghana’s Honourary Consul General Shahid Rasheed Butt on Tuesday. Karandi, who works at the Ghanaian embassy in Tehran but is visiting Islamabad, said that Pakistan has all...Read More
 

Pentagon rolls out $718 billion budget for 2020

The Economic Times (Mar 13, 2019)
WASHINGTON: The US Department of Defence has rolled out its $718 billion budget request for the fiscal 2020, with a substantial hike in war funding aimed at circumventing a budget gap. "This strategy-driven budget makes necessary investments in next-generation technology, space, missiles and cyber capabilities," Acting Defence Secretary Patrick Shanahan said in a statement on Tuesday. "The operations and capabilities supported by this budget will...Read More
 

Pakistan for promoting regional economic integration

The Business Times (Mar 12, 2019)
ISLAMABAD: Finance Minister, Asad Umar said Tuesday that Pakistan strongly believed in promoting regional economic integration for development of the whole region. Talking to a Turkmenistan delegation, led by Minister of Foreign Affairs, Mr. Rashid Meredov, the Finance Minister said that it was the vision of Prime Minister of Pakistan to develop regional economic integration, which he said was highly essential for the social and economic prosperity of the region...Read More
 

Punjab Assembly begins pre-budget debate

The News (Mar 12, 2019)
LAHORE: The Punjab Assembly began pre-budget debate on Monday as Finance Minister Hashim Jawan Bakht reiterated his government’s resolve to address the problems and sense of deprivation among dwellers of southern Punjab. He asked the assembly members to present their suggestions for improving the upcoming budget for fiscal year 2019-20. Opposition leader in Punjab Assembly, Hamza Shahbaz, complained of victimisation of Pakistan Muslim League...Read More
 

Mini-budget: still a work in progress

Dawn News (Mar 11, 2019)
The National Assembly passed the second mini-budget of the current fiscal year last week with a rare 45-day gap following its presentation. Instead of considering ecommendations made by the Senate, Finance Minister Asad Umar rushed through many amendments to the Jan 23 document. The Senate Standing Committee on Finance, Revenue and Economic Affairs had proposed about 55 amendments to the Finance Supplementary...Read More
 

Trump invites a new fight with Democrats over 2020 budget, seeks $8.6 billion for wall

The CNN (Mar 11, 2019)
Washington (CNN)The Trump administration is headed for a budget clash with Congress, with calls for deep domestic spending cuts that lawmakers are likely to ignore as the nation's debt reaches record levels. On Monday, President Donald Trump is set to deliver his budget roadmap with a promise to balance the budget in 15 years, marking the first time he'll unveil a spending proposal under a divided government with Speaker Nancy Pelosi at the helm of a Democratic-controlled House, and he is...Read More
 

China’s funding for science and research to reach 2.5 percent of GDP in 2019

The South China Morning Post (Mar 10, 2019)
China’s spending on science and research funding is set to continue rising to 2.5 per cent of its GDP this year, as the nation seeks to catch up on the technology front amid an economic downturn. The funding target was revealed in a meeting of the country’s peak advisory body, the Chinese People’s Political Consultative Conference, on Sunday. It means China will reach its budget goal for research and development a year ahead of schedule, though scientists say they still do not get...Read More
 

Pakistan set to receive US$2billion (Dh7.35 billion) deposit from the UAE

The Gulf News (Mar 10, 2019)
Dubai: The United Arab Emirates is expected to deposit US$2 billion (Dh7.35 billion) in the State Bank of Pakistan (SBP) as foreign currency reserves in a few days to help Islamabad meet international payment pressures. “US$2 billion in deposits are expected to be received by the SBP within days,” a spokesperson of the SBP told media in Pakistan. Abu Dhabi had released the first tranche...Read More
 

Murad says provinces face financial crises due to poor state of national economy

Dawn News (Mar 09, 2019)
JAMSHORO: Sindh Chief Min-is¬ter Syed Murad Ali Shah has said that provinces face severe crisis due to poor state of national economy as federal government has thus far failed miserably to improve conditions. The government should work harder to bolster economy and scale up tax collection instead of launching scathing attacks on others and issuing boastful statements, said Mr Shah while talking to media persons after graduation ceremony at the US-Pakistan Centre for...Read More
 

FY 2018-19: Pakistan post’s deficit projected to cross Rs 12 billion

The Business Recorder (Mar 09, 2019)
Amid deteriorating postal services owing to lack of innovation to compete with private couriers and electronic alternatives, Pakistan Post's deficit is projected to cross Rs 12 billion by the end of current fiscal year 2018-19. Official sources revealed to Business Recorder that the government has set a revenue target of around Rs 15 billion for Pakistan Postal department for 2018-19 after it missed revenue target of Rs 13 billion for 2017-18...Read More
 

FY 2017-18: Government regularize Rs 354.2 billion excess expenditures

The Business Recorder (Mar 08, 2019)
The federal government has regularized excess expenditure of Rs 354.2 billion during financial year 2017-18 and supplementary grants of over Rs 39 billion for the financial year 2018-19, official sources told Business Recorder. According to the Finance Ministry, Article 84 of the Constitution of Pakistan, 1973, lays down the procedure for supplementary grants and excess grants. It provides that the federal government shall have power to authorize expenditure in case the amount...Read More
 
 
Budget Study Centre   Issue 35 March 07, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Finance bill ushers in sweeping ‘incentives’ for banks, industry and green field investors

The Dawn (Mar 07, 2019)
ISLAMABAD: The PTI government in its second Finance Supplementary Bill, 2019 has agreed to introduce 10 major amendments to the Finance Act 2019 with most related to boosting investment. Of all the recommendations, five are related to income tax measures, one caters to sales tax, two to customs and one for federal excise duty. These amendments will come into effect retrospectively from July 1. However, the sales tax, customs and federal excise duty will come ... Read More
 

Second mini-budget gets NA nod amid protest

The Express Tribune (Mar 07, 2019)
The National Assembly on Wednesday approved the Pakistan Tehreek-e-Insaf (PTI) government’s second mini-budget amid opposition’s uproar and boycott, allowing non-filers of the income tax returns to purchase luxury cars while also extending the super tax indefinitely. Although Finance Minister Asad Umar described his second mini-budget in five months as a reform package that will also boost industries and trade, he has taken certain... Read More
 

‘Biotechnology can transform Pakistan’s economy’

Express Tribune (Mar 06, 2019)
FAISALABAD: A close and productive working relationship between the Faisalabad Chamber of Commerce and Industry (FCCI), National Textile University (NTU) and National Institute for Biotechnology and Genetics Engineering (NIBGE) is imperative to reorganise the industrial sector on modern scientific lines. Addressing the FCCI Standing Committee on Technical Training and Industry-Academia Linkages, NIBGE Director Dr Shahid Mansoor...Read More
 

Govt approves Rs8b addl budget for PAF, others

The Pakistan Observer(Mar 06, 2019)
Islamabad: The government on Tuesday approved nearly Rs8 billion supplementary budget to meet additional needs of the Pakistan Air Force and civilian armed forces, seeking financial assessment of further defence needs of the country in wake of tensions with India. The Economic Coordination Committee of the cabinet approved the additional budget for the PAF and management of western borders by civil-armed forces, said the Finance Ministry officials. It has...Read More
 

Govt now focusing on promotion of NFIS targets three million new jobs, $5.5bn additional exports by 2023

The Pakistan Today (Mar 05, 2019)
ISLAMABAD: The government has set a target of creating at least three million new jobs and additional exports of $5.5 billion by 2023. National Financial Inclusion Strategy (NFIS), according to the Ministry of Finance, will enhance the usage of digital payments to 65 million active digital transaction accounts, increase deposit-to-GDP ratio to 55pc, promote financing to 700,000 small and medium enterprises, increase agricultural finance disbursements to Rs.1.8 trillion, serve...Read More
 

Govt now focusing on promotion of economic growth, PM Khan tells business leaders

Dawn (Mar 05, 2019)
Prime Minister Imran Khan on Monday said that after overcoming the "most difficult challenge" of stabilising the economy during the first six months of the Pakistan Tehreek-i-Insaf (PTI)-led government, the focus is now on the promotion of economic growth in the country. In a meeting with a delegation of business community leaders and representatives, the premier said that with trade and investment being an important pillar of the government's foreign policy, there was...Read More
 

GDP and foreign aid shrinking, Pakistan economy crosses a line of control

The Business Standard (Mar 04, 2019)
The recent flare-up with India has possibly lengthened the odds against Pakistan to get the foreign aid that it needs immediately. The choices are, principally, two: From China or the International Monetary Fund (IMF). Of the total foreign loans Pakistan raised in 2017-18, more than 40 per cent came from these two sources. Islamabad also raises commercial loans of approximately the same amount from abroad. Foreign loans from both streams account for 30 per cent of the country’s GDP...Read More
 

Sri Lanka Finance Minister burning midnight oil to finalize budget 2019

The Colombo Page (Mar 04, 2019)
Colombo: Sri Lanka's Minister of Finance Mangala Samaraweera is preparing to present the budget for 2019 in parliament on Tuesday, March 5. Seen here is the Minister finalizing the budget for the year with the Secretary to the Treasury Dr. R.H.S. Samaratunga at his private residence in Gorakana, Panadura. "Finalizing the Budget 2019; Enterprise Sri Lanka, Empowering the people, nurturing the poor. Thanks to ST, Mano Tittawella, Deshal de Mel for burning the ...Read More
 

AN IMF deal

The News (Mar 03, 2019)
There seem to be positive signs on the IMF front for Pakistan, now with Fitch Solutions too saying that it expects the country to reach a bailout agreement soon. However, all is not hunky dory, as Pakistan is expected to be pushed to pursue greater austerity measures. The expected $12 billion bailout deal will be twice the last bailout agreement, and is likely to come with severer conditions than before as the IMF will attempt to ensure that Pakistan does not return to it with a... Read More
 

Universities face financial emergency because of budget cuts

The News (Mar 03, 2019)
Islamabad : Vice Chancellors and Rectors of public sector universities say that they face a financial emergency because of budget cuts in the past three years. The issue was discussed at a two-day meeting held at the Higher Education Commission (HEC) where the university heads met to explore solutions to the financial crisis. Dr. Masoom Yasinzai, Chairman Vice Chancellors Committee, said that the recurring budget of the higher education sector is facing a ...Read More
 

Lower House oks record ¥101 trillion budget for fiscal 2019

The Japan Times (Mar 02, 2019)
The Lower House approved a record ¥101.46 trillion ($913 billion) budget for fiscal 2019 early Saturday, ensuring its enactment before the new fiscal year begins on April 1. Prime Minister Shinzo Abe’s ruling coalition pushed the spending plan through the House of Representatives past midnight, after opposition lawmakers halted deliberations the previous day by submitting a no-confidence motion against labor minister Takumi Nemoto over his handling of a faulty ...Read More
 

Soaring budget deficit getting out of economic managers’ control

The Pakistan Observer (Mar 02, 2019)
ISLAMABAD - The economic managers of the country might struggle to control the soaring budget deficit due to the massive shortfall in tax collection during eight months of the current fiscal year. The Federal Board of Revenue (FBR) has faced massive shortfall of Rs230 billion in tax collection during July to February period of the year 2018-19 despite introducing mini budgets. The FBR had collected Rs2335 billion during eight months (July to February) of the ongoing ....Read More
 

Border line: State of Pakistan economy

The Economic Times (Mar 01, 2019)
Pakistan's economy faces multiple challenges ranging from high inflation and a sharply deteriorating currency to foreign exchange reserves for about a few months of imports. Government’s finances are also in shambles with high fiscal deficit. Any escalation in hostilities will drag it down further...Read More
 

More Steps in budget for ease of doing business

The Express Tribune (Feb 28, 2019)
ISLAMABAD: Finance Minister Asad Umar said on Thursday that the government had taken steps for the ease of doing business and was facilitating both domestic and foreign investors by offering various incentives including rationalisation of taxes. Talking to a visiting Singaporean business delegation, Umar revealed that more such steps were envisaged in the new budget for the upcoming fiscal year 2019-20. He told the delegation...Read More
 

India’s defence budget five times larger than Pakistan’s

The Times of India (Feb 28, 2019)
NEW DELHI: In 2018, India's defence budget stood at $58bn, five times larger than Pakistan’s one. Also, Indian Army boasts of 12 lakh active troops, while Pakistan has mere 5.6 lakh personnel in its army. As tension between India and Pakistan escalates after strike by Indian Airforce at Jaish terror camps in Pakistan following a suicide bombing in Kashmir that killed 44 Indian security personnel. Here’s quick assessment of the two nation’s military might...Read More
 

Budget deficit hits six-year high says QWP leader

The News (Feb 27, 2019)
PESHAWAR: Qaumi Watan Party (QWP) leader and former senior minister Sikandar Sherpao on Tuesday criticised the Pakistan Tehreek-e-Insaf (PTI) government for its flawed economic policies, saying that budget deficit had hit a six-year high. According to a press release issued from Watan Kor here, he was talking to a delegation of the QWP workers from the Buner district. Sikandar Sherpao said the budget deficit had reached Rs1.03 trillion in the first half of...Read More
 

Why is the economy not responding?

The Pakistan Today (Feb 27, 2019)
Nearly eight months down the road one is beginning to wonder that while the government is well meaning, its heart and mind are in the right place, its economic team is not only experienced and has has reasonably good credentials, but also seems correct in its policy direction, so why then is the Pak economy not responding. Could it be that the policymakers say one thing while they do another or is it that they are failing in combining to deliver the promised ‘ ...Read More
 

Debate begins in NA on amendments to mini-budget

Dawn News (Feb 26, 2019)
ISLAMABAD: The proposed 55 amendments in the Finance Supplementary (Second Amendment) Bill 2019 were laid for discussion by state minister for parliamentary affairs on behalf of Finance Minister Asad Umar in the National Assembly on Monday. Minister of State for Parliamentary Affairs Ali Mohammad Khan on Monday laid the proposed amendment report in the NA amid the opposition’s protest over the arrest of Sindh assembly’s speaker...Read More
 

Taiwan concerns mean China defense budget likely to defy slowing economy

The Reuters (Feb 26, 2019)
BEIJING (Reuters) - A slowing economy is unlikely to crimp China’s 2019 defense budget rise, as Beijing earmarks more spending for modernization and big-ticket items like stealth jets, and focuses on Taiwan after a stern new year’s speech from President Xi Jinping. The defense spending figure is closely watched worldwide for clues to China’s strategic intentions as it develops new military capabilities, including aircraft carriers and anti-satellite missiles...Read More
 

Sri Lanka may have to push IMF budget targets to 2020 or beyond

The Economy Next (Feb 25, 2019)
ECONOMYNEXT- Sri Lanka may have to renegotiate a more realistic budget deficit target for 2019 and beyond under a 1.5 billion dollar balance of payments relief program with the International Monetary Fund, an economist said. "The consolidation is slower than the IMF forecast," Standard Chartered Bank South Asia Economist Saurav Anand said at a media briefing. Sri Lanka was expected to reach a budget deficit of 3.6 percent in 2019 under the ...Read More
 

The US can solve its trade problems while relaunching the world economy

CNBC News (Feb 25, 2019)
Pursuing one of American core national interests, the U.S. administration lost a multilateral dimension of its forceful quest to balance trade accounts. Washington's unassailable trade case against China, the European Union, its North American neighbors and Japan is fundamentally an issue of world economy. Reducing that case to bilateral quarrels robs America of a powerful negotiating advantage, and of the high moral ground of a world leader. Buying more than half-a-trillion...Read More
 

Finance Ministry fince-tunes populist Budget 2019

The Sunday Times (Feb 24, 2019)
The Finance Ministry is now fine-tuning the upcoming budget 2019, the first by the United National Front (UNF) Government following the breakaway of the coalition with the SLFP, to be presented in parliament on March 5 amidst falling revenue, mounting public debt and severe balance of payments difficulties. Finance Minister Mangala Samaraweera told a forum organised by American Chamber of Commerce this week that the upcoming budget 2019 will be “important and...Read More
 

Ballooning budget deficit contradicts PM’s claims

The Express Tribune (Feb 24, 2019)
LAHORE: Pakistan Muslim League-Nawaz (PML-N) leader and former finance minister Miftah Ismail has said the budget deficit has ballooned to Rs1,030 billion during the first six months of the Pakistan Tehreek-e-Insaf (PTI) government’s tenure. “This is the highest amount ever witnessed during the first six months of any government in the country’s 71-year history,” said the former finance minister in a statement on Saturday...Read More
 

Pakistan’s new Five Year Plan draft eyes 5.4% GDP growth rate

The Gulf Times (Feb 23, 2019)
The Planning Commission (PC) of Pakistan has shared the draft of highly ambitious 12th Five Year Plan. However, the leading economists have termed it ‘redundant framework’ in case the PTI-led government approaches the IMF for a fresh bailout package. The commission in its envisaged macroeconomic framework has set an average GDP growth target of 5.4%, jacking up allocation of development outlay to Rs11.7tn including Rs6.2tn at federal level in which Rs1tn will be financed...Read More
 

Budget 2019 likely to boost India’s education sector

The Digital Learning (Feb 23, 2019)
India’s Annual Budget decides the way ahead for different sectors in the country. In this year’s Budget, the Government has emphasised on education along with other sectors. How the Budget 2019-20 will pave way for improvement in education sector, observes Akhil Shahani, Managing Director, The Shahani Group, for Elets News Network (ENN). The acting Finance Minister, Piyush Goyal said that India is among the youngest nations in the world and the Government is...Read More
 

Mohammad Bin Salman looks east but worries about the west

The Haartez (Feb 22, 2019)
For the pigeon farmers of Islamabad it was a celebration. The authorities bought 3,500 pigeons from them for the birds to be released at this week’s reception ceremony for Saudi Crown Prince Mohammed bin Salman. Some 750 rooms in the capital’s grand hotels were reserved for the entourage, and it seems all the BMWs in the city were enlisted to drive the guests around. Pakistan’s highest civilian award was polished well before it was awarded to Mohammed, a...Read More
 

Pakistan to be among 5 biggest world economies by century end

The News (Feb 22, 2019)
ISLAMABAD: Federal Minister for Finance Asad Umar said that Pakistan would be among five biggest economies of the world by the end of this century. He said that India’s decision to slap 200 percent duty on Pakistani products and withdrawal of Most Favored Nations (MFN) status was tantamount to harm New Delhi’s economy more instead of causing any loss to Pakistan. He also said that the differences with the IMF were narrowing down and discussions at technical levels were continued ...Read More
 
 
Budget Study Centre   Issue 34 Feb 21, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Pakistan, IMF likely to conclude talks by April

The Pakistan Today (Feb 21, 2019)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are likely to conclude talks with regard to the bailout package by April 2019. According to sources, the ongoing talks would be concluded by the mid of April before the spring meetings of the World Bank Group and the IMF, scheduled to be held in Washington from April 12-14, 2019. On the sidelines of the said meetings, IMF officials and Pakistan’s Finance Minister Asad Umar would finalize the programme, which was... Read More
 

Budget deficit hits six-year high at Rs 1.03tr

The Express Tribune (Feb 21, 2019)
ISLAMABAD: The budget deficit hit a six-year high at Rs1.03 trillion, or 2.7% of the total size of national economy, in first half of the current fiscal year due to a double-digit growth in defence and debt spending, and negligible improvement in revenues. The budget deficit in the first half of FY19, when the Pakistan Tehreek-e-Insaf (PTI) came to power, was worse than the deficits recorded in the July-December period of previous years, when Pakistan Muslim League-Nawaz... Read More
 

PM directs FBR to tight noose around big tax dodgers

Express Tribune (Feb 20, 2019)
ISLAMABAD: Prime Minister Imran Khan on Tuesday ordered the Federal Board of Revenue (FBR) to flex its muscles against big tax evaders and make them cough nearly Rs200 billion in the next four months amid his annoyance over the poor show of the tax machinery. The PM also directed to present a new Whistleblowers Bill next month to reward people who help nab corrupt officials and politicians...Read More
 

Business community presents joint proposals on budget 2019-20

The Pakistan Today (Feb 20, 2019)
LAHORE: Lahore Chamber of Commerce and Industry President Almas Hyder, on behalf of the business community, presented a set of joint proposals regarding Federal Budget 2019-20 to Finance Minister Asad Umar. LCCI President Almas Hyder was heading a delegation comprising chamber presidents of Khanewal, Kohat, Gujrat, Azad Jammu Kashmir, Gujranwala, Mohmand Agency and Haripur, and representatives of Federation of Pakistan Chamber of...Read More
 

Pakistan to receive $21 billion investment from Saudi Arabia over next five years

The Pakistan Today (Feb 19, 2019)
ISLAMABAD: The Petroleum Division on Monday disclosed Saudi Arabia has committed to invest around $21 billion in Pakistan over a duration of the next two to five years. As per details shared by the Petroleum Division, Saudi Arabia is set to invest around $7 billion in the short-term, utilizing $4 billion to purchase two LNG-fired power plants established by the previous administration in Punjab which will be privatized via open bidding, reports an English daily...Read More
 

Market watch: Profit-taking drags down KSE-100 40,000 points

The Express Tribune (Feb 19, 2019)
KARACHI: The stock market lost ground for the fifth successive session on Tuesday as institutions resorted to profit-taking, which pushed benchmark index below the 40,000-point mark. After staying positive briefly, the KSE-100 index kicked off a negative run due to dismal data of foreign direct investment (FDI), which stood at just $1.45 billion for July-January FY19, down 17% on a year-on-year basis, and concern over deteriorating Pakistan-India ties...Read More
 

Rs 319.3bn released under PSDP 2018-19

The Pakistan Today (Feb 18, 2019)
ISLAMABAD: The federal government has released Rs319.3 billion against the total allocation of Rs675 billion under its Public Sector Development Programme (PSDP) 2018-19 for various ongoing and new schemes. The released funds include Rs136.9 billion for federal ministries, Rs137.231 billion for corporations, and Rs25.963 billion for special areas, according to latest data released by Ministry of Planning, Development and Reform. Out of these allocations, the...Read More
 

Saudi minister calls for increasing Pak-KSA bilateral trade

The Pakistan Today (Feb 18, 2019)
ISLAMABAD: Saudi Arabian Minister for Commerce and Investment Majid Al-Qassabi on Monday said that Saudi Arabia and Pakistan could jointly deal with the challenges faced by both the countries. “Pak-Saudi relations are moving in a new and positive direction and strategic relations between both the brotherly countries are of paramount importance to the region,” Majid Al-Qassabi said while addressing the Pak-Saudi Business Conference in Islamabad along with ...Read More
 

Vision 2030of Saudi Arabia opportunities for Pakistan

Daily Times (Feb 17, 2019)
Last decade observed miracle changes in economic and governance systems in Kingdom of Saudi Arabia (KSA). For the first time KSA appointed a young and dynamic leader Muhammad Bin Salman as the crown prince. The Crown Prince, is member of the next generation in the royal family who is trying to revolutionize the governance and economic system of KSA. He believes in opening up of the society, culture of entertainment and sports but with strict Islamic values, morals... Read More
 

Saudi refinery to reduce oil import bill by $1.2b: petroleum minister

The Express Tribune (Feb 16, 2019)
ISLAMABAD: Saudi Arabia has no concerns about the security situation in Balochistan where it plans to invest billions of dollars in refinery, minerals and renewable sectors, said Petroleum Minister Ghulam Sarwar Khan. “The security situation in Pakistan has improved a lot and therefore different countries are interested to make multibillion dollars investment. Saudi Arabia is going to invest over $10 billion in setting up an oil refinery and...Read More
 

Rupee strengthens against dollar

The Express Tribune (Feb 15, 2019)
KARACHI: The rupee strengthened against the dollar at Rs138.65/Rs139.15 in the inter-bank market on Thursday compared with Wednesday’s close of Rs138.85/Rs139.35, according to forex.pk. Last year in November, the rupee fell to an all-time low at Rs144 against the dollar in intra-day trading before recovering to Rs139.05 in the sixth round of devaluation since December 2017. Cumulatively, the rupee has lost 31.8% of its value in the last 13 ...Read More
 

Debt servicing estimated to cross Rs2trln in FY 2019

The News (Feb 15, 2019)
ISLAMABAD: Debt servicing on both local and foreign loans is estimated to surpass two trillion rupees during the current fiscal year of 2018/19 compared with the annual target as monetary tightening was dubbed as one of the reasons of rise in cost of borrowing, sources said on Thursday. The sources said the debt servicing, which has already become the largest ticket item on expenditures side, is all set to cross the two trillion rupees mark during the current ....Read More
 

Budget bill, Chinese intransigence and retail sales numbers hit stocks Thursday

CDN.com (Feb 14, 2019)
WASHINGTON. As we noted in Wednesday’s article, the market has been a lot of fun for the bulls lately. But we noted the party couldn’t go on forever, as much as the bulls might wish it so. Today, Thursday, we’re getting at least some payback. Futures indicated another great day for the bulls was at hand. But once the market actually opened, stocks dropped like a rock. The government’s pending budget bill finale and Chinese intransigence in bilateral trade negotiations are blamed...Read More
 

Senate body irks over cut in MoIT development budget

Business Recorder (Feb 14, 2019)
ISLAMABAD: Senate Standing Committee on Information Technology and Telecommunication on Thursday expressed displeasure over the cut in the ministry’s development budget and stressed to restore the funds to its original allocation. Senator Robina Khalid chaired the committee, which met here at the Parliament House. The Senate body meeting was attended by Senator Abdul Rehman Malik, Senator Ghous Muhammad Khan Niazi, Senator Tahir...Read More
 

US posts $14 billion budget deficit as revenues sag after Trump tax cuts

The.cnbc.com (Feb 13, 2019)
The U.S. federal government ran a $14 billion budget deficit in December as revenues sagged following last year's tax cuts even as the economy appeared strong, Treasury Department data showed on Wednesday. Analysts polled by Reuters had expected an $11 billion deficit for the month and the gap was the latest sign of deterioration in the government's fiscal position. A strong U.S. job market has appeared to power economic growth this year, an...Read More
 

Pakistan expects 8 investment deals during Saudi prince’s visit

The.cnbc.com (Feb 13, 2019)
ISLAMABAD, Feb 13 (Reuters) - Saudi Arabia will announce eight investment agreements during a visit to Pakistan by Crown Prince Mohammad Bin Salman, officials said on Wednesday, a trip that is expected to set the seal on growing closeness between the historic allies. The investment is welcome in Pakistan, which is facing sharply slowing economic growth this year, a ballooning budget deficit and foreign currency reserves dwindling to less than $8 billion or two months' of...Read More
 

Moody’s assigns negative outlook to Pakistani banks

The Express Tribune (Feb 12, 2019)
KARACHI: Moody’s, one of the top three global rating agencies, has assigned a ‘negative’ outlook to Pakistan-based banks due to economic slowdown and the banks’ higher investment in sovereign securities’ papers of the government. “Our outlook for Pakistan’s banking system is negative,” Moody’s Investors Service said in a research publication on Monday. “A slowing economy and high exposure to sovereign debt drive our negative ...Read More
 

Pak-IMF differences still exist

The News (Feb 12, 2019)
ISLAMABAD: Differences still persist over adjustment programme between Pakistan and the IMF as Islamabad wants to adopt staggered approach on raising discount and energy rates and taking additional revenue measures to curtail the budget deficit but the Fund insists upon taking major steps through prior actions. Top official sources confirmed to The News in background discussions that IMF wanted frontloaded programme where the PTI-led government...Read More
 

Income boost for farmers in Interim Budget: Who will be the beneficiaries & how much will it cost the exchequer

The News (Feb 11, 2019)
Income support for farmers announced in the Interim Budget and opposition Congress’ promise of a minimum income guarantee to the poor if voted to power has revived discussions over providing Indians with Universal Basic Income. Since neither the ruling NDA nor the Congress has proposed a truly universal scheme, who will be the beneficiaries and how much will it cost the exchequer? ...Read More
 

What IMF expects from Pakistan

The News (Feb 11, 2019)
ISLAMABAD: Pakistan and the International Monetary Fund have almost agreed on a programme for a period of three years and agreement in this regard is likely to be inked in June before or soon after budget 2019-20, The News reliably learnt on Sunday. Further details of the agreement finalised will not be made public till the agreement is signed. IMF Managing Director Christine Lagarde in a meeting with Prime Minister Imran Khan promised to support Pakistan’s...Read More
 

Saudi Arabia’s oil investments could be lifeline for Pakistan’s economy

The Gulf News (Feb 10, 2019)
A record investment package being prepared by Saudi Arabia for Pakistan will likely provide welcome relief for its cash-strapped Muslim ally, while also addressing regional geopolitical challenges, analysts say. At the heart of the investment is a reported $10 billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor, which lies not far from the Indo-Iranian...Read More
 

IMF assures Pakistan of support in shoring up economy

The Express Tribune (Feb 10, 2019)
International Monetary Fund (IMF) head Christine Lagarde on Sunday said the organisation was ready to support Pakistan in its efforts to shore up the crippling economy. She said this in a statement issued after her meeting with Prime Minister Imran Khan on the sidelines of 7th World Government Summit in Dubai...Read More
 

Pakistan ranked 131st freest economy, receives freedom score of 55: Report

The Pakistan Today (Feb 09, 2019)
LAHORE: A 2019 Index of Economic Freedom report has given Pakistan an economic freedom score of 55.6, up by 0.5 points and ranking it as the 131st freest in the index released this year. According to the report, the country’s overall score has risen by 0.6 points, with increased scores for judicial effectiveness and property rights outmatching declines in monetary freedom and fiscal health. It added Pakistan was ranked 32nd amongst 43 countries in the Asia-Pacific region and its overall...Read More
 

Only Rs 4.5b Haj subsidy withdrawn from 230b to other sectors

The News (Feb 09, 2019)
ISLAMABAD: The federal government is paying almost Rs230 billion annual subsidy to private and public sectors but has withdrawn the financial assistance of Rs4.5 billion for religious ritual of Haj only. Besides, the government is paying another Rs55 billion subsidies and grants to Pakistan Railways, wheat subsidy to Gilgit-Baltistan and to other sectors. In total, the government is paying Rs 230 billion subsidy to different government departments/institutions as well as private ...Read More
 

‘Saudi investment highlights trust in Pakistan’s economy’

The Express Tribune (Feb 08, 2019)
ISLAMABAD: Saudi investment in different sectors depicts the trust of Saudi Arabia’s leadership and investors in Pakistan’s economy, said Senate Chairman Muhammad Sadiq Sanjrani. During a meeting with Saudi Arabia Ambassador Nawaf bin Said Al-Malki on Thursday, he pointed out that trade, economic and investment ties would help lift bilateral cooperation to new heights in the days to come. Sanjrani expressed hope that the upcoming visit...Read More
 

Economy in shambles but Pakistan wants to increase its defence budget

The ZEE NEWS (Feb 08, 2019)
Pakistan's economy is in a shambolic state but the country is looking at ways to increase its defence budget instead of reducing it to address more pressing problems. Speaking to members of the local press, the country's information minister Fawad Chaudhry said that Pakistan cannot afford to make cuts in its defence budget because it was already on the lower side when compared to South Asian neighbours. "The country’s defence budget is already low as ...Read More
 
 
 
Budget Study Centre   Issue 33 Feb 07, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

NFC forms six panels to sort out thorny issues

The Express Tribune (Feb 07, 2019)
ISLAMABAD: The National Finance Commission on Wednesday set up six working groups to thrash out the thorny issues amid Sindh’s objections to the constitutional and legal status of the Commission and the 6th population census. Sindh Chief Minister Syed Murad Ali Shah also sought a cut in the vertical share of the Centre to the extent of fiscal resources that the federal government was earlier spending on erstwhile Federally Administered Tribal Areas (Fata) which... Read More
 

Budget 2019-20: A Budget for a ‘new India’

The Financial Express (Feb 07, 2019)
The Interim Budget of 2019-20, the last one of the government before the Lok Sabha polls, was always headed towards being populist in nature. The interim finance minister, Piyush Goyal, started off on a very positive note, and proudly stated that the current government has prepared the foundation for sustainable growth, progress and better quality of life for all the Indians. In his Budget speech, he also highlighted some of the key measures taken by the ... Read More
 

70 pc of Pakistan’s economy is informal, which is of high concern: PBIF

The Nation (Feb 06, 2019)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday said that as per International Labour Organization, the informal economy is accounted for more than 70 percent of the employment in main jobs outside agriculture sector. The informal economy has observed speedy...Read More
 

The new budget and after

The Pakistan Today (Feb 06, 2019)
Finally the state minister for revenue – whatever that title means – let slip what everybody in the government had been denying all this time. It turns out that, all things considered, the unique approach of side-stepping – or at least trying to side step – a structural adjustment program with the IMF in favour of bailouts from friendly countries hasn’t quite panned out the way PTI would have hoped. Inflation is already above seven percent, growth is supposed to trickle down to less...Read More
 

ICCI calls for single tax regime in next budget

The Pakistan Observer (Feb 05, 2019)
Islamabad: The Islamabad Chamber of Commerce & Industry (ICCI) has called upon the government to consider introducing single tax regime in the country that would help reduce taxpayers’ problems. The President of ICCI, Ahmed Hassan Moughal, said at present a businessman have to cope with 47 taxes including sales tax, income tax, withholding taxes, customs & excise duties, EOBI tax, Workers Profit Participation Fund and Workers Welfare...Read More
 

Non-utilization of allocated budget

The Pakistan Observer (Feb 05, 2019)
This refers to news published in newspapers that departments of Government of Sindh have not completely utilized their funds allocated in the budget-2018/19 which raises questions that why budget is not utilized albeit budget is allocated to each department by Finance Department on the request made by departments based on their anticipated expenditure. It was reported that approximately only 8% or may be little more utilization of allocated budget is made so far...Read More
 

Aurn Jaitley indicates won’t be back in India to reply to Budget debate

The Economic Times (Feb 03, 2019)
Union Minster Arun Jaitley Sunday said his medical treatment at a US hospital is all over but hinted that he may not return to India in time to reply to the debate on Interim Budget in Parliament. Jaitley, 66, had missed presenting the sixth and final budget of the Narendra Modi government's present term as he had to fly to the US due to ill health. In his absence, the charge of the finance ministry was given to Railway Minister Piyush Goyal, who on February 1 ...Read More
 

Rating agency Moody’s terms Pakistan mini-budget positive for export sector

The xinhuanet.com (Feb 03, 2019)
ISLAMABAD, Feb. 3 (Xinhua) -- A U.S. rating agency Moody termed the Pakistani government's recently presented mini-budget as "positive" for manufacturing and export-oriented sectors, local media reported Saturday. Moody's said that the mini-budget will lend much-needed support to enhancing the country's foreign income and curb the current account deficit, Express News reported. The agency also said that the new budgetary measures weakened the ...Read More
 

China agrees to provide $2.5 billion loan to bolster foreign exchange reserves

The Pakistan Today (Feb 02, 2019)
ISLAMABAD: In a largely expected development, China has agreed to provide $2.5 billion in loans to help bolster Pakistan’s sliding foreign exchange reserves which will be deposited with the State Bank of Pakistan (SBP). According to a report in an English daily, a top government official has said that China has agreed to park $2.5 billion in deposits in the central bank. This follows the previous $2 billion loan provided by China at the end of July last year to bolster foreign... Read More
 

Reform package mistaken as mini-budget: Asad

The News (Feb 02, 2019)
Islamabad/Lahore: Federal Minister for Finance Asad Umar on Friday said the mini-budget was in fact an economic reforms package designed to improve the state of the country’s economy. Speaking in the Senate, he said the opposition indulged in point-scoring in his absence and whenever he was present in the House to answer their questions, they were absent. The minister highlighted the improved environment in the stock market last month, explaining that it had ...Read More
 

Moody’s terms mini-budget positive for export sectors

The Express Tribune (Feb 1, 2019)
KARACHI: Moody’s – one of three big global credit rating agencies – has termed the Pakistan Tehreek-e-Insaf (PTI) government’s second mini-budget positive for manufacturing and export-oriented sectors, which will lend much-needed support to enhancing the country’s foreign income and curb the current account deficit (CAD). The US-based rating agency, however, stated that new budgetary measures weakened the government’s income generation side as tax incentives ...Read More
 

Here is how the Budget 2019 benefits the Indian middle class

The Saudi Gazette (Feb 1, 2019)
NEW DELHI — India's Hindu nationalist-led government pledged 750 billion rupees ($10.56 billion) to support farm incomes and reduced the tax burden for middle class voters on Friday, hoping to refind favor with its last budget before a general election. Prime Minister Narendra Modi is facing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs. With opinion polls suggesting that Modi's Bharatiya Janata Party (BJP) could lose its parliamentary majority in an election that must be held by May, the ....Read More
 

PM directs FBR to focus on big tax evaders, non-filers

The Business Recorder (Jan 31, 2019)
ISLAMABAD: Prime Minister Imran Khan Wednesday directed the Federal Board of Revenue (FBR) to focus on recovery from the big tax evaders and bring the non-filers into the tax net. He was chairing a meeting over reforms in the FBR here at the Prime Minister Office. Minister for Finance Asad Umar, Minister of State for Revenue Hammad Azhar, FBR Chairman Jahanzaib Khan and other high officials attended the meeting, a press release said. The FBR Chairman briefed ...Read More
 

‘Govt to provide time-based subsidy to engineering sector’

The Express Tribune (Jan 31, 2019)
ISLAMABAD: Adviser to Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood on Wednesday has said although he doesn’t support the idea of subsidies but the government would provide a time-based subsidy on the export of motorcycles and engineering products to boost trade. The advisor while addressing a press conference alongside Chairman Board of Investments Haroon Sharif argued that it is not practical to provide subsidy for as long as 50 years and...Read More
 

Interim budget: Defence experts pitch for increase in funds

The Times of India (Jan 30, 2019)
New Delhi: (India): Ahead of the interim budget to be presented on February 1, defence experts are the view that the government must increase its expenditures on the defence sector. Defence analyst Swaran Singh said the defence budget is usually seen in comparison to India’s neighbours. “Last year, when Pakistan’s defence budget went up by about 18 18 per cent, India’s defence budget went up only by about 5.5 per cent. This was seen as a matter of concern. Likewise, Chinese defence...Read More
 

Pakistan needs to take tough decisions: DFID

The Dawn (Jan 30, 2019)
ISLAMABAD: The UK Department for International Development (DFID) has asked the government to take ‘tough decisions’ to reform various sectors of the economy. The DFID is working with the World Bank and Asian Development Bank to support Pakistan’s economic reform programmes. Talking to a group of journalists on Tuesday, DFID Chief Economist Rachel Glennerster said there exists a good understanding of what is to be done, and ...Read More
 

No relief: Despite two finance bills, Pakistan’s fiscal miseries to persist

The Express Tribune (Jan 29, 2019)
ISLAMABAD: Pakistan’s fiscal woes would not ease even after the introduction of two finance bills in the past five months as the government’s internal assessment showed that the budget deficit would still remain above 6% of the size of national economy or Rs2.4 trillion in the current fiscal year. In absolute terms, the projected budget deficit is higher than the one left behind by the Pakistan Muslim League-Nawaz (PML-N) government in its last year in power...Read More
 

Finance Minister vows to club taxes in next budget

The Pakistan Observer (Jan 29, 2019)
Lahore/Sialkot: Federal Finance Minister Asad Umar has pledged to make clubbing of taxes in the federal budget to facilitate the businessmen who paying a large number of taxes. He made this announcement on demand of the LCCI President Almas Hyder while speaking at the Lahore Chamber of Commerce & Industry. Asad Umar said that business community would be given the facility of single tax collector in the coming federal budget. He said that trust building between...Read More
 

Budget 2019: Farm stress busters, tax sops on government agenda

The Economic Times (Jan 28, 2019)
NEW DELHI: The Narendra Modi government’s last budget before the general election will focus on India as well as Bharat as it strives to win a second term in office. The interim budget, which is likely to be much more than a vote-on-account, will draw from precedents established by former finance ministers Pranab Mukherjee and P Chidambaram, who did not shy away from introducing tax measures as part of stimulus packages, said a senior government official...Read More
 

Mini-budget termed ‘anti-worker’

The Dawn (Jan 28, 2019)
KARACHI: Labour leaders at a rally against retrenchment of workers and violation of labour laws on Sunday termed the federal government’s recent ‘mini-budget’ ‘totally anti-worker’ and observed that it showed its leaning towards the rich. The rally was organised by the National Trade Union Federation and Textile, Garment General Workers Union Korangi. The labour leaders demanded that the government give an end to the continued retrenchment in factories, etc, and make sure all ...Read More
 

Mini or non-budget?

The Pakistan Today (Jan 27, 2019)
Old wine in a new bottle; Finance minister Asad Umar is so cocksure that measures already taken have revived a moribund economy that he is not willing to brook any criticism of his policies. When a correspondent at his post mini-budget conference asked him a question regarding possibility of a cheaper loan package from the IMF (International Monetary Fund) he was visibly irritated. In an emotional tone he declared that we would not go on our knees nor take any dictation from...Read More
 

Razak Dawood instrumental in shaping business-friendly mini-budget

The Pakistan Today (Jan 27, 2019)
ISLAMABAD: Unlike the previous ministers of commerce and industry, Prime Minister’s Adviser on Commerce Abdul Razak Dawood has proved to be highly influential in the federal cabinet of this government to make the supplementary budget more business/trade friendly. The proposals made in the mini-budget show that most of the recommendations forwarded by commerce division and the ministry of industries have been accommodated. “Previously...Read More
 

RCCI terms mini-budget business friendly

The Dawn (Jan 26, 2019)
RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) on Friday termed the supplementary finance bill 2019 business friendly. “It will offer incentives to Small Medium Enterprises (SMEs), industry, agriculture and capital market that will set the direction of the economy,” RCCI President Malik Shahid Saleem said in a press release. He said that despite economic crunch and a number of domestic and international challenges, the government had announced ...Read More
 

PTI presents a directionless mini-budget

The Global Village Space (Jan 26, 2019)
News Desk | GVS spoke with Express Tribune economics reporter Shahbaz Rana to get his thoughts on the government’s mini-budget and if it will achieve what the government needs in terms of economic growth, jobs, FBR tax collections and set Pakistan up on the right path for the next five years. GVS: What does the government need to do to generate economic growth and has the January mini-finance bill gone any way towards that? Pakistan’s fundamental problem is to ...Read More
 

Is the mini-budget a ruse?

The Dawn (Jan 25, 2019)
With the mini-budget announced by the incumbent government on Wednesday amid a ruckus and rowdy behaviour by the opposition, the next question arises how it will cope with the forthcoming challenges in the coming months. After the announcement of the mini-budget on Wednesday, the sentiments of the business community have largely been positive and felicitated the government for presenting a pro-business budget. However, the finance minister Asad Umar...Read More
 

Senate opposition rejects mini-budget

The Dawn (Jan 25, 2019)
ISLAMABAD: The opposition in the Senate on Thursday rejected the mini-budget as an attempt to appease the corporate sector, multinationals and capitalists. Taking part in the discussion on the money bill, senators from the opposition criticised the government for what they called a ‘directionless policy’, and its failure to address issues facing growers. They said that the government was adding to citizens’ problems by continuing to increase gas and electricity tariffs...Read More
 

Pakistan’s mini-budget to be huge for SMEs, farmers

The valuewalk.com by Michelle Jones (Jan 25, 2019)
Pakistan stocks have been rallying since Finance Minister Asad Umar presented what he called a “mini-budget” — officially called the Finance Supplementary Bill of 2019. The bill aims to improve the business environment in the South Asian nation, and investors applauded the measures. However, analysts from one firm note that more information on Pakistan’s financial standing is still needed. Credit Suisse analysts Fahd Niaz and Farhan Rizvi outlined and ...Read More
 
 
 
Budget Study Centre   Issue 32 Jan 24, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Pakistan’s mini-budget to be huge for SMEs, farmers

The Khaleej Times (Jan 24, 2019)
Pakistan's Finance Minister, Asad Umar, on Wednesday unveiled details about Pakistan Tehreek-i-Insaf's (PTI) 'mini-budget', which is targeted towards encouraging investment in the country and is expected to invigorate the country's stock market, agriculture, and industrial sectors. Speaking at the National Assembly session, Umar described his party's mini-budget as more of a corrective measure that will reduce the gap between Pakistan's rich and poor by addressing... Read More
 

Measures in mini-budget hailed

The News (Jan 24, 2019)
PESHAWAR: Former chairman Standing Committee of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Ahmad Jawad has welcomed the measures taken in the mini-budget including the lifting of the ban to purchase vehicles on non-filers and removing the embargo of tax on withdrawal of the amount starting from Rs50,000. The measures, he said, also includes the abolition of super tax on non-banking companies as well as on duty on... Read More
 

CPEC to play larger role in driving Pakistan’s economy

The Global Times (Jan 23, 2019)
China and Pakistan have decided to widen the scope of the China Pakistan Economic Corridor (CPEC), the Economic Times reported, adding that the two countries have signed new agreements to launch industrial, agricultural and socio-economic projects under this initiative. Why take this step at this very sensitive moment? In recent months, the project has been blamed for causing a debt trap and economic woes for Pakistan. There...Read More
 

Here’s what to expect from PTI’s mini-budget

www.samaa.tv (Jan 23, 2019)
Pakistanis should brace themselves for harder times ahead. The PTI government will present its second mini-budget today (Wednesday). The National Assembly will come into session at 4:30pm. Mobile phones, electronics and hundreds of luxury items are likely to get more expensive. The price of nearly 100 imported products is expected to rise too. It is expected that tax will be charged on Rs500 mobile balance. The ...Read More
 

Govt may abolish duty on 150 to 250 items in mini-budget

The News by Mehtab Haider (Jan 22, 2019)
ISLAMABAD: With the decision to increase import duty on 1800cc cars by 10 percent and jacking up tax on import of high end user mobile phone sets, the government is considering major relief in terms of downward adjustments in four import slabs by 1 percent as well as abolishing Regulatory Duty on 150 to 250 items through upcoming supplementary finance bill. “The government is going to announce implementation on five-year Strategic Trade Policy ...Read More
 

Mini-budget; Businessmen expect relief and economic direction from govt

The Daily Times (Jan 22, 2019)
The Rawalpindi Chamber of Commerce and Industry (RCCI) President Malik Shahid Saleem has said that business community has high hopes and expectations from upcoming economic package to be presented at national assembly on January 23. “We are anticipating big relief in taxes, regulatory duties and low tariff for Small and Medium Enterprises (SMEs),” they expressed their aspirations. Addressing a press conference at Chamber house here on Monday, RCCI President Malik...Read More
 

A Budget tale: When a boy wrote a poem justifying India’s first income tax act

The Economic Times (Jan 21, 2019)
NEW DELHI: In 1860, James Wilson, the finance member in Viceroy Lord Canning's council in undivided India, prepared India's first Budget, and also created the first income tax act. The levy of the income tax did not go down well with the Indians. The tax drew sharp reactions and some odd praise too. Military expenditure had ballooned in the aftermath of what the British call the Sepoy Mutiny and Indians their first War of Independence in 1857. The land revenue showed no scope of...Read More
 

Overseas Pakistanis pin hopes on mini budget

The Khaleej Times by Muzzafar Rizvi (Jan 21, 2019)
Pakistan Finance Minister Asad Umar is set to introduce an economic reform package in his second mini-budget speech this week to put the economy back on track after securing over $14 billion in financial assistance from the UAE, Saudi Arabia and China. Umar will unveil tax reforms, incentives to the stock market and announce new initiatives to ensure the ease of doing business in Pakistan. He is also expected to launch Pakistani diaspora bonds to raise $3 billion of funds through...Read More
 

‘Serious reservations’ in Cabinet over upcoming mini-budget

The Pakistan Today (Jan 20, 2019)
ISLAMABAD: While Finance Minister Asad Umar has announced to introduce the mini-budget on January 23, the government has yet to develop consensus among its cabinet members on the supplementary budget proposals. According to insiders, the members of the federal cabinet have serious reservations on a number of proposals aimed at increasing revenue and reducing expenditures through the supplementary budget. The finance ministry, sources claim, is yet... Read More
 

Market hold steady with 3rd budget of FY19 around corner

The Nation (Jan 20, 2019)
LAHORE - After two positive sessions, carrying on the momentum from the previous week, the market lost steam midway, ending slightly higher at 39,306 points, up by 0.7 percent WoW. News flows regarding the upcoming reform package kept investors sideways during the week. Volumes remained lower than the previous week for a large part, averaging 118m shares per day, while average daily traded value depicted a similar trend, ending down 14 percent WoW. During...Read More
 

KATI hopes relief for industry in ‘mini-budget’

Pakistan Observer (Jan 20, 2019)
Karachi: Acting president of Korangi Association of Trade & Industry (KATI) Faraz-ur-Rehman hoped the government would provide relief to industry in upcoming “mini budget”, would be announced in coming week. In a statement released by KATI Acting President of KATI Faraz-ur-Rehman and Vice President Maheen Salman applauded the efforts of federal government to promote exports and measures to lower down production cost of Industry. Faraz-ur-Rehman...Read More
 

Socio-economic opportunities in Pakistan

The Nation by Syed Tauseef Shah (Jan 19, 2019)
Reliance on science and technology will place Pakistan’s economy on a path of sustained development. There is need to strengthen science & technology as this was the critical need of the time. Value addition and knowledge input are key components for economic activity and are important determinants for growth. A 21st century economy cannot hope to grow without high contribution to GDP from the manufacturing sector. A knowledgeable and trained work force with....Read More
 

Stocks rise on mini budget expectations

The Dawn (Jan 19, 2019)
KARACHI: Markets ended last day of the week on a positive note gaining 62.6 points (0.16 per cent) before touching an intraday high of 147 points to finally settle at 36,306.50. The sentiment was lifted by reports of government planning to announce ease of doing business measures in the mini-budget to be presented on Wednesday. Initial reports suggest the government is likely to rationalise capital gains tax, reduce or abolish advance tax on brokers and allow capital losses to be ...Read More
 

What’s the mini budget all about?

The Pakistan Today by Shahab Jafry (Jan 18, 2019)
Thing about mini-budgets is that they are, by their very nature, designed to address revenue deficiencies that crept up, for whatever reason, in the original draft. That much is at least more believable than what the finance minister implied; that a few months after the last mini budget the government suddenly felt compelled to float another mini-budget because it wanted to encourage private investment, exports, and all that. And before anybody could speculate...Read More
 

Govt mulls rolling back income tax relief in mini-budget

www.geo.tv (Jan 18, 2019)
ISLAMABAD: Bitten by a shortfall in tax revenues, the Pakistan Tehreek-i-Insaf (PTI) federal government is considering a rollback of the income tax relief given to the salaried class by the previous government, sources told Geo News on Friday. In its last budget shortly before general elections in July 2018, the Pakistan Muslim League-Nawaz (PML-N) government had announced large tax cuts that included an upward revision of the minimum taxable income for salaried class to Rs1.2...Read More
 

APCTMA hopes mini-budget will facilitate tile manufacturers

The Pakistan Today (Jan 17, 2019)
ISLAMABAD: All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) is hopeful that in the upcoming mini-budget, the government would take steps that would enable the local tiles manufacturers to increase their market share in Pakistan which would result in saving precious foreign exchange and creating employment opportunities for the skilled and unskilled workforce. The APCTMA spokesman said that the tile industry could grow and become an export-oriented ...Read More
 

Pakistan stocks close lower as investors await ‘Mini Budget’

The Daily Times (Jan 17, 2019)
Pakistan’s equities Wednesday closed on a negative note with benchmark KSE-100 Index losing 342 points, to finally settle at 39,272 levels, down 0.9 percent. The market started off on a weak note only to continue the downward trajectory amid low volumes and lack of participation. KSE-100 Index remained lackluster throughout the session due to lack of investors’ interest as they wait for upcoming ‘Mini Budget’ scheduled to be presented in ...Read More
 

Opportunities for female youth vital for Pakistan’s economic stability: Andleeb Abbas

The Pakistan Today (Jan 16, 2019)
ISLAMABAD: Parliamentary Secretary for Foreign Affairs Andleeb Abbas has said that opportunities for channelling the potential and talent of the country’s female youth are pertinent to improve participation of women in the future of Pakistan’s economic stability. She was speaking during the Public-Private Dialogue on Gender-Focused Economic Reforms, organised by the Center for Research and Security Studies (CRSS) here on...Read More
 

Buzdar approves Lahore Ring Road council budget

The News (Jan 16, 2019)
LAHORE: Chief Minister Sardar Usman Buzdar presided over an important meeting of Lahore Ring Road Authority and Lahore Ring Road Council at his office here Tuesday. The meeting approved budget of Lahore Ring Road Council for the year 2018-19 besides approving the revised budget of 2017-18. The chief minister approved the Southern Loop III project of Lahore Ring Road and the meeting also approved starting the land acquisition ...Read More
 

FM’s promises rejuvenate Pakistan stocks, up 364 points

Daily Times (Jan 15, 2019)
Pakistan equities Monday closed in green with benchmark KSE-100 Index settling at 39,413, up 0.93 percent for the day on the back of anticipation of relief for the stock market in the government’s upcoming mini-budget. Market kicked off on a positive note after Finance Minister’s assurances to the business community over the weekend on the upcoming Finance Bill, scheduled to be presented in the National Assembly on January 23, 2019. An analyst at Trust Securities said ...Read More
 

Budget 2019 BQView: The economy under Modi-big ideas, small successes

bloombergquint.com (Jan 14, 2019)
Prime Minister Narendra Modi’s image has loomed large over the Indian economy in the last five years. Every big project has carried his stamp. From GST, demonetisation and the Mudra Scheme to Swachh Bharat and Ayushman Bharat, Modi has pitched big ideas of change for the economy. Some of these ideas have drawn praise; others derision. But few have resulted in any large dividends for the Indian ec...Read More
 

Mini budget session seems steamier than usual

The News (Jan 14, 2019)
LAHORE: Federal Information Minister Fawad Chaudhry on Sunday said that all previous budgets were fake and now real budgets were being presented. “The upcoming January 23 mini-budget will lay a foundation of Pakistan’s strong economy,” he said and added that the PTI government would come up to th ISLAMABAD: The upcoming supplementary national budget, formation of 38 house committees and fresh efforts for choreographing terms of reference for ...Read More
 

Minister terms all previous budget fake

The EL PIAS (Jan 13, 2019)
LAHORE: Federal Information Minister Fawad Chaudhry on Sunday said that all previous budgets were fake and now real budgets were being presented. “The upcoming January 23 mini-budget will lay a foundation of Pakistan’s strong economy,” he said and added that the PTI government would come up to the expectations of people. The information minister’s remarks come a day after Finance Minister Asad Umar on Saturday dispelled the impression that...Read More
 

Asad says tax-free mini budget to be unveiled on 23rd

The EL PIAS (Jan 13, 2019)
Three months later than was scheduled, the 2019 budget was filed this morning in Spain’s Congress by the finance minister, María Jesús Montero. The plans include the biggest rise in public spending since 2010, with more funds destined to social areas. The intention of Socialist Party (PSOE) Prime Minster Pedro Sánchez with the budget is to heal the wounds left behind by the dramatic global financial crisis, which began a decade ago...Read More
 

Food prices crawl up ahead of Pakistan’s mini-budget

The Gulf Times (Jan 13, 2019)
Internews/Karachi: Retailers have pushed up prices of essential food items including sugar and vegetables prices ahead of the mini-budget which will be announced by the government of Pakistan on January 23. Sugar now costs Rs60 per kg versus Rs55 per kg a few days ago following an increase in the wholesale price to Rs57-58 per kg from Rs55 per kg. Two months ago, the wholesale price of sugar was Rs52-53 per kg. Retailers with old stocks of sweetener are...Read More
 

OICCI opposes govt move to raise GST rate in mini-budget

The News (Jan 12, 2019)
ISLAMABAD: While sternly opposing any move to raise GST rate by one percent from 17 to 18 percent in the mini budget, the Overseas Investors Chamber of Commerce and Industries (OICCI) has asked PTI led government to broaden the narrowed tax base instead of raising burden over existing taxpayers. The OICCI also asked the government to maintain three tier taxation system for tobacco industry and reduce the difference between duty paid and non-duty paid...Read More
 

Stocks end flat as investors wait for update on mini budget

The News (Jan 12, 2019)
ISLAMABAD: While sternly opposing any move to raise GST rate by one percent from 17 to 18 percent in the mini budget, the Overseas Investors Chamber of Commerce and Industries (OICCI) has asked PTI led government to broaden the narrowed tax base instead of raising burden over existing taxpayers. The OICCI also asked the government to maintain three tier taxation system for tobacco industry and reduce the difference between duty paid and non-duty paid...Read More
 

Writ-less govt, wirless policies rudderless economy

The News (Jan 11, 2019)
LAHORE: Pakistani economy’s biggest drag is the absence of the government writ as most of the laws that ensure fair trade and better regulations are in place but authorities are unfortunately too timid to enforce them. The law for instance makes it binding on the sugar mills to make the payment of the sugarcane they purchased from the farmers within fifteen days. Yet the millers hold the payments till next season. They then ask the government to give them concessions and subsidies so...Read More
 
 
Budget Study Centre   Issue 31 Jan 10, 2019

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Budget 2019 expectations: increase female participation in workforce, eliminate hiring biases

The Business Recorder by Naveed But & Sohail Sarfraz (Jan 10, 2019)
The Pakistan Tehreek-e-Insaf (PTI) government is going to present another 'Finance Supplementary (Amendment) Bill, 2019,' envisaging taxation measures of around Rs 150 billion, in the coming session of the National Assembly to be held on January 14 to address the economic challenges of the country, it is learnt. According to sources, Minister for Finance, Revenue and Economic Affairs Asad Umar is likely to present the 'mini-budget'... Read More
 

‘Mini-budget’ this month

The Business Recorder by Naveed But & Sohail Sarfraz (Jan 10, 2019)
The Pakistan Tehreek-e-Insaf (PTI) government is going to present another 'Finance Supplementary (Amendment) Bill, 2019,' envisaging taxation measures of around Rs 150 billion, in the coming session of the National Assembly to be held on January 14 to address the economic challenges of the country, it is learnt. According to sources, Minister for Finance, Revenue and Economic Affairs Asad Umar is likely to present the 'mini-budget'... Read More
 

Budget session to start from January 31, interim budget likely on February1

The Economic Times (Jan 09, 2019)
Parliament's Budget Session will start from January 31 and will last till February 13, according to a decision taken at the meeting of Cabinet Committee on Parliamentary Affairs (CCPA). This will be the last session of the current Lok Sabha before it gets dissolved and fresh elections are held to elect a new Lok Sabha. Finance minister Arun Jaitley will table this year's Budget which will be a vote on account. The Full Budget will come only after the new government is formed...Read More
 

PTI govt set to introduce mini-budget in NA

The Nation (Jan 09, 2019)
ISLAMABAD - The PTI government in the upcoming National Assembly session has planned to present mini-budget in order to introduce a comprehensive economic plan for the next three years. The Imran Khan-led government after facing a lot of criticism from opposition on economic policies is for the first time introducing its three years economic plan. The government in the upcoming National Assembly session starting from Friday will present mini-budget with the intention to...Read More
 

Cut in development budget matter of grave concerns: ICCI

The Daily Times (Jan 08, 2019)
Islamabad Chamber of Commerce & Industry (ICCI) President Ahmed Hassan Moughal has expressed grave concerns over the drastic cut in the development budget as the government has sanctioned only 225.4 billion rupees for development projects for the first half of current fiscal year, which is reportedly 32% lower as compared with the disbursements made in the first half of previous fiscal year. In a statement issued here on Tuesday, Ahmed Hassan Moughal...Read More
 

Balochistan govt to present supplementary budget

The Geo News (Jan 08, 2019)
QUETTA: The Balochistan government has decided to present a supplementary budget during the next provincial cabinet meeting, sources said on Tuesday. The budget will be presented before the provincial assembly after approval from cabinet members. Balochistan Chief Minister Jam Kamal Khan has started consultations with coalition partners and opposition members to take them into confidence over the supplementary budget...Read More
 

Upcoming second mini budget to be defining moment for economy

The Express Tribune (Jan 07, 2019)
KARACHI: In the first five months of its term, the Pakistan Tehreek-e-Insaf (PTI) government has done nothing different to fix the beleaguered economy that can differentiate its performance from that of previous governments. It has also remained busy in building external debt, increasing indirect taxes and providing subsidies. The much-awaited economic roadmap that would transform the country into Naya Pakistan is yet to be announced...Read More
 

Pakistan’s budget deficit projected to clock at 6% for FY 18-19: Fitch Solutions

The Pakistan Today (Jan 07, 2019)
LAHORE: Fitch Solutions in a report released on Monday said it projected Pakistan’s budget deficit to lock in at 6% in the current financial year 2018-19 compared to 5.8% in the previous FY7-18. The government will probably have to slash its expenditures over the forthcoming months as it focuses to obtain funding from the International Monetary Fund (IMF) under the bailout programme due to weak revenue growth, said the research...Read More
 

Abu Dhabi Crown Prince Hold Talks with PM Imran Khan Discusses Oil Refinery in Pakistan

The News 18 (Jan 06, 2019)
Islamabad: Pakistan on Sunday said the UAE has "almost finalised" investment plan for the setting up of an oil refinery in the country as the Crown Prince of Abu Dhabi met Prime Minister Imran Khan and discussed economic assistance to the cash-strapped country to bolster its foreign exchange reserves. Crown Prince Sheikh Mohammed bin Zayed bin Sultan Al-Nahyan, who was on a day-long visit to the country after nearly 12 years, was received by Khan upon his arrival at Nur... Read More
 

Govt opposes 1% additional customs duty to raise revenue

The News by Mehtab Haider (Jan 06, 2019)
ISLAMABAD: The PTI-led government is considering different proposals for increasing taxes on cigarette industry in the range of Rs15 to 20 billion through mini budget expected to be unveiled during the ongoing month, The News has learnt. The government is considering different tax proposals for slapping additional taxes of Rs150 to Rs160 billion in remaining second half (Jan-June) period of the current fiscal year. Now different proposals are under consideration...Read More
 

UAE Prince Sheikh Mohammad to visit Pakistan, likely to announce USD 6.2 billion aid

The Economic Times (Jan 05, 2019)
The UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan will visit Pakistan on Sunday after the two sides finalised the terms and conditions for a USD 6.2 billion assistance package to Islamabad to bolster its foreign exchange reserves and the government's fiscal policies. The UAE government's financial assistance comes as Pakistan is negotiating a USD 8 billion bailout package from the International Monetary Fund (IMF) to overcome...Read More
 

China’s faltering economy gives US stonger hand in trade talks, Trump says

The Guardian (Jan 05, 2019)
Donald Trump has said China’s weakening economic growth puts the United States in a strong position as negotiators from the world’s two largest economies prepare for trade talks on Monday. US officials are heading to Beijing this weekend for the first face-to-face talks since Trump and China’s president, Xi Jinping, agreed in December to a 90-day truce in the trade war as they sought to strike a deal....Read More
 

Pakistan’s decision to declare Gulen group a banned outfit pleases Erdogan

The Express Tribune (Jan 04, 2019)
Turkish President Recep Tayyip Erdogan on Friday expressed his pleasure over the Supreme Court of Pakistan’s decision of declaring Pak-Turk Education Foundation – a group backed by Fethullah Gulen – a banned outfit. The apex court had ordered to hand over custody of all 28 Pak-Turk schools in Pakistan to the Turkiye Maarif Foundation (TMF) last month. Addressing a joint press conference in Ankara with Prime Minister Imran Khan, who is on two...Read More
 

Sri Lanka plans 2019 budget with 3.5-pct deficit

Economy Next (Jan 04, 2019)
ECONOMYNEXT - Sri Lanka's cabinet of ministers had approved plans by Finance Minister Mangala Samaraweera for a budget with a deficit of 3.5 percent of gross domestic product in 2019, the state information office said. The finance ministry hoped to boost revenue over 17 percent of GDP and keep current spending below 15 percent of GDP. Capital expenditure will be kept at 5.5 percent of GDP. The objective is to keep debt to GDP ratio at 70 percent, the proposal had...Read More
 

Pakistan secures further US$2b in funding from China to avoid economic crisis

South China Morning Post by Haroon Janjua (Jan 03, 2019)
China has pledged to lend an additional US$2 billion to Pakistan to increase the foreign exchange reserves of its South Asian ally, according to a government official in Islamabad. On Wednesday, an official who is not authorised to speak publicly on the matter said: “As Pakistan’s financial position is weak and to further avoid economic crisis, the government is preparing to take appropriate measures to fix the economy through financial help from China ...Read More
 

PTI govt’s economic policies have failed: Abbasi

Pakistan Today (Jan 03, 2019)
ISLAMABAD: Former prime minister and Pakistan Muslim League-Nawaz (PML-N) leader Shahid Khaqan Abbasi said on Thursday that the Pakistan Tehreek-e-Insaf (PTI) government’s economic policies have failed to deliver as any positive change is yet to be witnessed. Addressing a press conference along with other PML-N leaders, he said the PTI government failed to steer the country out of the existing economic crisis. “I am not criticising, rather putting the facts in front of the nation. The government...Read More
 

PTI govt’s economic policies have failed: Abbasi

The Express Tribune (Jan 02, 2019)
ISLAMABAD: Former prime minister and Pakistan Muslim League-Nawaz (PML-N) leader Shahid Khaqan Abbasi said on Thursday that the Pakistan Tehreek-e-Insaf (PTI) government’s economic policies have failed to deliver as any positive change is yet to be witnessed. Addressing a press conference along with other PML-N leaders, he said the PTI government failed to steer the country out of the existing economic crisis. “I am not criticising, rather putting the facts in...Read More
 

Expert reveals most dangerous threats to the global economy in 2019

News.com.au (Jan 02, 2019)
One of the world’s leading economists has issued a grim warning of the top hazards threatening global markets in 2019. And one of the top 30 factors is a potential “house price crash” in both Canada — and Down Under. Produced by multinational investment bank and financial services company Deutsche Bank, the list includes chief international economist Torsten Slok’s predictions of the risks which will drive financial markets in the new year...Read More
 

Oman to boost spending modestly in 2019 budget

The Reuters (Jan 01, 2019)
DUBAI, Jan 1 (Reuters) - Oman’s government expects to increase spending modestly this year under a 2019 state budget released on Tuesday, an official statement said. Spending is projected at 12.9 billion rials ($33.5 billion), up from 12.5 billion rials in the original budget for 2018. Revenues are estimated at 10.1 billion rials, assuming an average oil price of $58 per barrel this year. That would leave a 2019 budget deficit of 2.8 billion rials. In the first 10 months of 2018, the government ran...Read More
 

For Pakistan, 2018 marked by economic instability

The Express Tribune by Shahbaz Rana (Jan 01, 2019)
ISLAMABAD: Two key events at the beginning of 2018 defined the economic policies of Pakistan for the rest of the year – the change of finance minister Ishaq Dar and the United States President Donald Trump’s tweet in which he accused Islamabad of deceit and lies. Both these events symbolise instability that continued till the day, although Prime Minister Imran Khan on December 28 declared that the phase of ‘uncertainty’ is over. The country had three finance ministers in ...Read More
 

Another mini-budget on the anvil

The News by Shafqat Mahmood (Dec 31, 2018)
Federal Board of Revenue (FBR) always finds “standards” reasons to justify the low revenue growth. It has been getting away with such effortless approach for ages. Not surprising is recent FBR recommendations for levy of GST on POL including crude oil as well as refined fuel per littre and for withdrawing reduction of withholding tax on salaried tax payers. Previously Senator Dar would even dub fall in oil prices as revenue loss, forgetting its salutary impact on foreign exchange...Read More
 

Govt needs three years to revive Pakistan’s economy: Fawad Chaudhry

Daily Times (Dec 31, 2018)
Finance Minister Asad Umar will give a three-year road map to revive the country’s economy, said Federal Minister for Information & Broadcasting Fawad Chaudhry on Sunday. “It was reassuring to learn from Asad Umar that the upcoming mini budget is geared towards increasing investments and growth and he will announce a three-year roadmap to revive economy,” he Tweeted. Information & Broadcasting Minister Fawad Chaudhry quoted the finance minister as assuring him ...Read More
 

Mini-budget to press complaint taxpayers

The News (Dec 30, 2018)
KARACHI: New year is likely to press compliant taxpayers with new taxes in the second mini-budget as the cash-strapped government is struggling to increase revenue collection to slash budget deficit and create room for development expenditures. The government is set to announce second supplementary budget within less than five months after presenting its first supplementary budget in September. The government planned to introduce a mini-budget...Read More
 

Govt to pay add’l Rs 166.8b as interest payment

Pakistan Today (Dec 30, 2018)
ISLAMABAD: The government would have to pay additional Rs166.86 billion on interest payment on foreign loans during ongoing fiscal year mainly due to the sharp depreciation in local currency and increase in interest rate. The ministry of finance has upward revised the interest payment on foreign loans to Rs1.79 trillion for the year 2018-19 after the massive depreciation in currency against the US dollar. Initially, at the time of budget for current fiscal year, the government...Read More
 

No economic crisis, says Imran

The DAWN (Dec 29, 2018)
ISLAMABAD: Prime Minister Imran Khan has said the country may be facing challenges, but there is no crisis in the country. “All things are manageable. There is a lot of potential for improvement in this country. We inherited an economy with the highest-ever $19 billion current account deficit,” Mr Khan said in a brief interaction with journalists in the conference room of PM Secretariat just before he went...Read More
 

Pakistan considers another mini-budget as economic crisis looms

The Asia Times (Dec 29, 2018)
Pakistan’s Tehreek-e-Insaf (PTI) government is planning to present another mini-budget next month to counteract the widening fiscal deficit. This will be the second mini-budget that the PTI has presented in the four months since winning a majority in the general election this July. Immediately after taking charge in September, the government tabled revised budget estimates in the national assembly and claimed that the fiscal crisis was over...Read More
 

Government to rationalize tariffs, duties for industry in next mini-budget; Razak Dawood

Pakistan Today (Dec 28, 2018)
ISLAMABAD: Advisor for Commerce, Textile, Industry and Production and Investment Abdul Razak Dawood said that the government was working to rationalise tariffs structure and customs duties in the next mini-budget that would be presented in January 2019 to facilitate the growth of industrialisation as the current tariffs and customs duties were not favourable for the industry. He said after rationalisation of tariffs, the government would try to fix tariffs for 3-4...Read More
 

Mini budget in January 2019, says Finance Minister Asad Umar

The News (Dec 28, 2018)
ISLAMABAD: The Finance Minister, Asad Umar has announced to bring another mini budget in January 2019. Speaking to journalists, the Finance Minister said, “The mini budget is not being brought to generate revenue.” Commenting on the conditions by International Monetary Fund, Asad Umar said, “The pace and direction of the reforms are more important than IMF conditions.” “Whatever the finance minister has made decisions yet, it has nothing to do with IMF...Read More
 

IMF ready to bailout Pakistan, but Islamabad must reduce defence budget

The Defence Aviation Post (Dec 27, 2018)
The budget deficit has to be curtailed within a range of 4 to 5 percent of GDP during the programme period. Moving towards a free float of the exchange rate and hiking power tariff by 22 percent are among other major stumbling blocks to the way of evolving a staff-level agreement between the two sides. For achieving a primary surplus on the budget deficit front, official sources said the government will have to restrict deficit in such a way that ensures out of total revenues minus...Read More
 

Mini-budget to shrink economy, hit masses: Tax Bar

The Pakistan Observer (Dec 27, 2018)
Islamabad: Rawalpindi Islamabad Tax Bar Association (RITBA) on Wednesday warned that forthcoming mini-budget to result in contraction of the troubled economy adding to the plight of masses. The new taxation measures to improve the revenue collection will also hit the business community worried over instability, it said. Mini-budget will result in the closure of many businesses and leave countless unemployed while it will widen the...Read More
 

IMF asks Pakistan to ensure primary surplus on budget deficit

The Pakistan Today (Dec 26, 2018)
The International Monetary Fund (IMF) has asked Pakistan to ensure primary surplus on budget deficit to move ahead with the programme, leaving it with the hard choice of either slashing down its defence or development expenditure. The budget deficit has to be curtailed within a range of 4 to 5 percent of GDP during the programme period. Moving towards a free float of the exchange rate and hiking power tariff by 22 percent are among other major stumbling blocks to the...Read More
 

IMF puts Pakistan in a tight spot

The News (Dec 26, 2018)
ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to ensure primary surplus on budget deficit to move ahead with the programme, leaving it with the hard choice of either slashing down its defence or development expenditure. The budget deficit has to be curtailed within a range of 4 to 5 percent of GDP during the programme period. Moving towards free float of exchange rate and hiking power tariff by 22 percent are among other major...Read More
 

Iran presents budget to counter ‘cruel’ US sanctions

The Pakistan Today (Dec 25, 2018)
TEHRAN: President Hassan Rouhani on Tuesday unveiled Iran’s first annual budget since the return of US sanctions, saying it had been adjusted to take account of Washington’s “cruel” measures. The president announced a 20 percent increase in public sector wages in a sign of the economic challenges the Islamic republic has faced since the United States pulled out of the 2015 nuclear deal earlier this year...Read More
 

Pakistan to implement ‘prior actions’ for talks with IMF

The News (Dec 24, 2018)
ISLAMABAD: Pakistan will have to implement remaining ‘prior actions’ including taking additional taxation measures for jacking up FBR’s annual tax collection target close to Rs4455 billion in order to resume halved parleys with the IMF in second week of next month, The News has learnt. Differences between the IMF and Pakistan still persist over exact range of competitive exchange rate in terms of pace of adjustments but Pakistani side denied ...Read More
 

China rises to 2nd largest contributor to UN budget

Daily Pakistan Global(Dec 23, 2018)
United Nations: China will become the second largest contributor to the united nations regular budget starting next year, surpassing Japan. China’s contribution will rise to 12.01 percent in the next three years from 7.92 percent for the 2016-2018 period, according to a resolution adopted by the UN General Assembly on Saturday. Japan’s contribution will fall to 8.56 percent from 9.68 percent. Assessments for member countries’ contributions are made based on several...Read More
 

Resurfaced circular debt threatening the economy: PEW

Pakistan Today (Dec 23, 2018)
The Pakistan Economy Watch (PEW) on Sunday said the circular debt has again resurfaced and is threatening the fragile national economy. The infamous power sector debt has surpassed Rs1300 billion and there is no way in sight to tackle it which is adding to the problems of the government, it said. The government has decided to issue Rs200 billion Sukuk bonds to handle the debt which will calm down the issue for a year or two but not resolve the...Read More
 

Govt hospitals devour budget, torment patients

Pakistan Observer (Dec 23, 2018)
Sindh government has failed to give proper healthcare facilities to citizens and the government hospitals are made centers to torment poor patients and to devour healthcare budget, said Pakistan Tehreek-e-Insaf (PTI) Sindh chapter general secretary and parliamentary leader in Sindh Assembly Haleem Adil Sheikh, here Saturday. Haleem Adil Sheikh visited the house of a class -9 student in Surjani Town area of the city, who has been bed-ridden for two years due to hip bone...Read More
 

PM Imran will not attend World Economic Forum 2019

Pakistan Today (Dec 22, 2018)
Prime Minister Imran Khan will not attend the World Economic Forum sessions starting in Davos on 22nd January 2019, Prime Minister’s Special Assistant for Political Affairs Naeemul Haq confirmed. This is the second global leader’s meetup that the prime minister is skipping owing to internal commitments, the first one being the United Nations General Assembly session, in September, this year. “The prime minister believes that he should visit these forums only after...Read More
 

Turkey’s budget for 2019 ratified by parliament

Daily News (Dec 22, 2018)
Turkish parliament has ratified the country's 2019 budget following a 12-day marathon session in the general assembly. Parliament Speaker Binali Yıldırım announced in the early hours of Dec. 22 that the budget was backed by 335 lawmakers while 166 voted against it in the 600-seat chamber. Lawmakers from the ruling Justice and Development Party (AKP) and Nationalist Movement Party (MHP) voted "yes" for the budget. For 2019, Turkey is reportedly...Read More
 

Finance Division issues budget call circular

Pakistan Today (Dec 21, 2018)
ISLAMABAD: Finance Division here on Friday issued Budget Call Circular for the FY 2019-20 through the e-office facility which was recently implemented in the Division. Call circulars to the offices which have not so far shifted to the e-office system were conveyed through email. The issuance of the budget call circular electronically is in line with the government’s initiative to use the e-office facility. The budget call circular is issued every year to all federal ministries and departments...Read More
 

With eye on China, Japan unveils record defence budget

Pakistan Today (Dec 21, 2018)
TOKYO: Japan’s defence budget will swell to a record $47 billion for the next fiscal year, the government said Friday, as Tokyo beefs up its missile defence and deploys stealth jets in a bid to counter China. The defence spending was part of a $912-billion national budget for the fiscal year starting in April 2019, approved by Prime Minister Shinzo Abe´s cabinet. The government decided to set aside 5.26 trillion yen ($47 billion) for defence, the fifth record year in a row, defence ministry...Read More
 
 
Budget Study Centre   Issue 30 Dec 20, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

SBP reserves surge 10.85pc stand at & 8.05bn

The Pakistan Today (Dec 20, 2018)
The foreign exchange reserves held by the central bank increased by 10.85pc WoW, breaking a two-week losing streak, according to data released by the State Bank of Pakistan (SBP) on Thursday. Earlier, the reserves had been on a downward spiral for 14 successive weeks but financial assistance from Saudi Arabia provided much-needed support for the fast depleting reserves. The reserves had dropped to a four-and-a-half-year low, which raised concern... Read More
 

Govt offers IMF Rs190b in new taxes for bailout

The Express Tribune (Dec 20, 2018)
ISLAMABAD: Pakistan has offered the International Monetary Fund (IMF) to impose Rs190 billion worth of additional taxes to restrict budget deficit to Rs2.2 trillion and to further increase interest rates and devalue currency to increase foreign exchange reserves to $13 billion. These aggressive policy measures have potential to stifle economic growth rate, slowing its pace to only 3.9% in this fiscal year and stoking inflation. A major inflationary measure will be increase in... Read More
 

Information Minister says economy is biggest challenge

The Express Tribune (Dec 19, 2018)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government inherited a fragile economy, therefore stabilising it remains the key focus of the current government for ensuring sustainable growth, said Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain. Addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI), he said, “The government is facing no challenge on the political front, however...Read More
 

Govt. considering another ‘mini budget’ in Jan 2019

The Pakistan Today (Dec 19, 2018)
ISLAMABAD: Finance Minister Asad Umar on Wednesday said that the Pakistan Tehreek-e-Insaf (PTI) government is likely to introduce another ‘mini-budget’ to address the economic challenges facing the country. In his briefing to the Senate’s Standing Committee on Finance, Umar said the government was mulling over bringing another supplementary budget in January 2019, but no final decision has been made as yet. “An increase in taxes had been proposed but...Read More
 

Saudi 2019 budget boosts spending in bid to spur sluggish economy

The Bizenglish (Dec 18, 2018)
RIYADH: Saudi Arabia plans to increase state spending by more than seven percent next year in an effort to spur economic growth, which has been hurt by low oil prices, according to a 2019 budget released by the finance ministry on Tuesday. Spending is projected to rise to 1.106 trillion riyals ($295 billion) next year, up from an actual 1.030 trillion riyals this year, Saudi state television quoted the budget as saying...Read More
 

Sri Lanka new government to present full budget in January 2019: Eran Wickramaratne

The Bizenglish (Dec 18, 2018)
Sri Lanka’s new government lead by United National Party will present a full year budget to parliament in January 2019 and with the expectation of passing it in February 2019, Eran Wickremeratne told reporters recently. "We need 7 days debate and committee stage debate which requires 26 days," Wickramaratne said adding that there will be a disciplined administration. However he also told reporters that an interim budget will also be presented after a new cabinet of ministers is...Read More
 

Budget allocation for health increased to two percent: President Alvi

The Belta 100 (Dec 17, 2018)
ISLAMABAD: President Dr. Arif Alvi on Monday said that budget allocation for health has been increased to 2% from the current 0.9% of the GDP towards the attainment of Universal Health Care (UHC) and sustainable development health related goals. Talking to Regional Director, World Health Organization Dr. Ahmed Salim Saif Al-Mandhari and Regional Director, UNICEF SEARO Ms. Jean Gough, who called on him in Islamabad, Arif Alvi said that increase in the spending on social sector...Read More
 

Pakistan submits Chinese package details to IMF: Asad Umar

The Belta 100 (Dec 17, 2018)
Finance Minister Asad Umar on Monday stated that Pakistan has formally submitted details of the Chinese package to the International Monetary Fund, Express News reported. While talking to the media aboard a flight from Karachi to Islamabad, the finance minister apprised State Bank of Pakistan’s monetary and fiscal policies and stressed that the supplementary budget will help improve fiscal deficit. He further said that the government...Read More
 

Budgetary process lack citizen participation

Daily The Patriot (Dec 16, 2018)
Jhang: The budget study report revealed transparency and citizen’s participation in the budget-making process was found lacking at the district level in Punjab. Budget Call letters were delayed; consultation with relevant stake holders not held, only five districts had functional websites and 116 posts remained vacant in district budget branches while in 1 district, finance officer seat remained vacant during last fiscal year. CPDI demands adherence to the “Punjab Local... Read More
 

Ishaq Dar deplores economic policies of PTI government

The Pakistan Today (Dec 16, 2018)
ISLAMABAD: Former finance minister Ishaq Dar lamented the economic policies of Pakistan Tehreek-e-Insaf (PTI) government and said that they caused major setbacks to the country’s stock exchange network. In an interview to a private TV channel, he said that PTI’s policies also led devaluation of Pakistani rupee, which put the country under heavy economic pressures, in term of capital flow and investment. He said that the merger of stock exchanges of Karachi...Read More
 

Pakistan receives2nd tranche of $1b from KSA

The Nation (Dec 15, 2018)
ISLAMABAD - Pakistan on Friday has received the second tranche of one billion dollar from Saudi Arabia while the first tranche had already been utilised in less than one month period due to external debt servicing and other official payments. “The State Bank of Pakistan has received the second tranche worth one billion dollar from Saudi Arabia that would help build the declining foreign exchange reserves of the country,” said an official of the ministry of finance. He further said that...Read More
 

Govt. may introduce another mini-budget to address economic woes

The Pakistan Today (Dec 15, 2018)
ISLAMABAD: As the incumbent government is facing severe economic issues, it is likely that another supplementary budget would be introduced soon through a financial bill, sources revealed on Saturday. According to sources, Pakistan Tehreek-e-Insaf (PTI) government is making arrangements to introduce another mini-budget that would be aimed at meeting the conditions of International Monitory Fund (IMF), the constitution of Sarmaya-e-Pakistan and removal of the...Read More
 

FY 2018-19: Govt. approves Rs38.39bn budget for LDA, WASA, TEPA

The Pakistan Times (Dec 14, 2018)
LAHORE: A budget to the tune of Rs38.39 billion for the Lahore Development Authority (LDA), Water and Sanitation Agency (WASA) and Traffic, Engineering and Planning Agency (TEPA) for the fiscal year 2018-19 was approved on Friday. A meeting of LDA’s governing body, chaired by Punjab Chief Minister Sardar Usman Buzdar, approved the budget whereas more than Rs20 billion out of the total budget was allocated for the development works...Read More
 

FATF compliance: Govt launches crackdown against money laundering facilitators

The Pakistan Today (Dec 14, 2018)
ISLAMABAD: In a major operation against money laundering facilitators, the federal government has launched a countrywide crackdown against officials of the Federal Investigation Agency (FIA), Pakistan Customs, Anti-Narcotic Force (ANF) and other relevant departments. According to sources, the government has launched a massive crackdown against elements involved in money laundering, terror financing and capital flight from Pakistan...Read More
 

Tight monetary, fiscal policies add to public debt: EAC member

The Express Tribune (Dec 13, 2018)
ISLAMABAD: Owing to discord among economists regarding the new exchange rate policy, a key member of the Economic Advisory Council (EAC) distanced himself from fiscal and monetary policies on Wednesday and termed them self-defeating. “The tight monetary, fiscal and exchange rate policies are piling up public debt and impeding economic growth,” remarked EAC member Dr Ashfaque Hasan Khan. He was speaking at the 34th annual general meeting ...Read More
 

SBP reserves shrink by $242m, stand at $7.2bn

The Pakistan Today (Dec 13, 2018)
The total liquid foreign reserves held by the country stood at $13.7 billion on December 7, 2018. According to a statement issued by the central bank, the country’s foreign reserves held by the State Bank of Pakistan stood at $7.2 billion, while net foreign reserves held by commercial banks stood at $6.4 billion. During the week under review, SBP’s reserves decreased by $242 million to $7.2 billion owing to external debt servicing and other official payments...Read More
 

Trade deficit slightly contracts to $14.5b in five months

The Express Tribune (Dec 12, 2018)
ISLAMABAD: The government’s desire to make a big dent on last year’s $37.6-billion trade deficit is likely to remain unfulfilled as the deficit marginally contracted to $14.5 billion in first five months of the current year after the growth in exports tapered off. The trade deficit in July-November of fiscal year 2018-19 shrank on the back of almost flat growth in imports, showed the figures released by the Pakistan Bureau of Statistics (PBS). The $14.5-billion deficit in Jul-Nov FY19 was...Read More
 

Russia 2018 budget surplus to be close to 3% of GDP-Minister

The Financial Times (Dec 12, 2018)
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. Russia's budget surplus this year will be close to 3 per cent of GDP, the country's economy minister has said, higher than the official forecast thanks to strong oil revenues...Read More
 

Over$15b being remitted through illegal channel

The Express Tribune (Dec 11, 2018)
ISLAMABAD: In order to increase foreign exchange reserves, the government plans to strengthen banking channels to convince Pakistani expatriates to send remittances through legal means, and ultimately discourage other means of transmission. Currently, more than $15 billion are being remitted through the Hundi system, which is the main impediment to the growth of gross domestic product (GDP). Pakistani expatriates...Read More
 
 

Govt on track to streamline dwindling economy: Asad Umar

The Pakistan Today (Dec 11, 2018)
ISLAMABAD: With a focus to reach out to the poor, the Pakistan Tehreek-e-Insaf government, despite inheriting worst financial and current account crisis, has taken major policy initiatives for financial discipline and long-term socioeconomic development. After inheriting deteriorating macroeconomic indicators, the PTI government remained successful in straight-lining the key financial areas including taxation, governance...Read More
 
 

Govt to unveil new economic roadmap: PM

The Express Tribune (Dec 10, 2018)
KARACHI: Prime Minister Imran Khan on Sunday announced launching a new economic roadmap envisaging a strategy to overcome challenges and reset the country on the path to progress in the next six to nine months. The prime minister was on a day-long visit to the provincial metropolis during which he met representatives of the business community, Sindh Governor Imran Ismail, Chief Minister Murad Ali Shah and provincial...Read More
 
 

CPDI Launches ‘Study of Budget Making Process at District level in Balochistan’

Daily Asia Today (Dec 10, 2018)
Chammen: Transparency and citizen participation in budget making process found lacking at district level in Balochistan Chamman. Budget call letters delayed, budget time line is not followed properly, none of the 20 surveyed districts have involved the general public and the stockholders in budget making. Only 4 districts issued pre-budget statements where the copy was not present for the public, none of the district has a functional website ...Read More
 
 

Rupee could easily settle at 150 in next six months

The Express Tribune (Dec 09, 2018)
KARACHI: “If you have to determine a level where the rupee might settle against the US dollar, 150 is a very easy target you can see in the next six months,” remarked Alfalah GHP Chief Executive Maheen Rahman. She was addressing a seminar on “Pakistan’s Economy: Yet Another New Start” at the IBA ThinkFest on Saturday. Rahman said that there is no real level that can be fixed for the Pakistani currency, which has depreciated nearly 31% in the past 11 months...Read More
 
 

FBR recommends new taxes to bridge shortfall

The Dawn (Dec 09, 2018)
ISLAMABAD: After dealing with the external sector deficit, the government’s attention is now being drawn to a growing shortfall in tax revenues that is beginning to bite. In the first five months of the fiscal year, a shortfall of approximately Rs102 billion has been recorded in revenue collection, and this week officials from the Federal Board of Revenue (FBR) gave a briefing to the prime minister about the situation, with suggestions on how the shortfall can be reduced in coming months...Read More
 
 

PTI decreases Punjab development budget, increases KP’s by 11%

Urdu Point (Dec 08, 2018)
Lahore (UrduPoint / Pakistan Point News – 8th December, 2018) The Pakistan Tehreek-e-Insaf (PTI) government has cut the developmental budget of Punjab by half. About 54 percent less amount was spent on the developmental projects in Punjab this fiscal year as compared to last year. On the other hand, the developmental expenditures of Khyber Pakhtunkhwa (KP) were increased by 11 percent. According to the Ministry of Finance, the developmental...Read More
 
 

Request for increase in health budget tabled to PM

The News (Dec 08, 2018)
Islamabad: While pledging transformational changes in the health sector, particularly in public sector hospitals where patients are generally denied appropriate attention, treatment and respect, Minister for Health Aamer Mehmood Kiani claimed having tabled a request to the Prime Minister for increasing the country’s health budget to 2 per cent of the GDP in the next budget. Addressing a symposium on ‘Transforming Health Care’ here at the Pakistan Institute of Medical Sciences ...Read More
 
 

China should tolerate bigger budget deficit in 2019 to boost economy: State media

The Reuters (Dec 07, 2018)
BEIJING (Reuters) - The Chinese government should slow its deleveraging drive and tolerate a bigger budget deficit next year to support the economy as downward pressure sharply increases, a state-controlled newspaper said on Friday. A China yuan note is seen in this illustration photo May 31, 2017. As an effort to steady rising debt levels after years of credit-fuelled investment, China cut its annual budget deficit target this year - a first since 2012 - to 2.6 percent of gross domestic...Read More
 
 

Call for citizen’s participation in budget making process

The Dawn (Dec 07, 2018)
SHANGLA: Participants of a seminar held here the other day called for transparency and citizens’ participation in budget-making process at the district level in Khyber Pakhtunkhwa.The seminar titled ‘district government budget rules 2016’ was organised by Centre for Peace and Development Initiative (CPDI) in Bisham, which was attended by members of local government, social activists and village council secretaries. “The first draft of the district budget should be presented in April...Read More
 
 
 
Budget Study Centre   Issue 29 Dec 06, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Study of budget making process at district level launched

The Frontier Post (Dec 06, 2018)
Sherani: Action for Welfare and Awakening in Rural Environment (AWARE) Organization in collaboration with Center for Peace and Development Initiatives (CPDI) launched a report entitled ‘Study of budget making process at district level’ here in Sherani district. The session was aimed to identify the loopholes in preparing the district annual fiscal plan, encourage public participation and discourage political interventions. Chief guest of the session was Social Welfare... Read More
 

Citizen’s participation in budget making process urged

The Northern Post (Dec 06, 2018)
SHANGLA: Participants in a seminar in Shangla urged transparency and citizens’ participation in the budget-making process a district level in Khyber Pakhtunkhwa, a study report revealed transparency and citizen’s participation in the budget-making process was found lacking at the district level in Khyber Pakhtunkhwa. A seminar was organized by Center for peace and development initiative CPDI here at Bisham on Wednesday, which was attended by ...Read More
 

Study of budget making process at district level launched

The Pakistan Observer (Dec 06, 2018)
Sherani: Action for Welfare and Awakening in Rural Environment (AWARE) Organization in collaboration with Center for Peace and Development Initiatives (CPDI) launched a report entitled ‘Study of budget making process at district level’ here in Sherani district. The session was aimed to identify the loopholes in preparing the district annual fiscal plan, encourage public participation and discourage political interventions. Chief guest of the session was Social Welfare...Read More
 

Study of budget making process at district level launched

The Parliament Times (Dec 06, 2018)
SHERANI: Participants in a seminar in Shangla urged transparency and citizens’ participation in the budget-making process a district level in Khyber Pakhtunkhwa, a study report revealed transparency and citizen’s participation in the budget-making process was found lacking at the district level in Khyber Pakhtunkhwa. A seminar was organized by Center for peace and development initiative CPDI here at Bisham on Wednesday, which was attended by...Read More
 

Pakistan’s external debt, liabilities shoot to record at $96.7b

The Express Tribune (Dec 05, 2018)
ISLAMABAD: Pakistan’s external debt and liabilities soared to a record $96.7 billion by the end of September 2018, which appeared understated by $3 billion, as the central bank did not explicitly show the debt taken from China for shoring up foreign currency reserves. The external debt and liabilities increased to $96.7 billion as of September-end, reported the State Bank of Pakistan (SBP) on Tuesday. The figure, in reality, could ...Read More
 

Pakistan slashed non-salary budget by 10%

The Economic Times (Dec 05, 2018)
The Pakistan government has decided to cut by 10 per cent the non-salary current budget of the civilian setup as part of an austerity drive to solve the cash-strapped nation's economic woes, according to a media report. The Express Tribune reported that the move will help save nearly Rs 10 billion in the remainder period of fiscal year (2018-19) but would not address core fiscal problems. The Pakistan Tehreek-e-Insaf (PTI) government has also decided to continue with a ban ...Read More
 

Industrial cooperation: Pakistan expects to sign deal with China this month

The Express Tribune (Dec 04, 2018)
ISLAMABAD: Pakistan hoped on Monday to achieve a breakthrough by securing Chinese financing for a crucial project of the western route and sign an agreement on industrial cooperation during a meeting of the highest decision-making body of the China-Pakistan Economic Corridor (CPEC). While giving a briefing on the status of CPEC projects, Planning Minister Khusro Bakhtiar reiterated that Pakistan had not offered any special treatment to Saudi Arabia under CPEC...Read More
 

FBR urges people to file income tax returns at the earliest

The Pakistan Observer (Dec 04, 2018)
Islamabad: Federal Board of Revenue has urged the peoples to file their income tax returns at the earliest to take advantage of numerous facilities offered by the government for active tax payers. For the facilitation of people, the authority has already extended the deadline for filing income tax return to15th of this month. The source in FBR told Radio Pakistan that immediately after filing income tax returns, the name of the filer would be enlisted among the active taxpayers...Read More
 

Turkey inflation drops from 15-years high

The Business Recorder (Dec 03, 2018)
ANKARA: Inflation in Turkey dropped for the first time to nearly 22 percent last month after surging to a 15-year high in October, official statistics showed on Monday. The increase in consumer prices fell to 21.62 percent in November compared with he same month last year, still very high in relative terms but down from the 25.24 percent rate recorded in October and the first drop since March this year, according to the Turkish statistics office (TUIK). The figure was also... Read More
 

CPEC changing lives of people in Pakistan: Yue Yanghua

The Pakistan Observer (Dec 03, 2018)
Beijing: Deputy Director General of international department of the central committee of Communist Party of China (CPC), Yue Yanghua has said that the China Pakistan Economic Corridor (CPEC), economic initiative has started changing lives of the people in Pakistan with productive out-put. Addressing a delegation of journalists from South Asian and South East Asian countries, Yue Yanghua said that CPEC, the flagship project of Belt and Road Initiative (BRI) has...Read More
 

Rupee returns to inter-bank level after assurances of no more depreciation

The Express Tribune (Dec 02, 2018)
KARACHI: Currency dealers adjusted the Pakistani rupee in retail market to the inter-bank closing level of Rs139 to the US dollar on Saturday after higher authorities assured of no more devaluation. The State Bank of Pakistan (SBP) depreciated the rupee by 3.8%, or Rs5.06, to an all-time low at Rs139.05 to the greenback in the inter-bank market on its last working day of the week, Friday. It hit record intra-day low of Rs144 in the early hours of the day...Read More
 

Dull week at stock exchange as index drops 373 points

The Express Tribune (Dec 02, 2018)
KARACHI: The stock market had a bearish week as a lack of economic clarity took its toll on investors’ sentiments, leading to a decline of 373 points or 0.91% in the benchmark KSE-100 index, which settled at 40,496 points. The week kicked off on a negative note as a dearth of positive triggers kept investors on the sidelines. A widening budget deficit and plunging international crude oil prices dampened the overall mood. Although the KSE-100...Read More
 

Rupee devaluation to negatively impact economy

The Nation (Dec 01, 2018)
Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain has said that the depreciation of Pakistani rupee would have a massive negative impact on the already fragile economy of the country. In a statement issued on Monday, Hussain said that one-time jump of approximately 8 rupees is unbearable for the importers as well as exporters who have to explore new resources to fulfil their international financial deals...Read More
 

South Punjab to have separate development programme in next budget

The Pakistan Today (Dec 01, 2018)
MULTAN: Foreign Minister Shah Mehmood Qureshi Saturday said that south Punjab would have a separate annual development programme in the next provincial budget. Addressing the annual general meeting of Emersonians – old students of the historic Emerson College – Qureshi said the Pakistan Tehreek-e-Insaf (PTI) government was striving for the establishment of south Punjab province, however, amendments in the constitution and some legislation was...Read More
 

Rs250.44m Karak Council budget presented

The News (Dec 01, 2018)
KARAK: Tehsil Nazim Maulana Mehboob Janan presented annual deficit budget for the year 2018-19 with total outlay Rs250.44 million and resolved to look for new resources to increase the revenue of the Karak tehsil municipal administration.The budget session was held on Friday, with convener Haji Jehanzeb Khattak in the chair. All the members of the council attended the meeting. The tehsil nazim presented the budget with a total outlay of Rs250.44 million and said that Rs160.65 million would be...Read More
 

Indian economy grows 7.1pc y/y in Sept quarter

The Business Recorder (Nov 30, 2018)
NEW DELHI: India’s economy grew a lower-than-expected 7.1 percent in the July-September quarter from a more than two-year high of 8.2 percent in the previous quarter, government data showed on Friday. The latest quarter’s annual pace of growth was lower than a Reuters poll forecast of 7.4 percent. India’s $2.6 trillion economy, Asia’s third largest, grew 6.3 percent in the July-September quarter of 2017, the data released by the statistics ministry showed...Read More
 

Ascertained direction of Pakistan’s economy in 100 days: Finance Minister

The Dunya News.com (Nov 29, 2018)
ISLAMABAD (Dunya News) – Finance Minister Asad Umer on Thursday said that the government has ascertained direction of country’s economy in first 100 days. Manifesto of Pakistan Tehreek-e-Insaf will be completed at all cost. Addressing a ceremony regarding completion of Pakistan Tehreek-e-Insaf’s (PTI) first 100 days in government at the Convention Centre today, he said that all institutions were facing deficit when PTI came into power...Read More
 

Pakistan’s net international reserves stand at negative $4b, excluding IMF debt obligations

The Pakistan Today (Nov 29, 2018)
ISLAMABAD: Figures released by the State Bank of Pakistan (SBP) on Wednesday have revealed that the country’s balance of payment crisis isn’t over since its net international reserves are negative $4 billion even after eliminating IMF debt obligations. The figures released by the central bank show up to one-year obligations of the central bank surpass its gross official foreign currency reserves by around $4 billion, reports Express Tribune. Last week, the ...Read More
 

PM Imran reiterates PTI government will take Pakistan out from economic challenges

The Nation (Nov 28, 2018)
SIALKOT: Prime Minister Imran Khan Wednesday vowed to take the country forward and turnaround its economy through increased investment in human resource development and provision of higher and quality education to the youth. “Higher education and rise of a country are inter-linked. The main reason behind the countries which are moving forward is knowledge economy,” he said while speaking at the opening ceremony of a new campus of women ...Read More
 
 

Kalat: Local government fail to include stakeholders in the budget making process

The Balochitan Point (Nov 27, 2018)
KALAT: Study has revealed that the local governments (LGs) had failed to include stakeholders in the budget making process. Only 4 out of 20 districts released pre-budget statement that would have provided the stakeholders a chance to express their opinion on budget proposals. This study was shared with participants in a one-day workshop on ‘Study of Budget Making Process at District Level in Balochistan, here in Kalat on Tuesday. The ‘Study of Budget Making Process...Read More
 
 

$1.5 billion of foreign loans received during July-Oct FY19

The Pakistan Today (Nov 27, 2018)
ISLAMABAD: Pakistan received $1.5 billion of foreign loans during the first four months (July-October) of the financial year 2018-19, according to the latest data released. In the first four months of current FY19, international creditors released $1.46 billion, according to officials of the ministry of finance, reports Express Tribune. In October, Pakistan had obtained a commercial loan of $160 million on the short-term facility from Dubai Islamic Bank...Read More
 
 

Concerns expressed over budget making process at district level

The Parliament Times (Nov 26, 2018)
SHOB: In order to identify loopholes in preparing district annual financial plan, encourage public participation and discourage political interventions. Action for Welfare and Awakening in Rural Environment (AWARE) Organization in collobration with CPDI launched a report entitled “Study on Budget Making Process a t District Level” here at Assembly Hall, Shob. Chief Guest of the event was Chairman Municipal Committee Engineer ...Read More
 
 

Looming water crisis biggest threat to Pakistan’s economy: WEF

The Nation (Nov 25, 2018)
The World Economic forum has termed water crisis as Pakistan’s biggest challenge in the coming decade. The World Economic Forum has recently published a report named ‘Regional Risks for Doing Business’, which has listed imminent risks to the South Asian nations as well. The report said that Pakistan, India, Nepal and Sri Lanka will face 10 big threats such as failure of infrastructure, bad governance, inflation, cyber-attacks, unemployment etc. Another pertinent risk that the report...Read More
 
 

Budget revenue tipped to be $9.2bn higher than expected after company tax surge

The Guardian (Nov 25, 2018)
A surge in company tax is expected to push budget revenue $9.2bn higher in 2018-19 than expected in the May budget, according to Deloitte Access Economics’ latest forecast. The positive news sets the Morrison government up for a quicker return to surplus or gives latitude for pre-election sweeteners such as bringing forward personal income tax cuts as it prepares the midyear economic fiscal outlook, which is due in December...Read More
 
 

Somalia invites Pakistani businessmen to initiate joint ventures

The Express Tribune (Nov 24, 2018)
LAHORE: Embassy of Somalia Deputy Commercial Attaché Abdifitah Abdul Kadir Osman has invited Pakistani businessmen to enter into joint ventures with their counterparts in pharmaceutical and various other sectors. He extended the invitation while talking to Lahore Chamber of Commerce and Industry (LCCI) Vice President Fahimur Rehman Saigal. The attaché called for making visa process easy and business friendly, highlighting that Pakistan and...Read More
 
 

Pakistan records Rs541.7b budget deficit

The Nation (Nov 24, 2018)
ISLAMABAD - Pakistan has recorded a budget deficit of Rs541.7 billion during the first quarter (July to September) of the ongoing fiscal (FY2019) year despite provincial government generated massive surplus and cut in development budget. The country’s expenditures have stood at Rs1.64 trillion as against the revenues of Rs1.1 trillion during July-September period of FY2019. The budget deficit has recorded at Rs541.7 billion (1.4 percent of the GDP)...Read More
 
 

Zhob: Concerns expressed over budget making process at district level

The Balochistn Point (Nov 23, 2018)
ZHOB: In order to identify the loopholes in preparing the district annual fiscal plan, encourage public participation and discourage political interventions Action for Welfare and Awakening in Rural Environment (AWARE) Organization in collaboration with Center for Peace and Development Initiatives (CPDI) launched a report entitled ‘Study of budget making process at district level’ here at assembly hall Zhob. Chief guest of the event was Chairman Municipal Committee...Read More
 
 
 
Budget Study Centre   Issue 28 Nov 22, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PM approves National Financial Inclusion Strategy

The News (Nov 22, 2018)
ISLAMABAD: Prime Minister Imran Khan today approved 5-years plan for enhanced National Financial Inclusion Strategy (NFIS) during a meeting held at the Prime Minister’s Office. The meeting was attended by Minister for Finance Mr. Asad Umar, Advisor to Prime Minister Dr. Ishrat Hussain, Secretary Finance Mr. Arif Ahmed Khan, Governor State Bank Mr. Tariq Bajwa and senior government officials. National Financial Inclusion Strategy (NFIS) lays out the national vision... Read More
 

Gwadar’s deep-sea port set for further expansion in January

The Pakistan Today (Nov 22, 2018)
BEIJING: The Gwadar deep-sea port development will gain further momentum as work on its expansion plan is set to start from January, director general, Planning and Development, Gwadar Port Authority, Munir Ahmed Jan said on Tuesday. Under the expansion plan, five new berths would be added to the existing three berths for handling bigger ships, he said while talking to APP. Munir, who recently visited the Chinese capital to attend the CPEC Media Forum, said the first phase...Read More
 

Speakers call for enhancing capacities of LG members

The Frontier Post (Nov 21, 2018)
Lakki Marwat: Speakers at a session has called for enhancing capacities and capabilities of local bodies members in budget making to ensure utilization of financial resources on public wel fare progammes. The session on budget consultation was organized by Citizen Network for Budget Accountability at town hall building in Lakki city on Tuesday. Local government representatives and social and political activists were in attendance. To incorporate people’s suggestions and ensure active participation...Read More
 

Speakers for training LG representatives on budget making process

The Nation (Nov 21, 2018)
Lakki Marwat: Speakers at a session called for enhancing capacities and capabilities of local bodies members in budget making to ensure utilization of financial resources on public wel fare progammes. The session on budget consultation was organized by Citizen Network for Budget Accountability at town hall building in Lakki city on Tuesday. Local government representatives and social and political activists were in attendance. To incorporate people’s suggestions and ensure active participation...Read More
 

CPDI launched ‘study of budget making process’ at district level in KP

The Today’s Muslim (Nov 20, 2018)
Peshawar: CPDI launched ‘study on budget making process’ at the district level in Khyber Pakhtunkhwa. Transparency and citizens; participation in the budget making process sought at the district level in Khyber Pakhtunkhwa. The budget study report revealed transparency and citizen’s participation in the budget making process was fund lacking at the district level in Khyber Pakhtunkhwa. Budget call letters were delayed consultations with relevant stake holders not...Read More
 

Pakistan’s GDP growth to slow down to 5.4% in FY19: Fitch

The Pakistan Today (Nov 20, 2018)
LAHORE: A report released by Fitch Solutions has said that Pakistan economic growth will slow down over the coming quarters and projected it to be 5.4% for FY19 compared to 5.8% in FY18. It said, “We believe that further austerity measures will likely exacerbate the cyclical slowdown in the Pakistan economy. However, that is not to say that in the absence of the IMF-induced austerity, Pakistan will be able to sustain its current growth momentum. Pakistan has been ...Read More
 

Pakistan receives much-awaited $1b from Saudi Arabia

The Express Tribune (Nov 19, 2018)
KARACHI: Pakistan has received the first tranche of $1 billion from Saudi Arabia under the $6-billion financial package aimed at stabilising the fast dwindling foreign currency reserves. The much-needed inflow comes at a time when Pakistan and the International Monetary Fund (IMF) are negotiating a bailout package. The State Bank of Pakistan (SBP) confirmed on Monday that it had received $1 billion from Riyadh, giving a boost to the foreign currency reserves. Earlier, the ...Read More
 

Increase in exports only way to avoid external debt: Asad

The Nation (Nov 19, 2018)
ISLAMABAD: Federal Minister for Finance Asad Umar has said that enhancing the country exports was the only way to overcome the external debt or we have to seek more loans from IMF to run the affairs of the country. Talking to a private news channel, he said when PTI government came into power the country's economy was facing the deficit of Rs 800 billion. He said that trade can be improved with all the neighboring country, including Afghanistan, Iran, China and Saudi...Read More
 

CPDI issued a survey report on district budgeting report

The Today’s Muslim (Nov 17, 2018)
Peshawar: CPDI issued a survey report on district budgeting report, according to the report, public participation transparency indicates issues related to the budgetary implementation of the public sector transparency. The report indicates improvement in the previous year. However, the public participation and budgeting process was disappointing, the budget call letter was not consulted with the late-issued stakeholder, it has been revealed that websites of only... Read More
 

PTI government decides to launch five-year roadmap

The Express Tribune (Nov 17, 2018)
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has decided to launch a five-year roadmap to ensure development work in the long run in different sectors during its tenure. The government will launch a five-year roadmap during an event at the Convention Centre, apprising the public of the progress made on the 100-day plan. The government will announce different targets under the five-year roadmap to make developments in different sectors including the social sector...Read More
 

IMF proposes government to raise GST to 18% as part of comprehensive fiscal adjustment

The Pakistan Today (Nov 16, 2018)
ISLAMABAD: The government has been told by the International Monetary Fund (IMF) to increase the general sales tax (GST) to 18%, that will allow it to raise an additional Rs160 billion in new taxes. This puts the Pakistan Tehreek-e-Insaf (PTI) government in a quandary since it has pledged the IMF it will decrease the burden of indirect taxes, reports Express Tribune. The visiting IMF delegation is seeking tax efforts equivalent to 0.4% of gross domestic product (GDP)...Read More
 

In October: Current account deficit widens 34%, amount to $1.21b

The Express Tribune (Nov 16, 2018)
KARACHI: The current account deficit (CAD) – which is set to keep putting pressure on foreign currency reserves in the current fiscal year as well – widened for the second consecutive month in October due to an unwanted growth in imports and likely dividend payments. The deficit grew 34% to $1.21 billion in October compared with $909 million in the previous month, the State Bank of Pakistan (SBP) reported on Thursday...Read More
 

19000 more be added in tax net till June

The Nation (Nov 15, 2018)
MULTAN:- The Regional Tax Office (RTO) Multan has expanded tax base by registration of over 19,000 more tax payers ,including 440 companies to the list in a year till June 2018 by virtue of its efforts to enhance revenue generation. Chief Commissioner Inland Revenue, RTO Multan Abid Raza Bodla told APP on Wednesday that 19,742 additional tax payers had been registered and the number would rise as individuals still have time to file returns till...Read More
 

China: officials debate budget deficit

The Stratfor (Nov 15, 2018)
What Happened: Chinese authorities are debating whether it is necessary for the country to maintain a deficit that is 3 percent of the country's gross domestic product, with some economists arguing that private companies should receive a greater tax reduction, CNGold.com reported Nov. 15. Why It Matters: Chinese officials are exploring options to support the country's economy amid speculation in the property market and high leverage. More tax ...Read More
 

Pakistan looks forward to IMF’s bailout

The News (Nov 14, 2018)
ISLAMABAD: Pakistan looks forward to the International Monetary Fund’s (IMF) support for the government’s efforts aimed at achieving an economic turnaround, the finance minister said on Tuesday. The Finance Minister Asad Umar expressed the government’s willingness for the bailout at a meeting with the visiting IMF mission led by its chief Harald Finger. The statement clearly indicates that Islamabad is willing to take a bailout package from the IMF. Yet, the program’s size...Read More
 

Russia’s federal budget in surplus of 3.6% for first time since 2011

The Intellinews (Nov 14, 2018)
Russia’s federal budget revenues were RUB15.8 trillion ($233bn) in January-October 2018, exceeded expenditures of RUB12.78 trillion by RUB3.02 trillion ($44.1bn) handing the government a surplus of 3.6% of GDP, the Ministry of Finance reported on November 13. The primary surplus, that excludes the cost of servicing public debt, was even higher at 4.5% of GDP. Russia started this year expecting a budget deficit of 1.3% of GDP, but with the unexpected...Read More
 

Pakistan, China urged to tackle global conspiracies by trading in local currencies

The Pakistan Today (Nov 13, 2018)
ISLAMABAD: A leading Chinese scholar on Tuesday called for strengthening the Renminbi (official currency of China), which would subsequently improve the value of the Pakistani Rupee. Addressing the participants of a roundtable dialogue organised by the Pakistan-China Institute (PCI) entitled, “CPEC: The Way Forward”, Dr Chen Wenling said China and Pakistan must not get influenced by the pressures imposed by the external forces and...Read More
 

China hints at Afghanistan’s inclusion to CPEC, Belt & Road Initiative

The Pakistan Today (Nov 13, 2018)
ISLAMABAD: Chinese Ambassador Yao Jing on Monday urged Afghanistan to join the Belt & Road Initiative as well as the China-Pakistan Economic Corridor (CPEC) and said that Kabul was a “natural partner” of the mega-project. “Afghanistan can also act as a bridge to help expand connectivity between East, South and Central Asian regions. It [Afghanistan] would benefit from joining CPEC and BRI as the projects aim at social and economic development in Pakistan and would provide...Read More
 

IMF raises questions over measures to rein in fiscal deficit

The Pakistan Today (Nov 12, 2018)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) commenced their policy discussions on Monday aimed at reining in fiscal deficit and deliberate on economic and fiscal adjustments required to obtain a bailout of approximately $6 billion. A draft Memorandum of Economic and Financial Policies (MEFP) had been composed by the Ministry of Finance in deliberation with other economic ministries which was the focal point of discussion with the IMF, said a senior...Read More
 
 

Gwadar rising fast in Pakistan’s economic landscape

The Pakistan Today (Nov 12, 2018)
BEIJING: Once a small backward fishing town off the Arabian Sea in the southwest Balochistan province, Gwadar now is rising fast in the economic landscape of the country and is attracting more businessmen by offering numerous business opportunities. The deep-water port became fully functional in late 2016 under the China-Pakistan Economic Corridor and welcomed its first liner in March 2018, China Daily reported on Monday. According to the port’s...Read More
 
 

Pakistan to hold policy-level talks with IMF this week

The Pakistan Today (Nov 11, 2018)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are to start policy-level discussions this week, starting from Monday. The IMF team which arrived in Islamabad on November 6, has so far held technical discussions with Pakistan’s authorities. According to sources, Asad Umar will head the policy-level discussions from Pakistan’s side. The talks between the IMF and Pakistan will continue till November 20. The volume of the loan would be finalised in the policy level ...Read More
 
 

Pakistan to repay $1.7 billion on account of foreign debt till December

The Pakistan Today (Nov 10, 2018)
ISLAMABAD: Pakistan must make $1.7 billion on account of foreign debt repayments till December 2018, official data revealed on Friday piling up the risk to the country already plummeting foreign exchange reserves. Data obtained from various ministries reveals Pakistan requires to make debt servicing of over $1.7 billion in form of principal and markup on outstanding foreign loans in the present 2nd quarter, reports The News. Overall foreign debt obligations during the current FY19 are...Read More
 
 

Sri Lanka nearing 2018 with no budget, vote on account: economist

Economy Next (Nov 10, 2018)
ECONOMYNEXT - Sri Lanka is nearing the end of 2018 with no budget presented at Parliament for next year which has since been dissolved, raising questions about public finances an economist has warned. "This raises a serious issue about public finances, a prerogative of Parliament now dissolved," W A Wijewardene an economist who was a former Deputy Governor of the Central Bank said in a twitter.com message. "Spending for 2019 not approved;...Read More
 
 

Exports grow bu 3.52pc in four months, trade deficit swells by 1.97pc

The Pakistan Today (Nov 09, 2018)
ISLAMABAD: The exports from the country during the first four months (July-October) of the current financial year grew by 3.52 per cent and reached at $7,285 million, as compared to the exports of $7,037 million during the corresponding period of last year. Meanwhile, imports into the country also witnessed an increase of 0.06pc during the period under review, according to trade data released by the Pakistan Bureau of Statistics...Read More
 
 

Pakistan to brief IMF on wealth fund for state-owned institutions

The Pakistan Today (Nov 09, 2018)
ISLAMABAD: The economic managers of Pakistan Tehreek-e-Insaf (PTI) will brief the visiting delegation of International Monetary Fund (IMF) on the proposed wealth fund for state-owned institutions (SOIs) next week. The Ministry of Finance officials will brief the visiting team about the government’s plan of revamping the public sector enterprises by establishing a wealth fund, sources said, adding that the government wants to establish a holding company...Read More
 
 

Pakistan records Rs541.7b budget deficit

The Nation (Nov 24, 2018)
ISLAMABAD - Pakistan has recorded a budget deficit of Rs541.7 billion during the first quarter (July to September) of the ongoing fiscal (FY2019) year despite provincial government generated massive surplus and cut in development budget. The country’s expenditures have stood at Rs1.64 trillion as against the revenues of Rs1.1 trillion during July-September period of FY2019. The budget deficit has recorded at Rs541.7 billion (1.4 percent of the GDP)...Read More
 
 

Zhob: Concerns expressed over budget making process at district level

The Balochistn Point (Nov 23, 2018)
ZHOB: In order to identify the loopholes in preparing the district annual fiscal plan, encourage public participation and discourage political interventions Action for Welfare and Awakening in Rural Environment (AWARE) Organization in collaboration with Center for Peace and Development Initiatives (CPDI) launched a report entitled ‘Study of budget making process at district level’ here at assembly hall Zhob. Chief guest of the event was Chairman Municipal Committee...Read More
 
 
 
Budget Study Centre   Issue 27 Nov 08, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

China agrees to double its imports from Pakistan: Dawood

The Pakistan Observer (Nov 08, 2018)
ISLAMABAD: Adviser to Prime Minister on Commerce, Industry and Investment, Abdul Razak Dawood here on Wednesday said that during recently concluded visit of Prime Minister, China has agreed to increase its import from Pakistan by $1 billion immediately while the imports from Pakistan would further be increased by $1 billion next year. This will help Pakistan to boost its exports to China from existing level of $1.2 billion to $2.2 billion by end... Read More
 

LTU falls short of Rs60bln in revenue in July-October

The Express Tribune (Nov 08, 2018)
KARACHI:Large Taxpayers Unit (LTU) Karachi, the main arm of the Federal Board of Revenue (FBR), has missed its target for the first four months of the current fiscal year of 2018/19 by 15 percent or Rs59 billion owing to a significant decline in collection from petroleum and corporate sectors, official data showed on Wednesday. The provisional figures showed that the LTU Karachi collected Rs351 billion during the July-October period as against the...Read More
 

Pakistan has debt problem, but not China debt problem’

The Express Tribune (Nov 07, 2018)
BEIJING: Pakistan has a debt problem for sure, however, it does not have a China debt problem, said Finance Minister Asad Umar. Speaking to the China Global Television Network (CGTN), at the China International Import Exhibition (CIIE), his remarks came in response to accusations that China was using debt diplomacy to expand its influence worldwide. Umar has said that the China-Pakistan Economic Corridor (CPEC) was an excellent example of cooperation...Read More
 

Pakistan, IMF to start bailout talks today

The Express Tribune (Nov 07, 2018)
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are set to begin talks for a second bailout package in five years, amid Finance Minister Asad Umar’s proclamation that an immediate balance of payments crisis has been averted with the help of China and Saudi Arabia. The IMF and Pakistan would start on Wednesday two-week long parleys as Islamabad still remains on a weak footing due to disappointing fiscal results for first quarter (July-September) of...Read More
 

On the eve of IMF talks, Pakistan says balance of payments crisis over

The Pakistan Today (Nov 06, 2018)
ISLAMABAD: Pakistan’s finance minister Asad Umar said on Tuesday that its balance of payments crisis was over, a day before an International Monetary Fund (IMF) team was due to arrive to discuss a possible aid package. Asad Umar had announced last month that Pakistan would seek an IMF funding package, its 13th since the late 1980s. But he said on Tuesday that Prime Minister Imran Khan’s securing of a $6 billion package from Saudi Arabia plus promised...Read More
 

Rs45m budget for Zhob MC approved

The Pakistan Observer (Nov 06, 2018)
ZHOB: Municipal Committee Zhob unanimously passed its annual expenditure budget for fiscal year 2018-19. Total volume of the budget is forty five million rupees. The annual budget unanimously approved by the house amounting to Rs45 million. The newly-elected Chairman MC Engineer Abdul Rehman Mandokhail presided over the budget session, while the session was attended by former chairman Abdul Saleem Mandokhail, vice chairman Haji Naseeb Nasar, Abdul Qayyum...Read More
 

Chinese loan accounts for only 6.3pc of Pakistan’s total foreign debt

The Pakistan Today (Nov 05, 2018)
ISLAMABAD: The Chinese government’s soft loan for China Pakistan Economic Corridor (CPEC) projects accounts for only 6.3 per cent of Pakistan’s total foreign debt, said sources in the Embassy of China on Monday. They said of all the CPEC projects, only Karakoram Highway (KKH) Phase-II, Karachi-Lahore Motorway (Sukkur-Multan), Orange Line Metro Train and laying of Optical Fiber Cable have utilised the Chinese government’s soft loan, which was...Read More
 

Hammond says growth, not budget surplus, key to reduce debtst quarter FY19

The Euro News (Nov 05, 2018)
LONDON (Reuters) : Chancellor Philip Hammond raised the prospect of looser budget policy after Brexit and said faster growth was the best way to cut Britain's debt burden, but insisted he was still committed to ultimately running a budget surplus. Hammond's annual budget last week reinforced some analysts' doubts about his commitment to a budget surplus, after he used a tax windfall to fund public spending commitments rather than to make faster progress at….Read More
 

Govt releases Rs 105.46b for development projects under PSDP 2018-19

The Pakistan Today (Nov 04, 2018)
ISLAMABAD: The government has released over Rs105.46 billion under its Public Sector Development Programme (PSDP) 2018-19 for various ongoing and new schemes against the total allocation of Rs675 billion. The released funds include Rs49.02 billion for federal ministries and Rs18.6 billion for special areas, according to the latest data released by the Ministry of Planning, Development and Reform. Out of these allocations, the government has released Rs32.38 billion for National... Read More
 

Absence of debt strategy marred Balochistan’s budget: report

The DAWN (Nov 04, 2018)
ISLAMABAD: Reviewing the performance of Balochistan’s public finance management, an assessment report released by the World Bank says the provincial government has been preparing an unrealistic deficit budget since 2013-14, which it cannot finance because it is not allowed to borrow in the absence of a debt strategy. Over the years, the government has been able to curtail annual expenditures within available resources, yet significant shortcomings exist resulting...Read More
 

KL budget sets higher deficit, cuts subsidies

The Straits Times (Nov 03, 2018)
Kuala Lumpur:&nbps; Malaysia's six-month-old government yesterday announced its budget for 2019, which set a higher deficit to tackle development expenditure and debts left by the former administration, and coun-ter slowing economic growth. Pakatan Harapan's (PH) first financial plan will tap national oil giant Petronas, which will cough up RM30 billion (S$10 billion) in a special dividend to help with payments, in particular, RM37 billion in tax refunds owed by the former administration...Read More
 

Pakistan warns against adverse effects on UN peacekeeping amid shrinking budgets

The Nation (Nov 03, 2018)
New York (AFP): Pakistan has warned that arbitrary cuts in peacekeeping funding risk diminishing the effectiveness of UN’s flagship operations and jeopardizing the safety of peacekeepers. “Our focus should be on enhancing capabilities, not across the board cuts in the peacekeeping budget,” ambassador Maleeha Lodhi told the General Assembly’s Fourth Committee, which deals with Special political and decolonization matters. “Even if the discussion is reduced to...Read More
 

Transactions through e-banking channels touched Rs47.4 trillion in FY18: SBP

The Pakistan Today (Nov 01, 2018)
LAHORE: The volume of transactions in the last financial year 2017-18 processed via retail e-Banking channels i.e. real-time online banking (RTOB), ATMs, POS, mobile phone banking, internet banking etc touched 756.5 million valued at Rs47.4 trillion. According to the State Bank of Pakistan’s “Annual Performance Review 2017-18” report, RTOB transactions accounted for 84.1 percent share in terms of the value of transactions value with a volume share...Read More
 

FBR’s revenue collection rises 6.7% YOY, misses target by Rs100 billion for July October FY19

The Pakistan Today (Nov 01, 2018)
The tax regulator’s revenue collection went up by 6.7% year-on-year (YoY) in the period between July-October 2018 FY19, collecting Rs1.1 trillion in taxes. However, the Federal Board of Revenue (FBR) missed its revenue collection target by Rs100 billion, reports Express Tribune. The provisional revenue collection missed the mark since the tax regulator has claimed it has stopped the practice of taking steps to fill the revenue gap. Although the tax regulator...Read More
 

Budget 2018: a missed opportunity to save public services

The Guardian (Oct 31, 2018)
For most public sector staff the budget will make little difference. The government adds £20bn more for health over five years, then waves £650m more for social care. But at the end of Philip Hammond’s show, public services are still far from fully clothed. Available money that could have saved services was instead used to seduce taxpayers; the fiscal sustainability of ageing Britain remains as bleak as ever. The size of the public sector will at best stay constant as a...Read More
 

PML-N wasted 55pc Punjab budget on bridges, metros: Minister

The News (Oct 31, 2018)
NANKANA SAHIB: Punjab Minister for Human Rights Ijaz Alam has said that priorities of the government are to provide justice, clean water and education to the people. He was talking to journalists at Gurdwara Janamasthan here on Tuesday. The PML-N government wasted 55 per cent of entire Punjab budget only on making bridges and metro bus in Lahore while the people were deprived of basic facilities in other parts of the province. He said that billions of rupees were...Read More
 

IMF deal to be Pakistan’s last: Asad

The News (Oct 30, 2018)
ISLAMABAD: Minister for Finance and Revenue Asad Umer has said that Pakistan Tehreek-e-Insaf (PTI) led government would make contact with International Monetary Fund (IMF) as `last one ‘ in the history of the country through major increase in exports and decline in trade deficit in future. Speaking on floor of the House in National Assembly on Tuesday, the minister said that PPPP, PML-N and former dictators also contacted with IMF in their tenures and it...Read More
 

China to lower its de facto policy rate; EU’s budge guidelines

The Valuewalk (Oct 30, 2018)
For more than three years, the Italian 10-year government bond yield traded in a range with 2.5% serving as a market top of sorts. Then in June, that level was broken, with both fundamental and technical influencing markets. The higher rates result, in part, from budgetary issues that the EU has faced before, most notably in Greece. The moves higher in European rates come as a Capital Economics report notes that monetary easing, sending rates lower, isn’t altering China’s “gloomy” outlook for...Read More
 

Rs2.23 bn allocated for 17 health projects in south Punjab

The News (Oct 29, 2018)
LAHORE: On the direction of Chief Minister Sardar Usman Buzdar, an amount of Rs2.23 billion has been allocated for 17 mega health projects in South Punjab. Mega project of Nishter-2 will soon be started in Multan. The PTI government in its very first budget has allocated billions of rupees for health. Funds are being provided to complete health projects in Multan, Dera Ghazi Khan and Bahawalpur Division and seven new development projects are also being started...Read More
 
 

Finance ministry calls first meeting over NFC awards on 31st

The Pakistan Today (Oct 28, 2018)
ISLAMABAD: The Ministry of Finance is going to hold its first Fiscal Coordination Committee (FCC) meeting this week to discuss the annual reports of the National Finance Commission (NFC) and the implementation status on World Bank’s financial management and service delivery programme. According to sources, the finance ministry will be holding the first meeting of the FCC, which was constituted in April 2018 to strengthen...Read More
 
 

‘Financial crisis has begun’ Italy’s budget chaos risks second credit crunch, expert warns

The Express (Oct 28, 2018)
THE RISK of another financial crisis has escalated in the wake of Italy’s high-debt budget proposal, which may drive interests rates higher and escalate the dilemma further, a former leading official has warned. Italy’s populist coalition government sparked outrage in the European Union after proposing a budget deficit of 2.4 percent - a figure almost three times the previous administration’s target. The EU subsequently rejected the proposal and ordered Italy to amend it within...Read More
 
 

The European Commission rejects Italy’s budget

The Economist (Oct 27, 2018)
Like a couple of prizefighters before a grudge match, the European Commission and the Italian government are standing toe to toe. On October 23rd Brussels demanded that the populist coalition in Rome rewrite its 2019 budget. It is the first time since the launch of the euro that the commission has rejected outright the fiscal blueprint of a member state...Read More
 
 

Budget 2018: What we know already

BBC News (Oct 26, 2018)
However, when it comes to our money, the Budget Red Book is probably the most significant publication of the year. The 120 pages - even more if you count the supporting documents - outline the chancellor's plans for public and personal finances. Yet the pages are far from fresh. Much of what is detailed in Philip Hammond's speech and in the book has already been announced. This may not be immediately clear, so here is some of what we already know...Read More
 
 

Budget to offer business rates relief for small shops

The Guardian (Oct 26, 2018)
The chancellor will cut business rates bills by a third for almost half a million small high street shops in a £1.5bn spending pledge to fight the threat posed by Amazon and other online retailers. In next week’s budget, Philip Hammond will order £900m of immediate business rates relief for small retailers in an effort to combat shuttered shops on the high street, where small businesses have been threatened by high rates and the rapid rise of online shopping...Read More
 
 

Budget 2018: BBC editors on what to expect

BBC News (Oct 25, 2018)
The prime minister has promised an end to austerity, but can the chancellor, Philip Hammond, make good on her words in the Budget? The BBC's economics editor Kamal Ahmed, business editor Simon Jack, and political editor Laura Kuenssberg explain why he cannot simply turn on the spending taps...Read More
 
 
 
Budget Study Centre   Issue 26 Oct 25, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Foreign exchange: SBP’s reserves fall $264m, stand at $7.8b

The Express Tribune (Oct 25, 2018)
KARACHI: The foreign exchange reserves held by the central bank continued to spiral downwards for the ninth successive week as they fell 3.26% on a weekly basis, according to data released on Thursday. The continued drop in the reserves raises concern about Pakistan’s ability to meet its financing requirements as the reserves have dropped below the $8-billion mark. However, the government announced on Tuesday that it had managed to secure…. Read More
 

Pakistan improves WEF rankings by nine points

The Express Tribune (Oct 24, 2018)
ISLAMABAD: World Economic Forum (WEF) has appreciated efforts of National Accountability Bureau (NAB) for eradication of corruption and ranked Pakistan at 107 among 140 countries on Global Competitiveness Index (GCI). The WEF, in its Global Competitiveness report-2018, has redefined the competitiveness index 4.0. The new index provides guidelines for countries to gear up for the fourth industrial revolution. The report indicates….Read More
 

Pakistan to go for IMF bailout, despite $6 billion Saudi Arabia support package: Report

The Pakistan Today (Oct 24, 2018)
LAHORE: Despite getting a $6 billion bailout package from Saudi Arabia, Pakistan will still be seeking an International Monetary Fund (IMF) bailout. According to a Bloomberg report, the Finance Ministry spokesman Noor Ahmed on Wednesday said, “Islamabad will now negotiate with the IMF from an improved position.” He added, “We’ll have to go to IMF. The Saudi Arabian package “is something you strengthened your position for talks.” Mr….Read More
 

Pakistan obtained $930 million loans during first quarter FY19

The Pakistan Today (Oct 23, 2018)
ISLAMABAD: Pakistan obtained $216 million in loans from international lenders in September 2018 of the financial year 2018-19. According to available data, Pakistan in the first quarter (July-September) of the current fiscal year borrowed $930 million from different countries as well as banks. The country’s foreign exchange reserves have dwindled sharply as they touched a critically low level of $8,089 million till 12 October….Read More
 

Imran Khan leaves for Saudi conference saying Pakistan “Desperate” for loans

The Economic Times (Oct 23, 2018)
ISLAMABAD: Pakistan Prime Minister Imran Khan left for Saudi Arabia to attend an investment conference boycotted by other leaders over the death of journalist Jamal Khashoggi at the Saudi consulate in Istanbul, Turkey. Khan told an interviewer before leaving he was concerned at Khashoggi's death but could not skip the conference because "we're desperate" for possible Saudi loans to shore up Pakistan's economy.  It is Khan's second visit to Saudi ….Read More
 

Unpopular decisions needed to put economy on right patch

The Express Tribune (Oct 22, 2018)
LAHORE: The government is trying to set a new direction for the national economy by addressing the most serious macroeconomic challenge – the dwindling foreign exchange reserves. The finance ministry has unveiled a series of measures to deal with the widening budget deficit. These measures include more than $2 billion in planned development spending, doubling the tax rate on the highest-income group to 30% and hiking tariffs on ….Read More
 

Next IMF programme to be Pakistan’s last, Asad Umar Tells stockbrokers

The Dawn (Oct 20, 2018)
Finance Minister Asad Umar on Saturday claimed that Pakistan's economy is already on the road to recovery and that the next IMF programme that the government is pursuing will be its last. Umar made those remarks during a question and answer session following his meeting with a delegation of stockbrokers at the Pakistan Stock Exchange in Karachi. Following a tumultuous couple of weeks for the bourse, the finance minister had met the traders today to allay….Read More
 

Pakistan’s textile exports inch up by 0.86 percent in 1st quarter FY19

The Pakistan Today (Oct 20, 2018)
ISLAMABAD: Pakistan’s exports in textile and clothing group recorded an increase of 0.86 percent during the first quarter of the current fiscal year (July-September) 2018-19 as compared to the same period of last year. The textile group’s exports from the country increased to 3.285 billion during July-September (2018-19) against export’s worth of $3.257 billion during July-September (2017-18), according to data issued by Pakistan Bureau of Statistics (PBS) on Friday….Read More
 

Trump turns attention to budget cutting after slashing taxes

The Straits Times (Oct 18, 2018)
WASHINGTON (REUTERS) - US President Donald Trump, faced with a budget deficit at a six-year high, on Wednesday (Oct 17) told his Cabinet to come up with proposals to cut spending by their agencies by 5 per cent, but he suggested the military would be largely spared. "I'd like you all to come back with a 5 percent cut," Trump told his Cabinet secretaries at a meeting attended by reporters. The administration is beginning to pull together plans for the president's... Read More
 

Annual US budget deficit hits six-year high of $779b

The Daily Star (Oct 17, 2018)
Washington (AFP) The US budget deficit hit a six-year high of $779 billion in the most recent fiscal year, the Treasury announced Monday, underscoring the cost of last year's sweeping tax cuts. President Donald Trump hails the tax cuts as a boon to the economy, but corporate tax receipts dropped sharply and America's growing debt burden to finance the deficit became increasingly costly, the Treasury Department said. In the 2018 fiscal year, which ended …Read More
 

Egypt’s economy to grow 5.3pc in fiscal 2018-19

The Business Recorder (Oct 17, 2018)
CAIRO: Egypt’s economy will expand 5.3 percent in the fiscal year that began in July, a Reuters poll of 15 economists showed, as tourism recovers and the outlook for investment improves. That median forecast was up slightly from 5.2 percent predicted in the previous poll in July but below a government target of 5.8 percent. The economists’ median growth forecast for the year starting next July was 5.5 percent. “The economy will continue.…Read More
 

Pakistan to share CPEC debt details with IMF

The Economic Times (Oct 16, 2018)
NEW DELHI: Cash-strapped Pakistan in a desperate move has announced that it is ready to share details of its debt related to the China-Pakistan Economic Corridor (CPEC) with the IMF following tough talk by the Trump administration on bailout package. Pakistan is ready to share details of the debt related to CPEC with the IMF, Finance Minister Asad Umar said on Sunday following the US decision to review loans that Islamabad has got from China. The.…Read More
 

Chancellor plans budget spending pledges to reassure MPs

The Guardian (Oct 16, 2018)
Philip Hammond is planning to pepper his budget with a series of spending announcements to reassure Tory backbenchers who are anxious about the impact of universal credit and delivering on the prime minister’s pledge to end austerity. The chancellor is understood to share fears that Theresa May’s promise at the Tory party conference to step up public spending had been interpreted too literally, putting pressure on the Treasury to.…Read More
 

Ending austerity in UK ‘incompatible’ with budget plan

ABC News (Oct 15, 2018)
The U.S. federal budget deficit rose in fiscal 2018 to the highest level in six years as spending climbed, the Trump administration said Monday. The deficit jumped to $779 billion, $113 billion or 17 percent higher than the previous fiscal period, according to a statement from Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Mick Mulvaney. It was larger than any year since 2012, when it topped $1 trillion. The …Read More
 

US budget deficit expands to $779 billion in fiscal 2018 as spending surges

CNBA (Oct 15, 2018)
The U.S. federal budget deficit rose in fiscal 2018 to the highest level in six years as spending climbed, the Trump administration said Monday. The deficit jumped to $779 billion, $113 billion or 17 percent higher than the previous fiscal period, according to a statement from Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Mick Mulvaney. It was larger than any year since 2012, when it topped $1 trillion. The.…Read More
 

K-P to present Rs645b ‘boring’ budget today

Express Tribune (Oct 15, 2018)
PESHAWAR: The provincial government is all poised to present its first budget for the financial year 2018-19 on Monday, with a total outlay of over Rs645 billion. With a promise of including new schemes with no new taxes, around 28 per cent of the budget will be reserved for developmental projects — old and new. Khyber-Pakhtunkhwa (K-P) Finance Minister Taimur Saleem Jhagra is expected to present the budget in the provincial assembly at .…Read More
 

Investors bet against Italian debt as budget fears intensify

Financial Times (Oct 14, 2018)
London: Investors’ negative bets on Italian government debt are at their highest level since the early days of the market’s five-month-long sell-off, in an indication that Italy’s budget proposals have fuelled concern about its economic outlook. More than $35bn of Italian government bonds are out on loan according to data provider IHS Markit, up from $23bn late last year and equalling the value of bonds that were out on loan in early June when Italy’s new populist government was formed .…Read More
 
 
Budget Study Centre Issue 25
Oct 11, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

Trade deficit narrows to $8.869bln in July-September

The News (Oct 11, 2018)

KARACHI: Trade deficit narrowed 1.61 percent to $8.869 billion in the first quarter of the current fiscal year of 2018/19 as regulatory duties snipped non-essential imports into country, analysts said on Wednesday. Pakistan Bureau of Statistics (PBS) data showed that trade deficit was registered at $9.014 billion in the corresponding quarter a year earlier. Merchandise exports rose 4.56 percent to $5.39 billion, while imports inched up 0.63 percent to $14.26 billion ….Read More

 

IMF, Pakistan to meet as Islamabad seeks bailout

The News (Oct 11, 2018)

NUSA DUA, INDONESIA: IMF chief Christine Lagarde said she would meet with Pakistani officials on Thursday, with expectations that Islamabad will request a bailout of its shaky economy. Pakistani Finance minister Asad Umar, who is attending the fund's annual meeting in Bali, announced earlier this week that the government would seek talks with the IMF on a "stabilisation recovery programme". Lagarde said the IMF was yet to receive anything ….Read More

 

In US-China trade war, Pakistan gets extra export orders

The Express Tribune (Oct 11, 2018)

FAISALABAD: The present tense relations between the US and China have proved to be a blessing in disguise for Pakistan as its exporters are getting extra orders from the US in the prevailing circumstances, said Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain. Speaking to trainees of the Pakistan Institute of Trade and Development (PITAD) at the FCCI, Hussain said Faisalabad was a main ….Read More

 

Govt urged to adopt Taxpayers’ bill of Rights

The News (Oct 10, 2018)

ISLAMABAD: The federal government needs to start implementation of economic reform agenda by adopting Taxpayers’ Bill of Rights. The said bill clearly describes the taxpayers’ rights, the mechanism which will ensure the protection of these rights and possible remedy if taxpayers’ rights are violated or infringed upon. According to a press release issued on Tuesday, Centre for Peace and Development Initiatives (CPDI) urged the federal government ….Read More

 

Pakistan among economies most vulnerable to refinancing risks

The News (Oct 10, 2018)

LONDON: Sri Lanka, Armenia and Pakistan top the list of smaller emerging economies most vulnerable to refinancing risks, because they face a combination of large upcoming repayments and low foreign currency reserves, ratings agency Moody’s said on Wednesday. Emerging-market governments embarked on an issuance spree in recent years, taking advantage of record-low interest rates and major central banks that were pumping ….Read More

 

UK economy grows faster than expected in three months to August

The Independent (Oct 10, 2018)

UK GDP growth was stronger than expected in the three months to August thanks to the summer heatwave, official data on Wednesday showed. The economy expanded by 0.7 per cent over the three months, according to the latest estimate from the Office for National Statistics. That was higher than the 0.6 per cent consensus among City analysts. The three month growth rate for July was also revised up to 0.7 per cent, from 0.6 per cent previously. “The economy ….Read More

 

Record rupee devaluation pushes total debt & liabilities to shoot up by Rs900 billion

The Pakistan Today (Oct 10, 2018)

ISLAMABAD: The record 7.5 percent depreciation of the rupee on Tuesday has contributed to Pakistan’s total debt and liabilities to shoot up solely by around Rs900 billion and Rs1.4 trillion since August. The central bank on Tuesday allowed the rupee to be devalued by around Rs9.50 against the dollar in line with IMF suggestions signalling the government’s intent to completing prerequisites before it secures another bailout programme, reports Dawn. ….Read More

 

IMF warns Pakistan against ‘excessive loans’ from China

The Dawn (Oct 10, 2018)

NUSA DUA: Pakistan has not yet formally approached the International Monetary Fund for financial assistance, but if bailout talks get underway this week, the goal will be to help Pakistan reach its full potential, the IMF’s chief economist said on Tuesday. Addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF’s Maurice Obstfeld cautioned that increased Chinese involvement in Pakistan’s economy could bring both ….Read More

 

Pakistan’s debt sustainability indicators in disarray

The Express Tribune (Oct 10, 2018)

ISLAMABAD: Pakistan’s all debt sustainability indicators have turned topsy-turvy in the last fiscal year, suggesting that the country faces serious challenges to foreign debt repayment and is also exposed to high refinancing risks due to a short debt maturity period. The Public Debt Management Risk Report of June 2018, released by the Ministry of Finance, showed that most of the indicators moved further towards dangerous levels while three... Read More

IMF warns Italy not to breach EU spending rules in next budget

The Guardians (Oct 09, 2018)

The International Monetary Fund has thrown its weight behind Brussels in its battle with Italy’s coalition government over plans to increase the indebted country’s borrowing in its next budget. The Washington-based lender of last resort, which is holding its annual conference in Bali this week, warned Rome to abide by the EU’s financial rulebook or risk a rebellion by investors that could trigger a debt default. Italy’s populist coalition is targeting a …Read More

Trump’s tariffs will harm growth in 2019, IMF predicts

The Washington Post (Oct 08, 2018)

The International Monetary Fund has cut its U.S. growth forecast for next year, warning that President Trump’s protectionist trade policies will harm growth domestically and around the world. In its World Economic Outlook, released Monday evening, the IMF says the U.S. economy is expected to grow 2.9 percent this year and 2.5 percent next year. The organization had forecast in April that the U.S. economy would grow 2.7 percent in 2019. “If you.…Read More

 

US economists win Nobel prize for work on climate and growth

The Guardian (Oct 08, 2018)

Two American economists at the forefront of work on climate change and the role of governments in boosting growth have been jointly awarded the prestigious Nobel Memorial prize for economics. The Royal Swedish Academy of Sciences said William Nordhaus and Paul Romer were being honoured for their research into two of the most “basic and pressing” economic issues of the age. Nordhaus made his name by warning policymakers.…Read More

 

Pakistan knocks at IMF door to void default

The Express Tribune (Oct 08, 2018)

ISLAMABAD: After weeks of dilly-dallying, Pakistan on Monday announced approaching the International Monetary Fund (IMF) for a bailout package aimed at avoiding default on international debt obligations and restoring confidence among the investors. “After taking into account the current situation and consultation with leading economists, the government has decided to approach the IMF for a bailout programme,” announced Finance Minister Asad Umar through a recorded video message.…Read More

 

Consumers brace for higher inflation in FY19

The Express Tribune (Oct 07, 2018

KARACHI: Pakistan is on a path of high inflation following the government’s decision to revise gas prices upwards for domestic consumers and other sectors of the economy, like fertiliser, cement and CNG fuel. Experts are on the same page as they expect an uptrend in inflation and slowdown in economic growth during the current fiscal year 2018-19. Preliminary assessment of a securities brokerage house suggests inflation may soon soar to double …Read More

 

Pakistan confronted by difficult economic situation: IMF

The Pakistan Today (Oct 05, 2018)

LAHORE: The International Monetary Fund (IMF) team concluded its week-long visit on Thursday and issued a report stating Pakistan was confronted by a difficult economic situation, with high fiscal and current account deficits and low foreign exchange reserves. The IMF delegation was led by its Washington-based mission chief Harald Finger and over a week-long visit discussed the country’s economic situation and exchanged views on necessary …Read More

 

Passage of mini-budget: A testing time for PTI govt is over

The News (Oct 04, 2018)

ISLAMABAD: Running into their second eventful month in power laden with unlimited political rhetoric, the PTI government must be feeling relieved cutting the 2018-19 PML-N budget according to its needs. But the forced patch work in budget still doesn’t give even a feel, glimpse of ruling party’s election manifesto and economic vision. Perhaps, delayed temporarily? Till then, the fast track “tabddeli” (change) is on hold. Got paused -- to be more appropriate. .…Read More

 

Thar Energy gets $3.9 million investment from Chinese firm

The Express Tribune (Oct 04, 2018)

KARACHI: China Machinery Engineering Corporation (CMEC) has acquired a 10% stake by investing $3.9 million in Hub Power Company’s (Hubco) subsidiary Thar Energy Limited (TEL) – one of the first domestic coal-fired power projects at Thar coal block-II. With majority shareholding of about 60% in the project, Hubco has established TEL for setting up a 330-megawatt mine-mouth lignite-fire The company has signed a shareholders’ agreement with .…Read More

 

World economy at risk of another financial crash, sys IMF

The Guardian (Oct 03, 2018)

The world economy is at risk of another financial meltdown, following the failure of governments and regulators to push through all the reformsneeded to protect the system from reckless behaviour, the International Monetary Fund has warned. With global debt levels well above those at the time of the last crash in 2008, the risk remains that unregulated parts of the financial system could trigger a global panic, the …Read More

 

Pakistan needs to raise $20b to avoid payment crisis

The Express Tribune (Oct 03, 2018)

DUBAI: Pakistan has to initiate bailout talks with the International Monetary Fund (IMF) in addition to seeking investment from friendly countries. It needs to arrange a massive amount of up to $20 billion instantly to avoid foreign payment crisis. “No one party appears to be willing to provide the entire amount ($18-20 billion) required to run the country in the current fiscal year 2019,” said Citi Head of Public Sector, Middle East, Pakistan & Levant, Head.…Read More

 

Power sector losses of Rs200b to be recovered from defaulters

The Express Tribune (Oct 04, 2018)

ISLAMABAD: The country’s economic managers are looking to recover a loss of Rs200 billion from power-sector defaulters and bring down the overall loss to 16.3%, as allowed by the regulator. It turned down the Power Division’s plea to pass on the Rs200-billion loss on account of electricity theft to honest consumers which were paying their bills regularly. Officials revealed that Finance Minister Asad Umar, while chairing a recent meeting of the.…Read More

 

FBR goes after 169 wealth non-filers, many more set to face hot pursuit

The Express Tribune (Oct 2, 2018)

ISLAMABAD: In a large swoop to widen the tax net and ensure tax compliance across the country, Federal Board of Revenue (FBR) has started a massive drive for the recovery of taxes from big and influential tax evaders. The crackdown on the high-value targets has been launched on the instruction of Federal Minister for Finance, Revenue and Economic Affairs, Asad Umar as part of the government’s efforts to widen the tax net and bring in it all those individual.…Read More

 

Italian deputy PM threatens to sue EU boss over budget criticism

The Guardian (Oct 02, 2018)

The Italian deputy prime minister, Matteo Salvini, has threatened to sue Jean-Claude Juncker for damages, accusing the EU president of pushing up Rome’s cost of borrowing by likening Italy to Greece. Salvini, who is also Italy’s interior minister and leader of the far-right League party, was speaking after Juncker’s comments helped send the yield on Italian benchmark bonds to a four-and-a-half year high of 3.4%, while shares in Italian banks plunged. …Read More

 

Budget 2018: What can we expect from chancellor Philip Hammond’s budget this month?

The Independent by Caitlin Morrison (Oct 02, 2018)

Philip Hammond will deliver his 2018 Budget at the end of October, and with Brexit negotiations looming, there is more uncertainty than ever surrounding the state of the UK economy. The Budget falls earlier than usual this year because of the need to clarify tax, spending and other financial decisions, before a final Brexit deal can be reached with the EU. The chancellor will update the country on economic matters just 10 days after the next EU summit, but …Read More

 

Pakistan assures IMF of increase in tax collection

The Express Tribune (Oct 02, 2018)

ISLAMABAD: Amid a decline in revenues, Pakistan has assured the International Monetary Fund (IMF) that its tax collection will soon get a boost as it has planned to utilise information being received under multilateral tax conventions and will also give a push to cases under litigation. The government has decided to include Saudi Arabia in the list of countries where Pakistanis have undeclared assets which have not been disclosed to the Federal Board .…Read More

 

Core inflation jumps to four-year high at 8%

The Express Tribune (Oct 01, 2018)

ISLAMABAD: Core inflation jumped 8% in September 2018 – the highest level in the past four years, which was slightly lower than the key interest rate, indicating inflationary pressures that were affecting prices of almost every household item.

Core inflation – which excludes volatile food and energy prices – went up from 7.7% in August to 8% in September, reported the Pakistan Bureau of Statistics (PBS) on Monday…Read More

 

Recovery of bad debts can help boost economy

The Express Tribune (Oct 01, 2018)

ISLAMABAD: Financial institutions of a country are very important. Fiscal strength of these institutions determines the strength of the economy. However, just like other institutions in Pakistan, previous governments failed to pay attention to their improvement. Now, the responsibility is on the new Pakistan Tehreek-e-Insaf (PTI)-led administration, which has so far remained undecided about how to handle financials of the country.…Read More

 

DN presents over Rs8bn 2018-19 budget for DI Khan

The Business Recorder (Oct 01, 2018)

DIKHAN: District Nazim Dera Ismail Khan Nawabzada Azizullah Alizai here Monday presented 4th annual budget of the district government for fiscal year 2018-19 amounting Rs8,356,058,000 and also got approved the revised budget for 2017-18 from District Council. Addressing on the occasion Azizullah Alizai said that in budget 2018-19, Rs410,700,000 has been allocated for developmental schemes, Rs619,657,000 for non-….. …Read More

 

IMF calls to ‘reinvigorate’ trade in face of economic war between US and China

The Telegraph (Sep 30, 2018)

Radical reforms to open up trade in services, online commerce and cross-border investment could give the world economy a major boost over the coming years, if Governments choose to seize the opportunity. The International Monetary Fund is launching a new campaign to stop the trade war and encourage nations to rediscover the benefits of trade, in the face of higher tariffs and anti-trade rhetoric, particularly as the US builds barriers…Read More

 

India’s economy overtake UK, Germany, France and Japan in the next decade, predicts HSBC

The Telegraph (Sep 30, 2018)

India will be the fastest growing big economy of the next decade, leapfrogging the UK, Germany, France and ­Japan to become the third biggest in the world, according to new forecasts. Economists at HSBC said the world’s largest democracy will grow at more than 6pc per year on average over the coming decade. By contrast growth in China is expected to slow to below 5pc per year in the late 2020s.…Read More

 

State Bank of Pakistan increases interest rate to 8.5% in new monetary policy

Daily Pakistan Global (Sep 30, 2018)

ISLAMABAD – The State Bank of Pakistan has increased the key interest rate by hundred basis points. In a monetary policy statement on Saturday, the Central Bank said the new interest rate will be 8.5 percent. The rate will be effective from Monday (1st October 2018) for the next two months in order to further consolidate efforts required to ensure macroeconomic stability, the statement added. The central bank said that though political uncertainty …Read More

 

Italy budget uncertainty returns to haunt Europe

The Times of Malta (Sep 28, 2018)

Europe’s share markets and the euro both took a tumble yesterday as reports that Italy’s long-awaited budget was facing a delay compounded an already groggy globalmood after the third US interest rate rise of the year. Italy’s main Milan bourse slumped as much as two per cent with the country’s big banks down even more as the country’s borrowing costs also hit a three-week high in the government bond markets. Investors have.…Read More

 

Investors dump Italian bonds after ministers agree ‘budget for change’

The Times of Malta (Sep 28, 2018)

Italian government bonds were set for their worst day in over three months after key Italian government officials agreed a budget overnight that will see the country run a deficit in 2019 and beyond. Italy's government on Thursday targeted the budget deficit at 2.4% of gross domestic product for the next three years, defying Brussels and marking a victory for party chiefs over Economy Minister Giovanni Tria, an unaffiliated technocrat. "There is an .…Read More

 

Budget Study Centre Issue 24
Sep 27, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

WTO downgrades forecast for global economy and appeals for ‘restraint’ on trade war

The Telegraph by Anna Isaac (Sep 27, 2018)

The global umpire of trade has downgraded its economic forecast, claiming a rising tide of protectionism has dampened growth. A burgeoning trade war between the world’s two largest economies, China and the US, was cited as the chief reason for reducing 2018’s trade growth by 0.5 percentage points to 3.9pc. Trade is expected to slow further next year, to 3.7pc growth, according to the World Trade Organisation (WTO). …Read More

 

Argentina announces $57.1bn deal with IMF

The Telegraph by Wil Crisp (Sep 26, 2018)

Argentina has agreed a $57.1bn (£43.4bn) deal with the International Monetary Fund (IMF) designed to stabilise its economy. The new IMF agreement boosts the total funding available from the fund by $7.1bn and frontloads financing, increasing available resources by $19bn through the end of 2019. If the new plan is approved by the IMF’s Executive Board, the funding provided through the agreement would be used by Argentina for…Read More

 

US Federal Reserve raises interest rates amid strong growth

The Telegraph by Wil Crisp (Sep 26, 2018)

The US Federal Reserve has raised interest rates for the third time this year, taking the range of its Federal Funds Rate to between 2.00pc and 2.25pc, up by 0.25 percentage points. The latest move is the central bank's eighth rate rise since 2015. In a statement the central bank said: "In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate". The Federal Reserve was widely .…Read More

 

France’s 2019 budget to ease tax burden on households, firms

The Times of Malta (Sep 24, 2018)

France will reduce the tax burden on households and companies by nearly €25 billion next year, the government said in its 2019 budget bill, pushing the deficit up towards an EU cap as the economy fails to gain pace. Households will see their tax bill reduced by a total €6 billion while business taxes will fall by €18.8 billion, resulting in the overall tax burden decreasing to 44.2 per cent of national income, the lowest for France since 2012. With his …Read More

 

Foreign exchange: SBP’s reserves dip 3.07%, amount to $9.33b

The Express Tribune (Sep 24, 2018)

KARACHI: The foreign exchange reserves held by the central bank continued to spiral downwards as they decreased 3.07% on a weekly basis, according to data released on Monday. The drop in reserves raises concern about Pakistan’s ability to meet its financing requirements as the reserves have fallen below the $9.5-billion mark. On September 14, the foreign currency reserves held by the State Bank of Pakistan (SBP) were recorded at…Read More

 

Turkish firm to invest $330m in setting up plant in Pakistan

The Express Tribune (Sep 23, 2018)

FAISALABAD: A Turkey-based fast-moving consumer goods company (FMCG) – Hayat Kimya – has planned an investment of $330 million in Pakistan for setting up a manufacturing unit for hygiene products. Hayat Kimya is making the ninth largest investment in Pakistan and has started work at the Faisalabad Industrial Estate Development and Management Company (FIEDMC). It has acquired 100 acres of land to install a mega state-…Read More

 

Philip Hammond’s room for budget splurge trimmed as spending rises in August

The Telegraph by Tim Wallace (Sep 21, 2018)

Philip Hammond will be under more pressure in his Budget as Government borrowing jumped in August, with slower growth in tax receipts and higher spending worsening what had been a rosy picture. The deficit was £6.8bn last month, the Office for National Statistics said, up £2.4bn compared with August 2017. It ends the recent trend of falling borrowing, which has brought down the deficit for this financial year to £17.8bn, £7.8bn lower than the same period ..Read More

 

Remedial paths for the Brazilian economy

The Express Tribune (Sep 20, 2018)

In one sentence, the Brazilian economy seems to be suffering from lack of productivity yet an excessive public sector. On the one hand, the run-of-the-mill performance of productivity in Brazil in recent decades has limited its GDP growth potential. On the other, the excessive expansion of public spending has become progressively unsuited with such limits in the potential expansion of GDP, particularly since productivity has not been…Read More

 

In August 2018: Current account deficit contracts 72% due to drop in imports

The Express Tribune (Sep 20, 2018)

KARACHI: Pakistan’s current account deficit (CAD), a major source of concern for the past couple of years, surprisingly narrowed down 72% to $600 million in August 2018 compared to the previous month because of a notable drop in imports. The deficit – which is the outcome of higher expenditures in foreign currencies than the earnings – stood at $2.12 billion in the previous month of July, the State Bank of Pakistan (SBP) reported on Wednesday. …Read More

China to penalize $60 billion of US imports in tit-for-tat move

The Express Tribune (Sep 19, 2018)

WASHINGTON/BEIJING: China and the United States plunged deeper into a trade war on Tuesday after Beijing added $60 billion of US products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods. The tit-for-tat measures are the latest escalation in an increasingly protracted trade dispute between the world’s two largest economies. On Monday, the US administration …Read More

Pakistan eyes $8b investment from China, Saudi Arabia

The Express Tribune (Sep 18, 2018)

ISLAMABAD: Pakistan eyes nearly $8 billion investment from China and Saudi Arabia, under the China-Pakistan Economic Corridor (CPEC), in road, energy and oil sectors, after the new government decided to pick schemes on their ‘merits’. Decisions are being taken after the Pakistan Tehreek-e-Insaf (PTI) government completed its internal review of the multibillion dollar strategic initiative and came to a decision to open the corridor for investment …Read More

 

Sindh cuts development budget by Rs24b

The Express Tribune (Sep 18, 2018)

KARACHI: The Sindh government has decided to cut the province’s development budget by Rs24 billion, citing financial constraints in view of the shortfall in federal transfers. The announcement came during the unveiling of the provincial budget for the remaining nine months of the fiscal year, 2018-19, at the Sindh Assembly on Monday. Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of the finance ……Read More

 

Future of the economic, monetary union

The Times of Malta (Sep 18, 2018)

On September 14, the European Commission Representation in Valletta, in collaboration with the Central Bank of Malta, hosted the conference entitled: The Economic & Monetary Union: how has Malta benefitted and what does the future hold? Following the outbreak of the economic and financial crisis, the European Union took unprecedented measures to strengthen the Economic and Monetary Union (EMU) and make sure that Europe is better Read More

 

PTI govt unveil Rs5.3tr revised ‘status quo’ budget

The Express Tribune (Sep 18, 2018)

ISLAMABAD: The Pakistan Tehreek-e-Insaf’s (PTI) newly elected government has unveiled Rs5.3 trillion revised budget for this fiscal year but its ‘emergency’ measures lack the ideological shift that is needed to document the growing informal economy and spur economic growth to create jobs. Presenting the Finance Supplementary (Amendment) Bill 2018 on Tuesday in the National Assembly, Finance Minister Asad Umar claimed that the mini-budget will…Read More

 

New Govt to propose Mini Budget for FY 2018-19

Pro Pakistani (Sep 18, 2018)

Pakistan Tehreek-e-Insaf (PTI) is set to present the revised budget for FY2018-19 on Tuesday, September 18 which is being drafted keeping in mind the macroeconomic realities and the unrealistic approach by the previous government in order to gain momentum for the elections. Earlier it was going to be presented on Friday, 14 September before the Parliament, however, the session has been postponed till next week due to the death of former First...…Read More

 

UK economy will shrink without Brexit deal: IMF

The Express Tribune (Sep 17, 2018)

MOSCOW: Britain’s economy will shrink if the country leaves the European Union next year without a Brexit deal and any deal will leave the country financially worse off than staying in, the International Monetary Fund (IMF) said on Monday. The IMF said it expected Britain’s economy to grow by about 1.5% a year in 2018 and 2019 if a broad Brexit agreement was struck, compared with about 1.75% if it had stayed in...…Read More

 

Tough mini-budget may affect PTI’s vote bank

The Express Tribune (Sep 17, 2018)

ISLAMABAD: Opposition parties may cash in on the tough measures likely to be introduced by the government in the upcoming mini-budget, political pundits insist. The government is scheduled to announce mini-budget tomorrow (Tuesday) which, according to these pundits, is not an opportune time in view of the upcoming by-elections on 37 general seats, including 11 in the National Assembly, 13 in Punjab Assembly, nine in Khyber-.…Read More

 

FDI drops 35% as investors wait for economic policy changes

The Express Tribune (Sep 15, 2018)

KARACHI: Foreign investors largely remained shy of driving up investments in Pakistan’s economy as they waited for clarity on economic policies to be announced shortly by the new government. Foreign direct investment (FDI) dropped 35% to $160.1 million in August compared to $246.8 million in the same month of previous year, the State Bank of Pakistan (SBP) reported on Friday. “Foreigners are determined to invest in Pakistan at…. Read More

 

Budget Study Centre Issue 23
Sep 13, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

Govt aims to cut privileges in mini budget

The Express Tribune (Sep 13, 2018)

ISLAMABAD: The government has postponed the National Assembly session that it had convened to present mini-budget till next week, amid plans to withdraw tax free privileges being availed by the president, governors and federal ministers. “The decision to present the revised Finance Bill in the National Assembly on Friday has been deferred due to the funeral of Begum Kulsum Nawaz,” Finance Minister Asad Umar told The Express Tribune .…Read More

 

Foreign investors seek review of CPEC, free trade deals

The Express Tribune (Sep 13, 2018)

ISLAMABAD: An advocacy group of multinational companies working in Pakistan has advised the government to review the China-Pakistan Economic Corridor (CPEC) and free trade agreements (FTA) in order to provide a level playing field for all stakeholders. The Overseas Investors Chamber of Commerce and Industry (OICCI) has made these recommendations to Finance Minister Asad Umar. Foreign investors have.…Read More

 

Business Advisory Council on the cards

The Express Tribune (Sep 12, 2018)

ISLAMABAD: Minister for Finance and Revenue Asad Umar said on Tuesday that the government was holding consultation for setting up the Business Advisory Council to establish direct liaison between the government and business community in a bid to make Pakistan a regional hub for investors. Speaking to a delegation of the Overseas Investors Chamber of Commerce and Industry (OICCI), led by its President Irfan Wahab Khan, Umar said latest.…Read More

 

Balochistan cabinet approves Rs8b plan to bloster levies

The Express Tribune (Sep 12, 2018)

QUETTA: The cabinet of Chief Minister Jam Kamal on Tuesday approved a Rs8 billion plan for the restructuring and strengthening of Levies Force, to be completed in four phases. The provincial cabinet took the decision after reviewing the recommendation made by the Levies DG. Briefing the cabinet members, the DG Levies said the force needed modern training to handle the security challenges, especially in the remote …..…Read More

 

Trade deficit shrinks as exports grow faster than imports

The Express Tribune (Sep 12, 2018)

ISLAMABAD: Pakistan’s trade deficit shrank to $6.2 billion in first two months of the current fiscal year as the pace of growth in exports beat the increase in imports, indicating government’s administrative measures have started yielding results. The trade deficit for July-August was 1.3% lower than the deficit recorded in the same period of previous fiscal year, reported the Pakistan Bureau of Statistics (PBS) on Tuesday.…Read More

 

Govt set to deprive salaried employees of tax relief in mini budget

The Express Tribune (Sep 12, 2018)

The government has decided to introduce a mini budget with the prices of several items expected to rise. It was decided that major amendments will be made to the finance bill in an attempt to increase revenue generation. The summary of the mini-budget has been prepared and is set to be presented during the federal cabinet meeting. After the approval of the summary, the mini-budget will be shared in the National Assembly on September 14.…Read More

 

French 2018 budget deficit to rise, but respect EU limit

The Business Recorder (Sep 11, 2018)

PARIS: France’s budget deficit will rise next year but stay below the European Union’s limit of 3 percent of economic output, according to figures given by Finance Ministry officials on Tuesday. Next year’s budget, which is due to be published at the end of this month, foresees the public deficit rising to 2.8 percent of gross domestic product next year after 2.6 percent this year, the ministry officials said. Respecting the EU deficit limit is the cornerstone of President …Read More

 

CPEC is Pakistan’s economic future, says Gen Qamar

The Express Tribune (Sep 11, 2018)

ISLAMABAD: A day after a controversial interview of a key government adviser cast doubts over future of the China-Pakistan Economic Corridor (CPEC) project, army chief General Qamar Javed Bajwa assured the Chinese envoy that the CPEC is Pakistan’s economic future and its security will not be compromised. The assurance came during Gen Qamar’s meeting with the Chinese ambassador, who visited the General Headquarters (GHQ) in Rawalpindi …Read More

 

IMF’s staff-level team to arrive by month-end

The Express Tribune (Sep 11, 2018)

Prime Minister Imran Khan reconstituted the Economic Advisory Council (EAC) on September 1 to resolve the economic crisis of the country. Chaired by the PM himself, the 18-member economic council aims to function as a regulatory body which will advise the government on both “short-term macroeconomic stabilisation interventions” and “long-term structural reforms for stable and sustained economic development”. …Read More

UK growth will slow to 1.3% amid Brexit uncertainty- KPMG

The Guardian (Sep 10, 2018)

A sharp fall in consumer spending and business investment is expected to drag Britain’s growth rate down to just 1.3% this year, dispelling hopes that the UK’s sluggish rate of expansion in the first six months will recover in the second half of the year. According to the consultancy KPMG, Brexit uncertainty will take a bigger toll on the economy than many forecasters, including the Bank of England, expect following a slump in consumer …Read More

Trump threatens new tariffs on $267bn of Chinese goods

The Guardian (Sep 8, 2018)

Donald Trump has said he has a new tranche of tariffs ready to place on virtually all Chinese goods, as Apple warned the trade war will make its products more expensive for American consumers. A package of tariffs was already close to being imposed on $200bn worth of Chinese goods imported to the US, Trump said, while suggesting a further package, worth $267bn, could also be imposed, which would sharply …. …Read More

 

Govt to revise ‘unrealistic’ annual budget

The Nation (Sep 7, 2018)

ISLAMABAD - In a major decision, the PTI-led federal government has decided to revise the annual budget for the ongoing fiscal year what the government termed unrealistic. The government disclosed it during a meeting of newly-formed Economic Advisory Council (EAC), which met under the chair of Prime Minister Imran Khan. The meeting was attended by independent economists as well as heads of economic ministries and…Read More

 

Italy’s top ministers look to reassure markets over 2019 budget

The Times of Malta (Sep 5, 2018)

Italy's top ministers issued a barrage of statements on Wednesday to reassure financial markets over the government's forthcoming budget, promising to keep state accounts in check and maintain economic stability. The concerted charm campaign helped push Italian bond yields to their lowest in almost a month, as hopes grew that the coalition, comprising the rightist League and anti-establishment 5-Star Movement, would respect European Union budget discipline. "Clearly we will not do everything …Read More

 

No woman made the cut for PM Khan’s economic advisory council?

The Pakistan Today (Sep 3, 2018)

Prime Minister Imran Khan reconstituted the Economic Advisory Council (EAC) on September 1 to resolve the economic crisis of the country. Chaired by the PM himself, the 18-member economic council aims to function as a regulatory body which will advise the government on both “short-term macroeconomic stabilisation interventions” and “long-term structural reforms for stable and sustained economic development”. …Read More

 

US economy grows in Q2 at fastest rate in nearly four years

The Times of Malta (Sep 2, 2018)

US second quarter economic growth was stronger than previously estimated, as gross domestic product (i.e. the value of all goods and services produced across the economy) rose at a 4.2 per cent annual rate, according to a report by the Commerce Department. This marked the strongest growth rate in nearly four years. The agency had earlier estimated the second-quarter growth at a 4.1 per cent annual rate. Economists expected an unchanged …Read More

 

Deal on free trade pact likely in Nov

The Express Tribune (Sep 2, 2018)

SINGAPORE: Broad agreement is expected to be reached at a leaders’ summit in Singapore in November, the city-state’s trade minister said on Saturday. The 16-nation Regional Comprehensive Economic Partnership, which will cover about half the world’s population and a third of its GDP, has taken centre stage as Washington embarks on a unilateral, protectionist agenda. The RCEP is backed by China and notably excludes the US, which had been leading another.…Read More

 

FBR’s tax collection grows 14% to Rs506 billion

The Express Tribune (Sep 01, 2018)

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs506 billion in taxes in the first two months of the current fiscal year as the government scrambles to search for new avenues for revenue receipts in an attempt to reduce the projected budget deficit to less than 5% of the national economy. Provisional tax collection in July-August FY19 stood at Rs506 billion, according to FBR officials. It was Rs62 billion or 14% higher than the …Read More

 

Pakistan needs $9b for running domestic economy: Umar

The Express Tribune (Aug 31, 2018)

ISLAMABAD: Pakistan needs $9 billion to run the country’s economic affairs, Finance Minister Asad Umar told the Senate on Friday He said Pakistan was facing an adverse economic situation because of flawed policies of previous governments. “We are deliberating on (various) options. We will map out a plan over the next few days and we will share it with the parliament,” the finance minister said. The parliament, he said, would decide whether or not the..…Read More

 

FBR reforms to be discussed in next cabinet meeting

The DAWN by Mubarak Zeb Khan (Aug 28, 2018)

ISLAMABAD: The government is gearing up to launch a drastic reform plan for the Federal Board of Revenue (FBR) with the objectives of enhancing revenue collection and promoting equity and transparency in the tax machinery. Dawn has learnt that the plan is in advanced stages, but nobody at the FBR is aware of it. “We have moved a summary to the cabinet for introducing reforms in the FBR” Finance Minister Asad Umar told Dawn on Monday. The cabinet is.…Read More

 

Balochistan’s budget deficit quandary

The DAWN by Nasir Jamal (Aug 27, 2018)

FINANCING its large budget deficit of approximately Rs62 billion for the present financial year remains the main concern of the new Jam Kamal Khan government in Balochistan, says a senior provincial official. “We are facing a big hole in our planned public development investment for the ongoing fiscal year,” Qamar Masood, Balochistan’s finance secretary, told this correspondent from Quetta over the telephone. “We don’t have a solution.…Read More

 

Budget deficit widens to record Rs2.26tr in FY18

The Express Tribune (Aug 26, 2018)

ISLAMABAD: Pakistan booked the highest-ever budget deficit of Rs2.26 trillion in the last fiscal year due to expansionary fiscal policies in an election year and poor performance of tax machinery, throwing the country into a deeper debt trap. In its annual consolidated federal and provincial budgetary operations report, the Ministry of Finance reported that the budget deficit widened to Rs2.26 trillion in fiscal year..…Read More

 
Budget Study Centre Issue 22
August 23, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

US and China escalate trade war as total sum levied reaches $100bn

The Guardian (Aug 23, 2018)

The US and China have escalated their ongoing trade war by implementing 25% tariffs on $16bn worth of imports on both sides, bringing the amount levied to a combined $100bn (£78bn) since July. Beijing began implementing the new tariffs on Thursday, when the US said it would begin collecting extra duties in retaliation for what it claimed were unfair Chinese trade practices. “China firmly opposes [the US tariffs] and has to continue to make…….…Read More

 

Current account deficit balloons by 14pc

The Nation (Aug 22, 2018)

KARACHI/ISLAMABAD - The current account deficit of the country ballooned by 14 percent in July 2018. The current account deficit expanded to $2.2 billion in July 2018 as compared with the deficit of $1.93 billion in the corresponding period of the last fiscal year. During 2017-18, the current account deficit amounted to $18 billion. As a percentage of GDP, current account deficit stands at a negative 8.6% of the GDP, while during the same month last year, current account deficit accounted for a negative 7.1% of the GDP. …Read More

 

US-Turkey feud: Trump vows no concessions as lira stays under

The Express Tribune (Aug 22, 2018)

ISTANBUL: The Turkish lira weakened against the dollar on Tuesday after US President Donald Trump said he would give Ankara no concessions in return for the release of a detained American pastor, the latest salvo in a worsening rift between the Nato allies. In an interview with Reuters, Trump criticised Turkey on Monday over the detention of evangelical Christian pastor Andrew Brunson and said he was not concerned that his tough stance against Turkey could end up …Read More

 

Germany’s current account surplus hits global high

The Daily Star (Aug 21, 2018)

Germany's current account surplus is set to remain the world's largest this year despite increased trade tensions, the Ifo institute said on Monday, in an estimate likely to renew criticism of Chancellor Angela Merkel's fiscal policies. The International Monetary Fund and the European Commission have for years urged Germany to do more to lift domestic demand and imports as a way to reduce global economic imbalances and stimulate.…Read More

 

Rs1.9 trillion of liabilities & receivables would need restructuring by new govt: Report

The Pakistan Today (Aug 20, 2018)

ISLAMABAD: As the Pakistan Tehreek-e-Insaaf (PTI) takes the reins of government this week, it is projected it would need to restructure Rs1.9 trillion worth of liabilities and receivables of government-owned entities. The new government, according to a senior government official would require making adjustments and administer write-offs besides employment various kinds of borrowing to clean the slate in terms of debt and liabilities of loss-making.…Read More

 

New govt has host of options to bridge financing gap

The Express Tribune (Aug 20, 2018)

LAHORE: After a round of political somersaults, the new government is in place. It is hoped that the picture gets clear and the government will follow its path in due course. The new political dispensation has inherited an economy which is in a better shape. However, the growing real economy requires huge financial doses since exports are unable to cover imports. Multilateral institutions, economists and media experts are coming up with their estimates.…Read More

 

Improving economy, living standards main mission for govt: Asad Umar

The Pakistan Today (Aug 19, 2018)

ISLAMABAD: The nominated Finance Minister Asad Umer has said that improving the living standards of people and the economy is the main mission of Pakistan Tehreek-e-Insaf’s (PTI) democratically elected government. Talking to a news channel, he said it was a big challenge for the PTI government to ensure the provision of all basic amenities of life to the masses. “We will have to create job opportunities for unemployed youth, “ he ..…Read More

 

Circular debt of Rs1.1tr passed on to new govt

The Express Tribune (Aug 18, 2018)

ISLAMABAD: Though the previous Pakistan Muslim League-Nawaz (PML-N) government claimed to have brought about improvement in power production, it still passed on a gigantic circular debt of Rs1.148 trillion to the new government of Pakistan Tehreek-e-Insaf (PTI), which faces a bumpy road ahead. The PML-N had come up with a slogan in 2013 that it would bring load-shedding to an end during its five-year tenure. It solely focused on setting up thermal…..…Read More

 

Pakistan asked to make terror financing money laundering extraditable offences

The Express Tribune (Aug 18, 2018)

ISLAMABAD: The Asia Pacific Group (APG) on Money Laundering on Wednesday urged Pakistan to enact appropriate laws, enabling local officials to act upon requests of foreign countries to freeze illegal assets and making terrorism financing and money laundering extraditable offences. Pointing out deficiencies in Pakistan’s legal framework, the visiting APG team pointed out that this could hamper Pakistan’s effective response on requests. …Read More

Could Turkey’s financial crises have a snowball effect on world markets?

The Washington Post (Aug 17, 2018)

Investors might be watching the financial crisis in Turkey and wondering: How could it affect me? An economic virus spreading outward from Turkey and through other markets is unlikely, experts say, but it could happen. In one scenario, European banks that had lent money in the Turkish public and private sectors would face a credit squeeze if Turkey could not make its loan payments. The Turkish lira, its currency, would continue to drop in value against …Read More

Pakistan foreign debt and liabilities surged 14 percent in FY18, touch $95.097 billion

The Pakistan Today (Aug 16, 2018)

KARACHI: Pakistan’s foreign debt and liabilities surged 14 percent, touching $95.097 billion for FY18, data released by the State Bank of Pakistan (SBP) revealed. At end of FY17, the external debt and liabilities had been recorded at $83.431 billion, as the country faces problems to meet its external financing requirement, reported The News. During FY18, Pakistan paid off $7.479 billion in external debt servicing, falling 8.19 percent from FY17. In FY17, the foreign debt servicing in …Read More

 

Pakistan’s debt, liabilities swell 83% to Rs 30tr.

The Express Tribune (Aug 16, 2018)

ISLAMABAD: Pakistan’s debt and liabilities rose sharply to nearly Rs30 trillion or 87% of total size of the economy at the end of previous fiscal year, largely due to the last government’s expansionary fiscal policies and its failure to reform tax administration. Statistics released by the State Bank of Pakistan (SBP) on Wednesday showed that in the last five years, the country’s total debt and liabilities increased Rs13.5 trillion or 82.8% to stand at Rs29.9 trillion. …Read More

 

India’s July trade deficit widens to more than five year high of $ 18.2 billion: Trade ministry

The Hindustan Times (Aug 14, 2018)

India’s trade deficit widened to a more than five year high of $18.02 billion in July, the trade ministry said on Tuesday, driven largely by a surge in oil imports. Though merchandise exports rose 14.32 percent year-on-year in July, the trade deficit widened as oil imports surged 57.41 percent to $12.35 billion. In June, the trade deficit stood at $16.6 billion. Merchandise exports last month rose to $25.77 billion from a year ago, while imports rose 28.81 percent to …Read More

 

Why has the Turkish lira slumped to a record low?

The Independent (Aug 14, 2018)

The Turkish lira has slumped to a record low against the US dollar this week. On Friday it was down by as much as 17 per cent before recovering slightly. What’s driving it down? And what does it mean for Turkey and others? At one stage on Friday afternoon one dollar bought 6.9 lira. In January a dollar bought just 3.7 units of the Turkish currency. That means it has lost around 44 per cent of its value against the dollar this year. The lira is now the world’s worst …Read More

 

German economy accelerates in second quarter

The Wall Street Journal (Aug 14, 2018)

FRANKFURT—Germany’s economic growth accelerated in the second quarter, ensuring the eurozone as a whole avoided a slowdown, but economists said global trade tensions and a currency crisis in Turkey are clouding the outlook for businesses. Germany’s gross domestic product grew at a quarterly rate of 0.5%, or 1.8% in annualized terms, the Federal Statistical Office said Tuesday. It also raised its first-quarter growth estimate to an annualized 1.5%.. Read More

 

Italy PM, ministers discuss 2019 budget, agree it must cut debt

The Times of Malta (Aug 14, 2018)

Italian Prime Minister Giuseppe Conte and his top ministers discussed the 2019 budget on Monday and agreed that it would preserve the stability of state finances and lower the public debt, the prime minister's office said. Conte assessed the economic situation and the budget with Economy Minister Giovanni Tria and the heads of the League and the 5-Star Movement, the two parties that make up the ruling coalition, the statement said. The budget, …Read More

 

India’s July trade deficit widens to more than five year high of $18.02 billion: Trade ministry

The Hindustan Times (Aug 14, 2018)

India’s trade deficit widened to a more than five year high of $18.02 billion in July, the trade ministry said on Tuesday, driven largely by a surge in oil imports. Though merchandise exports rose 14.32 percent year-on-year in July, the trade deficit widened as oil imports surged 57.41 percent to $12.35 billion. In June, the trade deficit stood at $16.6 billion. Merchandise exports last month rose to $25.77 billion from a year ago, while imports rose 28.81 percent to …Read More

 

Turkish financial crises sends fear through global financial markets from India to Hong Kong

The Independent (Aug 14, 2018)

Turkey’s descent into economic crisis roiled global financial markets on Monday. The lira slumped to as low as 7.19 to the dollar on Sunday, down from from 6.4 at the end of last week, when the US hit the country with a doubling of steel tariffs. On Monday morning the Turkish currency was still trading at only 6.84, more than 25 per cent lower than seven days earlier and around 45 per cent down since the start of the year. The country’s …Read More

 

PTI insist IMF is a ‘fallback’

The DAWN by Nasir Jamal (Aug 13, 2018)

ASAD Umar, the man expected to get the most important job of bringing the faltering economy back on its feet in the incoming Pakistan Tehreek-i-Insaf (PTI) government, views an International Monetary Fund (IMF) bailout as a “fallback option”. He does not rule out the possibility of knocking at the door of the lender for its dollars to prop up the depleting foreign currency reserves and avert the impending balance-of-payment crisis, …Read More

 

German industrial output declines in June

The Times of Malta (Aug 12, 2018)

German industrial production declined in June by slightly more than expected, led by a sharp drop in construction output. Total industrial output (which comprises output in manufacturing, energy and construction) fell by 0.9 per cent from May, according to the German economics ministry. Economists had expected a 0.4 per cent decline. However, compared with the same month last year, total production rose by a calendar-…....Read More

 

Agriculture sector will need Rs 1.52tr in FY19: SBP

The Express Tribune (Aug 12, 2018)

KARACHI: The State Bank of Pakistan (SBP) has estimated that the agriculture sector would require Rs1.52 trillion during the current fiscal year and has assigned banks to lend at least Rs1.25 trillion in FY19. “The overall disbursement target of Rs1,250 billion has been assigned to banks, which is 82% of the total estimated agri-credit requirement of Rs1,519 billion,” SBP said in a statement on Saturday. Banks must overcome their infrastructure.…Read More

 

Agriculture sector will need Rs 1.52tr in FY19: SBP

The Express Tribune (Aug 12, 2018)

KARACHI: The State Bank of Pakistan (SBP) has estimated that the agriculture sector would require Rs1.52 trillion during the current fiscal year and has assigned banks to lend at least Rs1.25 trillion in FY19. “The overall disbursement target of Rs1,250 billion has been assigned to banks, which is 82% of the total estimated agri-credit requirement of Rs1,519 billion,” SBP said in a statement on Saturday. Banks must overcome their infrastructure.…Read More

 

Remittances surge 25%, amount to $1.93b

The Express Tribune (Aug 11, 2018)

KARACHI: In a positive development, the remittances received from overseas Pakistanis rose markedly in July 2018, according to data released by the central bank on Friday. Remittances stood at $1.93 billion in the first month of fiscal year 2019, up 25.17% compared to $1.54 billion in the same month of previous year. The inflows were 21.03% higher than the money remitted in June 2018. Remittances touch seven-month high at $1.77 billion in March.…Read More

 

Forex reserves stand at $17b

The Nation (Aug 10, 2018)

KARACHI - Total liquid foreign reserves of the country stand at $17 billion, says State Bank of Pakistan (SBP). According to SBP's weekly statement issued on Thursday, the foreign reserves held by the State Bank on August 03, amounted to $10,369.1 million. Whereas, the net foreign reserves with commercial banks were $ 6,635.9 million. During the week ending August 03, SBP's reserves increased by $19million to $10,369 .….Read More

 

Overseas Pakistanis remit $1.93 billion in the first month of FY19

The News (Aug 10, 2018)

KARACHI: The Overseas Pakistani workers remitted $ 1929.76 million in the first month of FY19 as compared with US $ 1541.67 million received during the same period in the preceding year. A report issued by State Bank Pakistan (SBP) here Friday, said that during July 2018, the inflow of worker's remittances amounted to $1929.76 million, which is 21.03 percent more than June 2018 and 25.17 percent more than July 2017.The country wise details for….Read More

 

Wheat worth $236.3 million exported in FY 2017-18

The Daily Times (Aug 09, 2018)

About 1.189 million metric tons of wheat worth $ 236.339 million were exported during 12 months of fiscal year 2017-18 as compared the exports of 3,937 metric tons valuing $ 1.038 million of corresponding period of lat year. During the period from July-June,2017-18, local export of wheat witnessed about 22,668.89 percent growth as compared the exports of the same period of last year, according the data of Pakistan .…Read More

 

Pakistan plans to borrow $4bn loan from IDB: Report

The News (Aug 09, 2018)

ISLAMABAD: Pakistan is planning to borrow over $4 billion from Islamic Development Bank (IDB) to bail out its economy, which is facing a balance-of-payments crisis. Financial Times reported that Saudi-backed IDB has agreed to make a formal offer to lend Pakistan the money after formation of new government. According to the report, Pakistan moves to restore its currency reserves when prime minister-in-waiting Imran Khan takes over.…Read More

 

‘GDP growth likely to decline if Pakistan leaves IMF programme’

The Daily Times (Aug 09, 2018)

KARACHI: Pakistan will possibly suffer if it leaves International Monetary Fund (IMF) programme given the multifarious economic difficulties to balance macro and micro situation on more than one count. Asad Umar, the next proposed finance minister of the country, had already indicated that it was inevitable to go for an IMF bailout package to around $15-$20 billion in order to support shambling economy on immediate basis. Also, interim Finance.…Read More

 

Japan’s economy revs up again after stalling

The Wall Street Journal (Aug 09, 2018)

TOKYO—Japan returned to solid growth in the April-June quarter, a trend economists said was likely to continue on the back of higher wages and consumer spending unless trade conflicts with the U.S. worsen. The world’s third-largest economy expanded at an annualized pace of 1.9% in the second quarter of 2018 after a revised 0.9% contraction in the first quarter, which ended the longest stretch of growth in 28 years..…Read More

 

Budget Study Centre Issue 21
August 08, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

Pakistan defends its economic partnership with China

The News (Aug 08, 2018)

Islamabad - Pakistan Wednesday defended its economic partnership with China, amid fears that the terms of opaque multi-billion dollar investments by Beijing could be exacerbating Islamabad's economic woes as it considers a fresh IMF bailout. "We have noted recent media reports questioning the viability of China Pakistan Economic Corridor (CPEC), claiming that it would create an unbearable debt burden for Pakistan,".…Read More

 

Brazil July inflation slows as impact of truckers’ strike fades

The Business Recorder (Aug 08, 2018)

BRASILIA: Inflation in Brazil slowed for the first time in two months in July as the impact of a May nationwide truckers’ strike dimmed, reinforcing the view that a recent price spike would not last long. Consumer prices tracked by the benchmark IPCA index rose 4.48 percent in the 12 months through July, government statistics agency IBGE said on Wednesday, slightly above the median 4.40 percent forecast of economists in a Reuters poll. That is a bit ……Read More

 

Pakistan to decide whether to seek IMF bailout ‘by September’

The Daily Times (Aug 08, 2018)

Pakistan must decide by the end of September if it will go to the IMF to bail out its economy, which is facing a balance-of-payments crisis, the likely new finance minister Asad Umar said Tuesday. “By the end of September, we should make our decision,” the Pakistan Tehreek-e-Insaf (PTI) leader said. Umar, who is widely tipped to become the next finance minister, reiterated his stance that Pakistan was examining other options as well as the.…Read More

 

Turkey under pressure to raise interest rates as economic crises looms

The Guardian (Aug 07, 2018)

Turkey is facing mounting pressure to announce an emergency rise in interest rates as rampant inflation, a plunging currency and American sanctions pushes one of the world’s key emerging market countries to the brink of crisis. Analysts said Turkey’s central bank would have no choice but to increase borrowing costs aggressively in the coming days to stem the fall in the lira, which is down by almost a third against the US dollar in the …Read More

 

Yuan weakens 3.4% in July

The China Daily (Aug 04, 2018)

BEIJING - China's yuan weakened more than 3 percent against a basket of currencies in July, according to a China Foreign Exchange Trade System (CFETS) index. The CFETS RMB Index, which measures the yuan's strength relative to a basket of currencies, came in at 92.41 at the end of July, a 3.4 percent decline from a month ago, CFETS said. The index compares the yuan to the value of 24 currencies, including the US dollar, euro and Japanese …Read More

 

Budget 2018-19 is a ‘farce’ says finance minister

The Daily Times (Aug 03, 2018)

Islamabad: Interim Finance Minister Shamshad Akhtar on Thursday termed the Budget 201819 presented by the former Pakistan Muslim League-Nawaz government “unrealistic”. Speaking to media, Akhtar said that facts and figures in the budget were a matter of “concern”. She also commented on the prevalent economic conditions, saying that work on the International Monetary Fund (IMF) project was underway and the incoming government...…Read More

 

Sri Lanka secures $1 billion Chinese loan

The News (Aug 03, 2018)

COLOMBO: Sri Lanka´s central bank on Friday announced it had secured a $1 billion Chinese loan as the island, a key link in Beijing´s ambitious Belt and Road initiative, develops closer relations with Asia´s largest economy. Central bank Governor Indrajit Coomaraswamy said that first half of the loan will be released later this month and the balance will be received in October. "During consultations (with the Chinese over the loan) it was clear that they ……Read More

 

Bank of England raises interest rates to 0.75%

The Guardian (Aug 02, 2018)

The Bank of England has raised interest rates above the emergency level introduced after the financial crisis despite mounting fears about the economic impact of Britain crashing out of the EU without a deal. Citing concern that the lowest unemployment rate since the mid-1970s risked re-igniting wage pressure, Threadneedle Street raised interest rates to 0.75% from 0.5% – the level they were dropped to in March 2009 as the economy lurched ……Read More

 

Inflation touches 45-month high at 5.8%

The Business Recorder (Aug 02, 2018)

ISLAMABAD: Inflation has touched a high of three years and nine months at 5.8% in July with the Pakistan Bureau of Statistics (PBS) remaining unable to introduce a new more representative methodology of prices due to lack of administrative approvals. Measured by the Consumer Price Index, the average rate of increase in prices of 40 dozen items stood at 5.83% in July, reported the national data collecting agency on Wednesday. It is the highest....…Read More

Circular debt has soared to Rs 566bn, senate body told

The Daily Times (Aug 02, 2018)

ISLAMABAD: A legislative body of the Upper House of parliament was informed on Wednesday that circular debt of the country had soared to Rs 566 billion. Technical and distribution losses, less recovery, nonpayment of subsidies and K-Electric payment were few reasons for accumulation of the circular debt, the Senate Special Committee on Circular Debt, which meet under the chairmanship of Senator Shibli Faraz, was told. Shibli Faraz said that. Read More

Foreign exchange: In a major relief, SBP’s reserves surge 15% to $10.35b

The Express Tribune (Aug 02, 2018)

KARACHI: In an interesting turn of events, the foreign exchange reserves held by the central bank have increased by a massive 14.86% on a weekly basis, according to data released on Thursday. The development came after China announced that it would immediately give a $2-billion loan to Pakistan, a move meant to arrest the slide in official foreign currency reserves and provide much-needed breathing space to the new government. Read More

 

US opposes IMF bailout for Pakistan

The Express Tribune (Aug 01, 2018)

ISLAMABAD: A day after US Secretary of State Mike Pompeo warned against any International Monetary Fund (IMF) bailout that helps China, Pakistan has vowed that ‘third parties’ cannot weaken its resolve as it undertakes its biggest infrastructure and energy development plan with the help of Beijing. The $60 billion China-Pakistan Economic Corridor (CPEC), one of Beijing’s undertakings in its aggressive Belt and Road Initiative (BRI), has seen China extend ...…Read More

 

India’s April-June fiscal deficit at 68.7pc of FY target

The Business Recorder (July 31, 2018)

NEW DELHI: India reported on Tuesday a fiscal deficit of 4.29 trillion rupees ($62.57 billion) for April-June, or 68.7 percent of the budgeted target for the current fiscal year compared with 80.8 percent a year ago. Net tax receipts in the first quarter of 2018/19 fiscal year that ends in March 2019 were 2.37 trillion rupees, government data showed. India expects to trim the deficit to 3.3 percent of GDP this fiscal year, after meeting an upwardly revised fiscal deficit...…Read More

 

Dist council approves Rs 1.5bn budget

The DAWN (July 31, 2018)

OKARA: The district council in its annual budget session for 2018-19 approved annual estimated budget worth Rs1.5 billion, including expected income of Rs800.34 million as well as previous year’s balance of Rs250 million. These estimates also comprise provincial grant worth Rs480.8 million under Provincial Finance Commission (PFC) Award and local income of Rs272.5 million. The annual expected expenditures is Rs1.3 billion, including ...…Read More

 

Deficit reaches €142m in first six m

The Times of Malta (July 27, 2018)

The deficit reached €141.9 million in the first six months of the year, with the government spending considerably more than the additional revenue it received. In June 2017, the deficit was €92 million. Revenue went up by 3.8 per cent to €1.89 billion, mostly due to higher income from income tax and social security. However, total spending went up by 6.2 per cent to €2.04 million, spread across both recurrent expenditure.…Read More

 

Budget Study Centre Issue 20
July 26, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts

 

Value of Japan’s ‘sharing economy’ estimated at over ¥500 billion in 2016

The Japan Times (July 26, 2018)

Japan’s so-called sharing economy was estimated to be worth over ¥500 billion ($4.5 billion) in 2016, according to government data, reflecting the rise of peer-to-peer services. Such services, which are not included when calculating gross domestic product, would boost Japan’s ¥548.7 trillion economy by tens of billions of yen, according to a Cabinet Office report released Wednesday. The report breaks the sharing economy down into four categories.…Read More

 

Will the heat wave help or hurt the UK economy?

The Independent (July 26, 2018)

Figures from Nielsen released this week pointed to the strongest UK grocery sales in five years thanks to the heatwave. Separate data from the Kantar Worldpanel also showed supermarket sales spiking over the 12 weeks to the 15 July, with credit given to “the prolonged hot weather”. Yet official data from the Office for National Statistics showed an unexpected fall in retail sales volumes in June, with the agency saying that “consumers.…Read More

 

US want to reduce trade deficit with India soon: Official

The Economic Times (July 26, 2018)

The US wants to reduce its trade deficit with India as quickly as possible, a senior official told lawmakers here, asserting that the Trump administration is aggressively pushing New Delhi on the issues of medical devices, pharmaceuticals, dairy products and agriculture. "The President wants fair and reciprocal trade...when we look at India, there are three sectors where, I think, we can get a significant boost in our trade," Alice G Wells, Principal .…Read More

 

Is change possible for Argentina’s economy?

The Times of Malta by Maria Fenech (July 26, 2018)

Within three months, it was seen that the Argentine peso lost a third of its value relative to the US dollar - nothing new there. Argentina has addressed its social and economic problems with immense state interventionism and deficit spending for seven decades, funded by their printing press. The overall result has always been the same - economic sluggishness and inflation. Now, Argentina has one of the least free economies in the world and some of the world's most..….…Read More

 

Foreign exchange: SBP’s reserves drop by another $53m, stand at $9.01b

The Express Tribune (July 26, 2018)

KARACHI: The size of Pakistan’s economy stood at $313.13 billion at the end of June, 2018, according to provisional figures released on Thursday by the country’s central bank, as a weaker currency took toll on gross domestic product (GDP) in dollar terms. Pakistan’s GDP stood at $304.97 billion at the end of June, 2017, and the economy registered a 13-year high GDP growth rate of 5.8% in FY18. That said, the size of the economy shrunk in dollar terms……Read More

 

Saudi wholesale price index rises 15% in June-GASTAT

The MUBASHER (July 25, 2018)

Riyadh – Mubasher: Saudi Arabia's Wholesale Price Index (Inflation) jumped 15.4% year-on-year during June, General Authority for Statistics (GASTAT) said. The state-run statistics agency attributed the rise to the introduction of the value-added tax (VAT), in addition to adjusting fuel prices as of January 2018. The growth occurred after prices in other goods section surged 34.5% as refined petroleum products’ prices soared 93.9%, while……Read More

 

How the Trump tax cut is helping to push the federal deficit to $1 trillion’

The New York Times by Jim Tankersley (July 25, 2018)

The amount of corporate taxes collected by the federal government has plunged to historically low levels in the first six months of the year, pushing up the federal budget deficit much faster than economists had predicted. The reason is President Trump’s tax cuts. The law introduced a standard corporate rate of 21 percent, down from a high of 35 percent, and allowed companies to immediately deduct many new investments.……Read More

 

PSB’s bad loan rise to 15% of gross advances in FY 18: Govt

The Economic Times (July 24, 2018)

The gross bad loans of public sector banks (PSBs) hit 15 per cent of advances in 2017-18, government said in Parliament today. The gross non-performing assets (NPA) ratio for PSBs stood at 14.6 per cent in 2017-18, minister of state for finance Shiv Pratap Shukla said in Parliament citing data from the Reserve Bank. IDBI Bank topped the list in terms of gross bad loans at 28 per cent of gross advances followed by Indian Overseas Bank (25.3 pc); UCO BankNSE……Read More

 

Bitcoin surpasses $8,000 to hit two-month high

The Hindustan Times (July 24, 2018)

London: Bitcoin, the world’s best-known cryptocurrency, shot past $8,000 on Tuesday for the first time in two months on signs of growing institutional interest in virtual coins. Recent reports about impending approval in the United States for a cryptocurrency exchange traded fund (ETF) have helped bolster demand recently, as have comments by BlackRock’s Chief Executive Larry Fink last week that the world’s biggest investment…Read More

IMF praises Saudi economic reforms

The MUBASHER (July 24, 2018)

Riyadh - Mubasher: The International Monetary Fund (IMF) is expecting Saudi Arabia’s real gross domestic product (GDP) to grow by 1.9% in 2018, with non-oil growth strengthening to 2.3%. Growth is expected to pick-up further over the medium-term as the reforms take hold and oil output increases, the IMF said in a report issued on Monday. Risks are balanced in the near-term, as the employment of Saudi nationals has increased, ….…Read More

Money kept by Indians in Swiss banks fell by 34.5% in 2017: Piyush Goyal tells Parliament

The Hindustan Times (July 24, 2018)

New Delhi: Indian deposits in Swiss banks fell by 34.5% in 2017 and by 80% since the Narendra Modi government came to power in 2014, Finance Minister Piyush Goyal said on Tuesday, citing data from the global body of central banks, the Bank for International Settlements (BIS). He said this in Parliament rebutting last month’s reports, which quoted the Swiss National Bank, the country’s central bank, as saying in its annual report that…….Read More

 

There is no boom or bubble: Bank of England deputy governor defends QE

The Telegraph (July 23, 2018)

Share prices have seen no boom and the housing market has had no hint of a bubble, the Bank of England’s deputy governor has argued. Popular wisdom suggests financial markets have exploded in recent years, pumped up by quantitative easing and ultra-low interest rates. But Ben Broadbent has argued that markets look relatively flat. Instead he believes QE stopped a collapse in prices, rather than forcing them skyward. Average UK house prices on a………..Read More

 

IMP, finance ministry way off on Pakistan’s economic misery

The Express Tribune (July 21, 2018)

ISLAMABAD: The International Monetary Fund (IMF) and Pakistan’s finance ministry have failed to make accurate forecasts about the country’s external sector for the last fiscal year, putting a question mark over the capability of both institutions. Projections of the Washington-based lender for the current account deficit and gross official foreign currency reserves for fiscal year 2017-18 were missed by a huge margin. Its first Post Programme…….Read More

 

HDFC Bank posts 18.02% rise in net profit in first quarter

The Hindustan Times (July 21, 2018)

New Delhi: HDFC Bank Ltd posted a 18.2% rise in first-quarter profit on Saturday on higher interest and fee income, though it missed analysts’ estimates. Net profit rose to 46.01 billion rupees ($669.43 million) for the quarter ended June 30, from 38.94 billion rupees a year ago, India’s second-biggest lender by assets said in a statement. Analysts had on average expected a net profit of 47.66 billion rupees for the bank that has the highest market ..…Read More

 

Japan’s core inflation rate hit 0.8% in June on higher energy costs

The Japan Times (July 20, 2018)

The country’s underlying inflation rate edged up in June amid rising energy costs, government data showed Friday, though it continued to fall short of the Bank of Japan’s 2 percent target. The nationwide core consumer price index, which excludes volatile fresh food prices, rose 0.8 percent in June from a year earlier, picking up from a 0.7 percent rise in May to match market forecasts. The index rose for the 18th consecutive month, up to 101……Read More

 

Pakistan’s borrowing soars to record high at $11.4b

The Express Tribune (July 20, 2018)

ISLAMABAD: Pakistan’s borrowing from foreign sources hit a record high at $11.4 billion in fiscal year 2017-18, which broke a one-year-old record, as reliance on external creditors grew due to mounting debt and a steep decline in foreign exchange reserves. The loans of $11.4 billion, acquired from July 2017 to June 2018, included $500 million in cash injection by China’s State Administration of Foreign Exchange (SAFE), said officials in the...…Read More

 

Trump threatens to hit all $505bn of Chinese imports with tariffs

The Guardian (July 20, 2018)

Donald Trump escalated economic global tensions on Friday, lashing out a range of targets that included the European Union, the Federal Reserve and China, indicating that he is prepared to raise tariffs on Chinese imports from $34bn to cover the entire $505bn of Chinese imports. “I’m willing to go to 500,” he said during a taped interview with the business channel CNBC, an escalation he was prepared to make because it “was the right thing to do for …Read More

 

Size of Pakistan’s economy is $313.13 billion’s says SBP

The Express Tribune (July20, 2018)

KARACHI: The size of Pakistan’s economy stood at $313.13 billion at the end of June, 2018, according to provisional figures released on Thursday by the country’s central bank, as a weaker currency took toll on gross domestic product (GDP) in dollar terms. Pakistan’s GDP stood at $304.97 billion at the end of June, 2017, and the economy registered a 13-year high GDP growth rate of 5.8% in FY18. That said, the size of the economy shrunk in dollar ….…Read More

 

Brexit plan to cost importers £700m a year at the border, HMRC bosses warn

The Telegraph (July 19, 2018)

Importers can expect to be £700m worse off each year because of administrative costs at the border under the Government’s latest Brexit proposals, HMRC bosses have warned. Extra costs will apply to those bringing in goods from outside the EU as they have to choose between paying EU tariffs - for goods going on to the other 27 nations - or UK taxes for products going to British customers. But they will dodge the estimated £17bn to £20bn….…Read More

 

UK interest rate rise in doubt as inflation stays at2.4%

The Guardian (July 18, 2018)

The chances of a rise in interest rates in August have dipped after British inflation remained at a one-year low last month, triggered by the summer sales. Confounding expectations for the return of higher rates of inflation in June fuelled by the rising price of petrol, the Office for National Statistics said the consumer price index remained unchanged at 2.4% from the Although the cost of gas and electricity increased and the price at the pump hit the highest…Read More

 

FBR gets details of Pakistani assets in Britain

The Express Tribune (July 17, 2018)

ISLAMABAD: In a desperate effort to reinvigorate the lackluster offshore tax amnesty scheme, the Federal Board of Revenue (FBR) claimed on Monday it will proceed against individuals who own immovable properties in the United Kingdom but did not disclose them yet. “The FBR obtains information in respect of immovable properties owned by Pakistanis in the United Kingdom with the assistance of OECD (Organization for Economic …Read More

 

China’s economy slows as trade war with US intensifies

The Hindustan Times (July 16, 2018)

China’s economic expansion slowed in line with expectations, signaling broadly stable output as the trade conflict with the US intensifies. Gross domestic product increased 6.7 percent in the second quarter from a year earlier. That was the slowest pace since 2016 and down slightly from the 6.8 percent pace in the previous quarter. Investment growth and industrial output also slowed in June. Industrial output rose 6 percent last month from .....…Read More

 

Rupee falls 57pc against dollar in inter bank trade

The DAWN (July 16, 2018)

The Pakistani rupee lost 5.7 per cent of its value against the US dollar in inter bank trading on Monday, with the greenback being traded at Rs128.50 in the market towards day's close. Meanwhile, the selling rate in the open market climbed up to Rs130 while the greenback remained short in supply. On Saturday, State Bank of Pakistan (SBP) Governor Tariq Bajwa had denied any move for devaluation. On the same day, caretaker Finance Minister ……......…Read More

 

EU lower Eurozone 2018 GDP forecast

The Times of Malta (July 15, 2018)

The European Commission trimmed its growth forecast for the euro area this year to 2.1 per cent, downwards from the previous 2.3 per cent projection. Growth of two per cent is now expected for next year. Economic momentum moderated in the first half of 2018 after five straight quarters of vigorous expansion. This slight downward revision compared to spring reflects the impact on confidence of trade tensions and policy uncertainty, ....…Read More

 

Global markets feeling the heat as Trump tax cuts set US economy on fire

The Telegraph (July 14, 2018)

The current heatwave isn’t the only thing that’s causing some discomfort in financial markets. It is clear that the US economy is not only also suffering from a heatwave, but is metaphorically on fire also. Soaring small business confidence, corporate tax cuts fuelling surging company profits, and a labour market that is not only continuing to create jobs but is drawing people back into the workforce as the participation rate rises. And while more company.....…Read More

 

ICCI shows concern over all time high trade deficit of over $37 billion

The Daily Times (July 14, 2018)

The Islamabad Chamber of Commerce and Industry has shown great concerns over the all-time high trade deficit that has touched US$ 37.7 billion during the fiscal year 2017-18 as it would put more pressure on the forex reserves and create many problems for the struggling economy. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that as per recent figures of Pakistan Bureau of Statistics, Pakistan’s.....…Read More

 

India’s exports up 17.57% in June, trade deficit widens to 43-month high

The Hindustan Times (July 13, 2018)

Exports grew by 17.5% to $27.7 billion in June on account of healthy growth in sectors such as petroleum and chemicals but trade deficit widened to a 43-month high of $16.6 billion due to costlier crude oil imports. Imports rose by 21.31% to $44.3 billion during the month, according to the data released by the commerce ministry. The trade deficit in June 2018 is the highest since November 2014 when the gap was $16.86 billion. The deficit in June 2017 .....…Read More

 

China trade surplus with US hits record $29bn high

The Guardian (July 13, 2018)

China’s trade surplus with the US widened to a record in June, risking further escalation of a bitter trade dispute with Washington. The difference between China’s exports to the US and its imports from the world’s largest economy expanded to a monthly high of $29bn (£22bn), up from $24.6bn in May. China’s exports to the US jumped by 13.6% in the first half of 2018 from a year earlier, while its imports from the US rose 11.8% in the same period. .....…Read More

Budget Study Centre Issue 19
July 17, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

55,000 people avail amnesty scheme thus far

The DAWN (July 12, 2018)

ISLAMABAD: Nearly 55,225 people have filed returns declaring their Rs577 billion worth of foreign assets and Rs1,192bn domestic assets under the tax amnesty scheme, new data released by the finance division on Wednesday shows. The declarants have paid around Rs97bn in taxes thus far with more in the pipeline. The break down showed that the government received a tax amount of Rs36bn on whitening of foreign assets and Rs61bn………Read More

SBP sees gloomy growth for Pakistan in FY19

The Express Tribune (July 12, 2018)

KARACHI: Pakistan is unlikely to achieve the growth target of 6.2% in the current fiscal year amid an increase in the number of challenges facing the economy, wrote the State Bank of Pakistan (SBP) in its quarterly report on the state of the economy. After achieving a 13-year high growth of 5.8% last fiscal year, the government set a growth target of 6.2% for 2019. However, depleting foreign exchange reserves and a weaker rupee stifle growth………Read More

Public debt rises 11 percent, touches Rs23.769 trillion during July-May FY18

Pakistan Today (July 10, 2018)

LAHORE: The State Bank of Pakistan (SBP) on Monday released data pertaining to central government debt which rose to Rs23.769 trillion during first 11 months (July-May) of FY18, registering an 11 percent increase during this period. At the end of FY17 (June 2017), the debt was recorded at Rs20.767 trillion, posting an increase of Rs3.002 trillion till May 2018 largely driven by rising domestic and foreign borrowing amidst increasing twin deficits………Read More

IMF bailout on the cards for Pakistan’s next government: analysts

The DAWN (July 09, 2018)

RAWALPINDI: The country's next government, to be chosen in the July 25 general elections, faces growing fears of a balance of payments crisis with speculation it will have to seek its second IMF bailout in five years, analysts say. The central bank is running down its foreign reserves and devaluing the currency in a bid to bridge a yawning trade deficit, and the winners of the election will have “limited time” to act, Fitch ratings agency said on July 2.…Read More

China and Germany swear to keep trade free

The Times of Malta (July 09, 2018)

Germany and China signed a raft of commercial accords worth some €20 billion on Monday, with their leaders reiterating commitments to a multilateral global trade order despite a looming trade war with the United States. The deals, involving German industrial giants such as Siemens, Volkswagen and BASF, come with the two leading exporting powerhouses being forced into an unlikely alliance in defence of the open global trade on …Read More

Egypt expects 9.8% deficit in FY 17/18 budget-MOF

The MUBASHER (July 05, 2018)

Cairo – Mubasher: The Egyptian finance ministry forecasts fiscal year 2017/2018 budget deficit to reach 9.8% of the gross domestic product (GDP). Revenues in the last fiscal year budget are expected to hit EGP 989 billion ($55.47 billion), of which Egypt will repay EGP 817 billion in interests and debt installments, finance minister Mohamed Maait said. The minister has noted that the North African country will announce the,...…Read More

Inflation touches 44-month peak at 5.2%

The Express Tribune (July 05, 2018)

ISLAMABAD: The inflation rate rose 5.2% in June, which was its highest level in the past 44 months, as an increase in prices of petroleum products and sharp depreciation of the rupee started impacting every household adversely. Measured by the Consumer Price Index (CPI), the average increase in prices of 40 dozen items was calculated at 5.2%, reported the Pakistan Bureau of Statistics (PBS) on Wednesday. It was the highest level since .…Read More

GST: India’s big reform paying off, but budget hole fears stay

The Economic Times (July 03, 2018)

One year after India introduced a consumption tax, the results have been mixed. Hailed as one of the biggest reforms by Prime Minister Narendra Modi, the goods-and-services levy has helped increase tax collections in a country where compliance is historically low. While monthly receipts have picked up after a chaotic rollout, they are still not strong enough to meet the government’s annual tax target. GST brought in an average….…Read More

The role of Civil Society Organization is very vital to improve the governance issues. CNBA

News Room (June 29, 2018)

Quetta: The role of Civil Society Organizations is very vital they can watch the Budget Making Process to improve the governance issues at Provincial level said Raja Shoaib Akbar, Senior Program Manager Center for Peace and Development Initiatives (CPDI) Islamabad. In 2 Days workshop organized by CPDI, Citizen Network for Budget Accountability (CNBA) raised the demand to ensure the participation of local population in budget making process .…Read More

Civil society organizations raise demand to ensure participation of local population in budget making process at district level.

The Balochistan Point (June 29, 2018)

QUETTA: The civil society organizations can watch the budget making process to improve governance issues at provincial level, said Raja Shoaib Akber, senior program manager Centre for Peace and Development Initiatives (CPDI) Islamabad. While addressing the participants of two-day workshop in Quetta, senior program manager CPDI emphasized the vital role of   civil society organizations for improving governance challenges and budget ….…Read More

Caretakers increase government employees’ salaries, pension in Punjab

The Express Tribune (June 26, 2018)

LAHORE: The provincial cabinet on Tuesday approved a four-month budget for Fiscal Year 2018-19. The meeting approved the proposal of a 10% increase in the salaries of government employees, besides approving to review the house rent. It also gave approval of a 10% increase in the pension of retired government employees. The caretaker government gave approval to the development budget for four months for the new Fiscal Year 2018-19. The meeting also .…Read More

Pakistan’s foreign borrowing surges to $10b in 11 months

The Express Tribune (June 26, 2018)

ISLAMABAD: Pakistan has received nearly $10 billion in foreign loans in the past 11 months, and almost three-fourths have been utilised for budgetary support and meeting external financing requirements, underscoring that the amount cannot be returned without resorting to fresh borrowing. The total loan disbursement from July through May of fiscal year 2017-18 stood at $9.98 billion, reported the Economic Affairs Division on Monday. The 11-month....…Read More

Civil society organizations can watch budget making process: Manager CPDI

Onlineindus News (June 23, 2018)

KARACHI: June 23, 2018: Civil Society Organizations can watch the Budget Making Process to improve the governance issues at Provincial Level Said Raja Shoaib Akber, Senior Program Manager Centre for Peace and Development Initiatives (CPDI) Islamabad. Citizens’ Network for Budget Accountability (CNBA) raised the demand to ensure the participation of local population in budget making process at district level. CPDI’s …………Read More

 
Budget Study Centre   Issue 18 June 26, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Current account deficit rises to $16bn

The Dawn (June 21, 2018)
KARACHI: The current account deficit rose to $16 billion in the first 11 months of this fiscal year, an increase of 43 per cent from the same period last year, according to data released by the State Bank on Wednesday. According to SBP the deficit rose to $15.961bn during the July-May period of 2017-18 against $11.14bn in the corresponding period last year. As a percentage of GDP, the current account deficit rose to 5.5pc from 4pc of GDP in the same ... Read More

Circular debt swells Rs40 billion in just three weeks

The Express Tribune (June 21, 2018)
ISLAMABAD: The circular debt has grown Rs40 billion in first three weeks of the current caretaker government, reaching close to Rs550 billion. “The circular debt stood at Rs507 billion on May 31, the last day of the previous government, but it increased Rs40 billion to Rs547 billion in June,” revealed Hub Power Company Chief Executive Officer Khalid Mansoor while briefing the Senate special committee on circular debt ... Read More

Uncertainty results in currency plunging to Rs 125 in open-market

The Express Tribune (June 21, 2018)
KARACHI: Speculation and uncertainty over Pakistani rupee’s value against the US dollar has pushed currency dealers to sell it a record rate of Rs125 on Wednesday, widening the spread with the inter-bank market. As Pakistan desperately moves to arrest the slide of its foreign exchange reserves, the rupee has lost value in both inter- bank and open markets, with the spread between the two going as high as Rs3.52 as currency dealers remained worried over its ... Read More

EU set to push for WTO reforms to ease global trade tensions

Business Recorder (June 19, 2018)
Japan left unchanged its assessment that the economy is gradually recovering, showing policymakers remain confident of a moderate upturn after a contraction in the first quarter. “Japan’s economy is gradually recovering,” the Cabinet Office said in its monthly economic report for June on Tuesday. That was unchanged from the previous month. There was also no change to its assessment that consumer spending is “recovering” and its view that ... Read More

Japan sticks with assessment economy is ‘gradually recovering’

The Daily Times (June 20, 2018)
BRUSSELS: European Union countries will commit to drive reform of the World Trade Organization to ensure trade is both free and fair, assuming their leaders adopt draft conclusions prepared ahead of next week’s EU summit. EU leaders will meet in Brussels on June 28-29 to discuss a range of issues, including migration and security as well as trade, which has taken on added importance after US President Donald Trump imposed import tariffs on EU steel ... Read More

Finance minister seeks support for success of amnesty scheme

The Express Tribune (June 19, 2018)
KARACHI: The caretaker government, with its limited mandate to fix the faltering economy, has urged bankers and stockbrokers to play their role in making the tax amnesty scheme successful and the first dollar-based savings certificates for overseas Pakistanis to shore up the critically low foreign currency reserves. To make the scheme successful, the government is ready to make amendments to relevant laws in order to remove the emerging..... ... Read More

Trump sets $50bln in China tariffs; Beijing wows to strike back

The News (June 16, 2018)
WASHINGTON: US President Donald Trump said he was pushing ahead with hefty tariffs on $50 billion of Chinese imports on Friday, and the smoldering trade war between the world's two largest economies showed signs of igniting as Beijing immediately vowed to respond in kind. Trump laid out a list of more than 800 strategically important imports from China that would be subject to a 25 percent tariff starting on July 6, including... Read More

Budget deficit widens to Rs2.1tr, far exceeding FY18 target

The Express Tribune (June 14, 2018)
ISLAMABAD: The budget deficit is estimated to have widened to roughly Rs2.1 trillion in 11 months of the current fiscal year, of which nearly 30% was recorded in last two months of the Pakistan Muslim League-Nawaz (PML-N) government, indicating negligence of the finance ministry. Initial estimates of fiscal operations suggested that the budget deficit from July through May of fiscal year 2017-18 could have shot up to Rs2.1 trillion or 6.1% of ... ... Read More

Pakistan braces for higher inflation as rupee weakens

The Express Tribune (June 13, 2018)
KARACHI: Contrary to the previous two rounds of rupee devaluation, this time the KSE-100 Index underwent a rather subdued ride when the currency weakened against the US dollar. Analysts say the third round of rupee weakening, which came against expectations and assurances given by the PML-N government, has left investors bewildered at the extent of the plunge, sending them ducking for cover as macroeconomic……..... ... Read More

No mandate to seek IMF package, says finance minister

The DAWN (June 13, 2018)
ISLAMABAD: Highlighting serious issues relating to current account and fiscal deficit, caretaker Finance Minister Dr Shamshad Akhtar on Tuesday said the interim government had no mandate to sign any new agreement or start negotiations with the International Monetary Fund (IMF) for a bailout package, stressing that any decision to that effect should be taken by the upcoming elected government. She also said that market forces should decide the ….. ... Read More

Pakistan’s trade deficit widens to $34 billion

Daily Times (June 12, 2018)
KARACHI: Pakistan’s trade deficit in eleven months of outgoing fiscal widened to $33.88 billion from the $29.88 billion reported in corresponding period of last fiscal, official data showed on Monday. The overall trade deficit widened by 13.40 percent in July-May period of Fiscal Year 2017-18 (FY18) as compared to the same period of FY17, reported the Pakistan Bureau of Statistics (PBS). The overall exports in eleven months of FY18 increased by 15.28 percent ... Read More

Overseas Pakistanis remit $18 billion in 11MFY18, up by2.95%

Daily Times (June 12, 2018)
KARACHI: Overseas Pakistani workers remitted $18028.24 million in the first eleven months (July to May) of FY18, showing a growth of 2.95 % compared with US $17511.12 million received during the same period in the preceding year. According to State Bank of Pakistan, during May2018, the inflow of worker’s remittances amounted to US $1771.24 million, which is 7.30% higher than April 2018 and 5.13%lower than May2017. The country wise details for the ... Read More

Pakistan uses Chinese trade finance to repay foreign debt

The Express Tribune (June 10, 2018)
ISLAMABAD: Pakistan has largely exhausted a Chinese trade financing facility to repay its foreign debt as the finance ministry struggles to find another source to finance the current account deficit in June in a bid to keep foreign currency reserves at current levels and prevent them from falling further. The State Bank of Pakistan (SBP) has largely tapped $1.5 billion in additional trade financing facility available under the China-Pakistan currency swap ... Read More
 
Budget Study Centre   Issue 17 June 8, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Public enterprises eat up 3.5pc of GDP in debts

The DAWN (June 7, 2018)
KARACHI: The public sector enterprises’ (PSEs) debt has almost soared to Rs1 trillion at the end of third quarter of FY18, State Bank of Pakistan (SBP) reported in its latest issue of Statistical Bulletin for June. The outgoing government could not resolve the growing problem of PSEs’ debts and it failed to address the issue of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) loaded with huge loans....…Read More
 

World Bank sees Pakistan growth slowing down next

The DAWN (June 7, 2018)
ISLAMABAD: The World Bank has forecast Pakistan’s economic growth in next fiscal year to slow down owing to higher than expected oil prices. Growth in the Pakistani economy is expected to slow to 5pc in 2018-19 from expected growth of 5.8pc in the outgoing fiscal year, reflecting tighter policies to improve macroeconomic stability, says the World Bank’s Global Economic Prospects Report for 2018.……....…Read More
 

GDP woes over, Indian economy to grow at 7.3% in 2018-19, says World Bank

The Business Today (June 6, 2018)
Indian economy is likely to regain its pace in the current fiscal and once again become the fastest growing emerging economy, a World Bank report said. The Global Economic Prospects report released by the World Bank on Tuesday projects that India will see its gross domestic product (GDP) grow at a rate of 7.3 per cent during the ongoing fiscal and at 7.5 per cent in the two succeeding ones. "Growth in India is projected to accelerate to 7.3 percent in.…Read More
 

External financing to reach over $11.6bn in 2018-19

Pakistan Today (June 6, 2018)
KARACHI: The total inflows of external financing are expected to the tune of over $11.653 billion during the upcoming fiscal year (2018-19). “Total inflows of external financing are expected to be $11,653.9 million during 2018-19 with project loans worth $4,835.2 million and programme loans worth $1,818.6 million,” said sources in the Economic Affairs Division. According to figures, the country would receive financing of $3130.8 million from …....…Read More
 

British taxpayer set to lose in $3.5bn RBS sale

The DAWN (June 5, 2018)
LONDON: Britain is selling some of its stake in Royal Bank of Scotland for about 2.6 billion pounds ($3.5bn), although it will realise a significant loss as it unwinds its holding and returns the bailed-out lender to private hands. The government said on Monday it would sell about 7.7 per cent of RBS, which was rescued in a 45.5bn pound bailout at the height of the 2008 financial crisis, reducing its overall stake to 62pc. Britain will make a loss on that ……....…Read More
 

Rupee weakens to record low as dollar flow slows down

The Express Tribune (June 2, 2018)
KARACHI: With a persistent decline in Pakistan’s foreign currency reserves that were not enough to bear the cost of two months of imports, the rupee weakened to a record low of Rs119.35 to the US dollar in the open market on Friday. During the day, the currency also hit a new all-time intra-day low of Rs119.80 to the US dollar, according to Dollareast Exchange Company’s website. On Thursday, the rupee had closed at Rs119.10 to the greenback, .…Read More
 

‘With political instability, economic activities sinking’

The Express Tribune (June 2, 2018)
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged political parties to show maturity and safeguard the interests of the country. In a statement issued on Friday, LCCI President Malik Tahir Javaid said due to political instability trade and economic activities were sinking and appealed to protesters to stay away from such politics because the country was facing huge economic losses only because of irrational.…Read More
 

Indian economic growth hits highest rate in almost two years

The DAWN (June 1, 2018)
NEW DELHI: The Indian economy grew 7.7 per cent year-on-year in January-March, its quickest pace in nearly two years driven by higher growth in manufacturing, the farm sector and construction. The figure surpassed China’s growth rate of 6.8pc in the January-March quarter, confirming India as the fastest growing major economy. For the fiscal year that ended March 31, the Ministry of Statistics reported growth of 6.7pc, down.…Read More
 

Rs31.3bn released hours before government’s term ends.

The DAWN (June 1, 2018)
ISLAMABAD: The PML-N government on Thursday paid Rs31.3bn sales tax refunds to traders and exporters a few hours ahead of completion of its five-year term of government while leaving behind massive shortfalls in revenue collection. The Ministry of Finance has asked Federal Board of Revenue (FBR) to prepare a list of claimants who will be issued a refund. The list was completed in a very short time and the full amount will reach taxpayers’.…Read More
 

With the end of PML-N’s term, SBP’s reserves stand at just $10.03b

The Express Tribune (May 31, 2018)
KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) remained under pressure, falling 2.78% on a weekly basis, according to data released by the central bank on Thursday. With the PML-N’s tenure ending today (Thursday, May 31), the country’s foreign exchange reserves stand depleted, sparking concern over Pakistan’s ability to meet future payment obligations and manage a bulging current account deficit.…Read More
 

Circular debt at Rs573 billion influential people major defaulters

The Express Tribune (May 30, 2018)
ISLAMABAD: The Ministry of Energy (Power Division) acknowledged on Tuesday that the circular debt had reached Rs573 billion – a massive amount that undermines efforts made to improve power production and transmission. Briefing the Senate special committee on circular debt, chaired by Shibli Faraz, the joint secretary of Power Division said out of the circular debt of Rs573 billion, running defaulters, who were very influential, had to…Read More
 

Pakistan, WB sign two financing pacts of $400m

The Nation (May 30, 2018)
ISLAMABAD - Pakistan on Tuesday has signed two financing agreements worth $400 million with the World Bank including Punjab Cities Programme ($200 million) and Punjab Green Development Programme ($200 million). Economic Affairs Division Secretary Syed Ghazanfar Abbas Jilani signed the financing agreements on behalf of the Government of Pakistan while representatives of Government of Punjab signed their respective .…Read More
 

Govt borrowed $9.6 billion in 10 months

The Nation (May 29, 2018)
ISLAMABAD - Pakistan has borrowed $9.6 billion from external sources only in ten months of the current fiscal year increasing the overall debt of the country that has already surged to $91.8 billion. Pakistan has received $1.6 billion in new foreign loans during the month of April only, as major part of the borrowing $1.2 billion was through the commercial banks. The government has already breached the limit of annual foreign borrowing of $8 billion, as the …Read More
 
Budget Study Centre   Issue 16 May 24, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Govt hires UAE banks to raise $200m loan

The DAWN (May 24, 2018)
DUBAI: The Government of Pakistan is raising a $200 million syndicated loan with three United Arab Emirates (UAE) banks, banking sources familiar with the matter said, as Islamabad clings to external funding to stave off the pressure on balance of payments. The loan, with a one-year maturity, is being arranged by Commercial Bank of Dubai, Emirates NBD, and Noor Bank, said the sources. Pakistan needs to raise funds to offset a drop in international ….Read More
 

Pak, UK merchandise trade increased to over £1.93bn

Business Recorder (May 23, 2018)
LONDON: The merchandise trade volume between Pakistan and the United Kingdom (UK) during the calendar year 2017 has increased to over £ 1.93 billion showing an increase of 8 percent when compared to last year (2016), Commercial Counsellor Pakistan High Commission London, Sajid Mehmood Raja, said Tuesday. “During the year 2017 Pakistan’s total exports to the United Kingdom reached over £ 1.24 billion which also showed an….Read More
 

Sindh Assembly approves budget for fiscal year 2018-19

The Express Tribune (May 23, 2018)
KARACHI: Despite protests from the opposition benches, the government passed on Tuesday the Rs1.44 trillion budget for the financial year 2018-19 in the Sindh Assembly by approving Rs110 billion supplementary grants for the outgoing year 2017-18. After the eight-day debate on the budget, Chief Minister Murad Ali Shah, who also holds the portfolio of the finance ministry, moved a motion to pass the annual and supplementary budget. Opposition ….Read More
 

German economy still booming but has lost some momentum-Bundesbank

Times of Malta (May 22, 2018)
Growth in the German economy, Europe's biggest, remains robust but the underlying momentum has likely weakened and the risk of a global trade war remains, the Bundesbank said on Tuesday in a regular monthly economic report. Much of the first-quarter dip in growth was due to exceptional factors so a rebound is still likely, even if the overall growth momentum has also softened somewhat, the Bundesbank said. "We expected that the boom in ….Read More
 

Exports likely to cross $5billion

The Express Tribune (May 22, 2018)
ISLAMABAD: Pakistan is expected to become an outsourcing destination by 2020, and is likely to increase IT and ITES exports to the $5-billion mark, after launching strategic initiatives along with tax holiday and capital repatriation incentives for the private sector. There are tremendous opportunities for Pakistan as its IT and ITES-Business Process Outsourcing (BPO) exports are estimated to have crossed $3 billion already this year. A ministry official….Read More
 

Pakistan’s budget deficit soars to record Rs.1.48 trillion

The Express Tribune (May 22, 2018)
ISLAMABAD: The government that once took pride in ensuring fiscal discipline is now on a path of compromising Pakistan’s macroeconomic stability as it has booked a record high budget deficit of Rs1.481 trillion for nine months of the current fiscal year, which is even higher than the annual target. The overall budget deficit – the gap between income and expenditure – widened to 4.3% of gross domestic product (GDP) or …….Read More
 

Provincial Budget 2018-19: Gree and gloom in Balochistan agri budget

The DAWN by Mohiuddin Aazim (May 21, 2018)
THE fact that the there was no mention of the proposed Balochistan Bank in the provincial budget for the next fiscal year might have disappointed agriculturists, particularly small farmers. In his budget speech for the current fiscal year delivered on June 15, 2017, Aslam Bizenjo, the then adviser to the Balochistan chief minister, announced an allocation of Rs10 billion for the proposed provincial bank. But when the current adviser, Dr Ruqayya Saeed Hashmi, presented the next fiscal …….Read More
 

AJK govt presents over Rs 108bn budget for next fiscal year

Business Recorder (May 21, 2018)
ISLAMABAD: Azad Jammu and Kashmir government presented over Rs 108 billion budget for the fiscal year 2018-19. According to Radio Pakistan Minister for Finance Dr. Najeeb Naqi presented the budget in the House on Monday. Presenting the budget he said over Rs 25 billion have been allocated for the development sector showing an increase of ten percent as compared to recurrent budget. Over Rs 82 billion have been proposed for the non-development expenditure... Read More
 

US and China put trade war ‘on hold’

The Guardian (May 20, 2018)
America has pulled back from launching a trade war with China that could have destabilised the global economy, by agreeing to put proposed tariffs on Chinese imports “on hold”. The Treasury secretary, Steven Mnuchin, said on Sunday that negotiations with Chinese officials have borne fruit, meaning Washington and Beijing can step back from imposing punishing tariffs on each other’s exports. Xi strikes conciliatory tone on trade but offers few concessions …….Read More
 

World Bank to invest $460m in road from Peshawar to Afghan border

The Express Tribune (May 20, 2018)
ISLAMABAD: After marked improvement in the security situation, the World Bank has decided to invest $460 million to build a new road from Peshawar to Afghanistan border aimed at bolstering trade between the two nations and creating job opportunities in war-torn federally administered tribal areas (FATA). The board of directors of the World Bank is likely to approve the $460-million loan next month for Peshawar-Torkham Expressway …….Read More
 

Pakistan’s current account fedicit widens to record high

The Express Tribune (May 19, 2018)
KARACHI: Pakistan’s current account deficit has widened 50% to a record high of $14.03 billion in the first 10 months of the current fiscal year 2018, reported the central bank on Friday. The deficit stood at $9.35 billion in the same period of the previous fiscal year, according to the State Bank of Pakistan (SBP). The deficit increases woes of the country’s economic managers as a widening current account takes toll on foreign exchange reserves that ……Read More
 

Argentina forced to seek IMP aid over fears for economy

The Guardian (May 18, 2018)
Argentina’s struggle this week to prevent a collapse in its currency and soaring interest rates from destabilising its ailing economy appeared to have ended in failure on Friday, leaving it to seek financial aid from the International Monetary Fund. The IMF, the lender of last resort to nation states, said the South American country had formally requested an “exceptional access standby arrangement” that would allow Argentina to pay its foreign bills ……Read More
 

Pakistan’s external debt soars to record $91.8b

The Express Tribune (May 17, 2018)
ISLAMABAD: Pakistan’s external debt and liabilities have soared to a record $91.8 billion, showing an increase of over 50% or nearly $31 billion in the past four years and nine months, the State Bank of Pakistan (SBP) has reported. The external debt and liabilities of $91.8 billion as of March-end suggest that the figure may touch $100 billion very soon as the country faces grave challenges in meeting growing external financing requirements. Pakistan is scheduled to……Read More
 

Budget 2018-19: Ismail unveils new relief measures in windup speech

The Express Tribune (May 16, 2018)
ISLAMABAD: Finance Minister Dr Miftah Ismail on Tuesday announced new relief measures for middle and upper-income groups in his budget windup speech, but turned down proposals that were aimed at giving concessions to non-filers of income tax returns. While ending the debate in the lower house of parliament, the finance minister announced additional measures which would appease sitting ……. Read More
 

German Economy Loses Luster as Global Tensions Bite

The Wall Street Journal (May 15, 2018)
FRANKFURT— Europe’s largest economy cooled sharply in the first quarter amid a drop in government spending and weak exports—a sign that a stronger euro and global tensions are beginning to leave a mark on the German economy. Germany’s annualized growth rate slowed to 1.2% from 2.5% in the fourth quarter of last year, the Federal Statistical Office said Tuesday. This means that the German economy was growing more slowly than the U.S., which …Read More
 

To service maturing debt, Pakistan to borrow Rs22 trillion in 2018-19

The Express Tribune (May 15, 2018)
ISLAMABAD: As the country falls deeper into payments obligation, the federal government has sought the National Assembly’s approval to borrow a record Rs22 trillion in the next financial year to service its maturing public debt, an amount 44% or Rs6.7 trillion higher than the figure for the ongoing year. Federal Finance Minister Miftah Ismail asked on Monday for the National Assembly’s stamp for a record high borrowing of Rs22 trillion …Read More
 

The UK economy’s slowdown is clear to all. Except the Bank of England

The Guardian (May 13, 2018)
Mark Carney is not so much an unreliable boyfriend as a schoolboy who keeps getting his homework wrong. The Bank of England governor gave his quarterly review of the economy last week and yet again confounded earlier expectations that he would increase the cost of borrowing. Whereas in the past Carney has confidently predicted that the economy is robust and capable of absorbing increases in interest rates, only to find plausible …Read More
 

Punjab to present over Rs 155b supplementary budget Monday

The Nation (May 12, 2018)
LAHORE - The Punjab governor has summoned the session of the Punjab Assembly on Monday, 14 May 3pm to present the Supplementary Budget for the financial year 2017-18 worth over Rs155 billion. Gazette Notification to this effect has been issued by the Assembly Secretariat. Speaker Rana Muhammad Iqbal Khan will preside this 36th session of the assembly. It is to be noted that Sindh government unveiled the budget for the fiscal year …Read More
 

Overseas Pakistanis remit $16.25b in ten months

The Nation (May 11, 2018)
KARACHI - Overseas Pakistani workers remitted $16257 million in the first ten months (July to April) of FY18, showing a growth of 3.92 percent compared with US $15643.97 million received during the same period in the preceding year. During April 2018, the inflow of workers’ remittances amounted to $1650.59 million, which is 6.89 percent lower than March 2018 and 7.25pc higher than April 2017. The country-wise details for the month of April …Read More
 

Sindh unveils Rs1.14 trillion deficit budget

The Nation (May 11, 2018)
Karachi - Pakistan People’s Party led Sindh government on Thursday unveiled its sixth and last budget of the expiring tenure with a total outlay of Rs1.14 trillion and Rs20.45 billion deficit. The budget comprised estimates for the whole year but Chief Minister Murad Ali Shah announced that they would authorise only its part pertaining to first quarter of Fiscal 2018-19. The opposition parties however were not satisfied with the government figures and staged protest….…Read More
 
Budget Study Centre   Issue 15 May 15, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

CM Murad to present Sindh budget today

The News (May 10, 2018)
KARACHl: Sindh Chief Minister Murad Ali Shah will present a record over Rs 1 trillion budget for the financial year 2018-19 today (Thursday). Earlier, Sindh government had announced to present the budget on May 5, however government had to backtrack from its decision, now the government is all set to unveil budget for the financial year 2018-19 today. Chief Minister Murad Ali Shah, who also holds the portfolio of the finance, will present the budget ………..Read More
 

Senate body finalizes budget proposals

The Express Tribune (May 10, 2018)
ISLAMABAD: The Senate, where the opposition enjoys a majority, on Wednesday implicitly accepted the government’s right to present the next fiscal year’s budget, as it withdrew a recommendation that sought to limit the PML-N government’s right to present the new budget to only four months. The Senate unanimously adopted a report of the Senate Standing Committee on Finance on Finance Bill 2018 and the Annual Budget…..Read More
 

LHC moved to declare PML-N’s sixth budget illegal

The Patriot (May 05, 2018)
Lahore: a petition seeking to declare unlawful the presentation of the full-year budget 2018-19 by the Pakistan Muslim League Mawaz (PML-N) government is closing weeks of its five years term was filed in the Lahore High Court (LHC) on Saturday. The petitioner has pleaded with the high court to strike down the budget for what he said being unlawful and unconstitutional. He argued that PML-N government was not entitled to unveil a …..…Read More
 

California’s economy passes UK’s to become world’s fifth biggest

The Guardian (May 04, 2018)
California’s economy has surpassed that of the United Kingdom to become the world’s fifth largest, according to new federal data made public on Friday. Despite having a population of only 40 million compared with the UK’s 65 million people, California’s gross domestic product of $2.7tn has overtaken the UK’s $2.6tn. The so-called Golden State’s GDP rose by $127bn in the period from 2016 to 2017, while the UK’s economic output fell ………Read More
 

Pakistan’s macroeconomic outlook, weak balance of trade, and current account deficit

Pakistan Today (May 01, 2018)
LAHORE: As a country divided over its economic policies, embroiled in political infighting and flaky governance along with a longstanding trend of borrowing from internal and external sources to sustain the economy, Pakistan continues to surprise with figures indicating growth and potential to grow even further. The recent announcement of the budget for the fiscal year 2018-19 has been praised by the business community,….…Read More
 

K-P Health dept wants Rs 4b more

The Express Tribune (April 30, 2018)
PESHAWAR: Following directions from the apex court, the provincial health department has sought additional funds from the government to provide critical equipment to health facilities around the province. Chief Justice Saqib Nisar, while presiding over a division bench at Supreme Court registry, had ordered the provincial health department to submit a report on the necessary facilities provided to health centres across .…Read More
 

Experts term budget 2018-19 as non-conventional budget

Pakistan Today (April 30, 2018)
ISLAMABAD: This year the budget 2018-19 is non-conventional as compared to the last four year’s budgets, where the government presented a popular budget with an eye on the upcoming general elections. There is a need to understand the budget in totality and need to have informed criticism and praise of the budget. Whereas, the opposition political parties have to present their shadow budget that should give the formula to reduce the tax rate, reduce …Read More
 

Indonesia officials laud country’s financial stability

The Wall Street Journal (April 30, 2018)
JAKARTA—Indonesia’s financial system is well and under control despite the recently increased pressure on the financial markets, authorities said Monday. “The stability was supported by Indonesia’s strong economic fundamentals, improving performance of financial institutions, and the companies listed on the local stock exchange,” Finance Minister Sri Mulyani said in a press conference after a monthly joint meeting with Bank .………Read More
 

‘K-P ignored in new finance bill’

The Express Tribune (April 30, 2018)
The chief of a major party in Khyber-Pakhtunkhwa on Sunday rejected the federal budget announced on Friday, flaying the federal government for ignoring the province. The comments echo those of traders in the province who have similarly expressed their dissatisfaction with the budget. Education survey: Primary enrollment gets a boost Qaumi Watan Party (QWP) Chairman Aftab Ahmad Khan Sherpao, while addressing ………Read More
 

PML-N government announces populist budget: CPDI

The News (April 29, 2018)
ISLAMABAD: The government has announced one of the most populist budgets in the history of Pakistan giving relief to almost all the sectors of the society. Giving populist budget is not a negative point as government is duty-bound to maximise the welfare of citizens. But without an alternate programme to offset the loss of tax revenue that will occur as a result of tax relief, the future government may be in trouble to get revenue and expenditure targets. The ….Read More
 

India likely to clock 7.5 percent growth in FY19: Deutsche Bank

India Today (April 29, 2018)
The Indian economy is witnessing a "cyclical upswing" and the country is likely clock a GDP growth of 7.5 per cent this financial year, says a Deutsche Bank research report. "Our current growth forecast for 2018-19 is 7.5 per cent (RBI estimate is 7.4 per cent), which will mark an improvement from the 6.7 per cent likely outturn in 2017-18," the global financial services major said. The Reserve Bank expects India's economic growth rate to strengthen to…Read More
 

Water sector budget gets 56pc boost

Express Tribune (April 29, 2018)
ISLAMABAD: For the first time during its five-year tenure, the PML-N government has increased the budget for water sector by 56%. The water sector allocation has been increased from Rs36.75 billion in the outgoing financial year 2017-18 to Rs64.62 billion for FY2018-19. The proposed amount is one-tenth of the proposed size of the Public Sector Development Programme (PSDP) authorised by the finance ministry. During…Read More
 

Budget 2018: PML-N eyes next elections in sixth budget

The News (April 27, 2018)
ISLAMABAD: Amid lingering controversy over the legality of federal budget 2018-19, the ruling PML-N government unveiled its sixth consecutive budget in the National Assembly at the twilight of its constitutional tenure. Miftah Ismail, who was appointed as federal minister hours earlier, presented the budget proposals eyeing the forthcoming elections. Leader of the Opposition in the National Assembly, Syed Khursheed ……Read More
 
Budget Study Centre   Issue 14 April 26, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Rupee depreciates to all-time high of Rs 119.50 against US dollar in kerb market

Pakistan Today (April 26, 2018)
KARACHI: The rupee further depreciated to an all-time high of Rs119.50 against the US dollar in the kerb market on Wednesday. It comes merely days after the central bank had held an emergency meeting with currency exchange companies in which their heads were requested to arrange an adequate supply of dollars in the kerb market, reported an English daily. Separate meetings of two representative bodies of the currency exchange operators were held with….. Read More

Chinese project financing will dip to $906m in FY2018-19

Express Tribune (April 26, 2018)
ISLAMABAD: Project financing from China is expected to dip by more than half to only $906 million during the next fiscal year due to completion of work on some major China-Pakistan Economic Corridor projects and a snail’s pace progress on other schemes. “As against revised estimates of slightly over $2 billion Chinese project loans for CPEC and non-CPEC projects in the outgoing fiscal year, the government has estimated receiving only $906 million in……… Read More

Getting budget passed a daunting task for PML-N

Express Tribune (April 26, 2018)
ISLAMABAD: The government may face a major challenge in getting the upcoming federal budget passed through the National Assembly as the opposition has conveyed it to the rulers that it will support the Finance Bill 2018 only if they say yes to the opposition’s nominee for the post of caretaker prime minister. With the new budget just around the corner and several names under consideration for appointment as caretaker PM, the …..…Read More

Federal Budget 2018-19 to be more responsible: Miftah Ismail

Business Recorder (April 25, 2018)
ISLAMABAD: Adviser to the Prime Minister on Finance Dr Miftah Ismail Tuesday said that the government was set to present a balanced, responsible, and low deficit Federal Budget for the year 2018-19 on Friday (April 27). “We will present a responsible budget that will be acceptable to any upcoming government,” he said while talking to a private news channel. To a question regarding opposition’s demand for presenting the budget for …..…Read More

Govt to announce tax relief of Rs. 80bn in next budget: Rana Afzal

Business Recorder (April 25, 2018)
SLAMABAD: Minister of State for Finance, Rana Muhammad Afzal Tuesday said that the government would announce in the up coming budget 2018-19, a tax relief of around Rs 80 billion for salaried class of the country. From July 1, 2018, the people who have income of less than Rs 100,000 per month, will be exempted from any tax, while tax ratio for those who have monthly income of over Rs 100,000 per month is also being cut significantly, Rana Afzaal said ..…Read More

CPEC provides base for economic growth: Zubair

DAWN (April 25, 2018)
KARACHI: Sindh Governor Muham¬mad Zubair has said that the China-Pakistan Economic Corridor has provided a great opportunity for sustainable economic growth for the next 10 to 20 years which Pakistan badly needed. Addressing the concluding ceremony of the two-day CPEC Summit 2018 organised by the Dawn Media Group and the Ministry of Planning and Development with the participation of the Pakistan-China Joint Chamber of Commerce..…Read More

Annual Plan 2018-19 projects 6.2 percent economic growth rate & 6 percent inflation

Pakistan Today (April 25, 2018)
ISLAMABAD: The Annual Plan 2018-19 approved by the National Economic Council (NEC) headed by the Prime Minister Shahid Khaqan Abbasi projected a 6.2 percent economic growth rate for the upcoming financial year (FY 2018-19). Also, the inflation rate for FY 2018-19 was set at 6 percent and the projected economic growth rate of 6.2 percent is a touch higher than the provisional rate of 5.8 percent for current FY 2017-18, reported Express Tribune. The Asian.…Read More

UK economy grew slower in first quarter of 2018 than last quarter of 2017

The Guardian (April 23, 2018)
The UK economy is set for another year of uninspiring growth in 2018, according to the latest forecasts from the EY Item Club. This week’s first-quarter GDP figures are expected to show growth of just 0.2%-0.3%, according to EY Item Club economists, mainly due to the severe weather the hit the country at the end of February and beginning of March. This compares to quarter-on-quarter growth of 0.4% in the final three months of 2017.…Read More

Budget 2018-19 to be announced on May 8: CM Bizenjo

Express Tribune (April 22, 2018)
QUETTA: Balochistan Chief Minister Abdul Quddus Bizenjo has said that the budget 2018-19 will be announced on May 8, a month ahead of schedule, as the provincial assembly will stand dissolved on May 31 in the wake of general elections in July. “The development funds will be frozen from April 27,” said CM Bizenjo while addressing a session of the Balochistan Cabinet. Balochistan unveils Rs328.5b budget Sources privy to the development……Read More

Demand: “Kalabagh dam should be included in budget 2018-19”

Express Tribune (April 20, 2018)
LAHORE: Kalabagh dam should not be ignored in the federal budget 2018-19 at any cost as water scarcity is heading towards the point of no return, said Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javaid in a statement issued on Wednesday. “Those opposing the Kalabagh Dam are unaware of the ground realities,” added Javaid. “How can a mega water project be harmful for an agrarian country?” The ……Read More
 

Govt aims for large hike in current expenditures in its last budget

DAWN (April 18, 2018)
ISLAMABAD: The Federal Cabinet on Tuesday approved Budget Strategy Paper (BSP) for next fiscal year envisaging Rs1.1 trillion for defence, Rs1.6tr for debt servicing and 5.3pc fiscal deficit in the absence of any foreign aid for budgetary support. Presided over by Prime Minister Shahid Khaqan Abbasi, the meeting also approved revised estimates for current fiscal year because of some key slippages on the expenditure side including 5.5pc fiscal deficit for ………Read More
 

Defence, debt to eat up half of proposed Rs.5.237 trillion budget for 2018-19

Express Tribune (April 18, 2018)
ISLAMABAD: The federal cabinet has approved an expansionary fiscal policy that offers little for development but gives away more than half of the estimated budget of Rs5.237 trillion for new fiscal year to meet the growing needs of defence as well as debt servicing. The cabinet on Tuesday approved Rs1.1 trillion for regular defence budget and another Rs100 billion for Armed Forces Development Programme (AFDP) – a sum of Rs1.2 trillion that ………Read More
 

Pakistan plans to borrow record $13b next fiscal year

Express Tribune (April 15, 2018)
ISLAMABAD: Pakistan has planned to borrow a record-breaking $13 billion in the next fiscal year alone, nearly 63% higher than the outgoing fiscal year’s original estimates, meant largely to repay previously obtained loans and stabilise nose-diving foreign currency reserves. The provisional estimate to borrow $13 billion has been prepared for the budget 2018-19 the PML-N government wants to unveil on April 27, said sources at the Ministry of Finance. If the plan materialises,..Read More
 

Govt set to approve 6.2% GDP growth target for next year

Express Tribune (April 14, 2018)
ISLAMABAD: As the federal cabinet’s approval of the Budget Strategy Paper remains pending, the government is set to approve next fiscal year’s macroeconomic framework, which envisages 6.2% economic growth rate and 6% inflation targets. The Annual Plan Coordination Committee (APCC) will approve fiscal year 2018-19’s macroeconomic framework and federal Public Sector Development Programme on Monday. ……Read More
 
Budget Study Centre   Issue 13 April 16, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PM’s aide going to attend IMF meetings just days before budget

The Express Tribune (April 12, 2018)
ISLAMABAD: Prime Minister Shahid Khaqan Abbasi has decided to send his finance aide to attend spring meetings of the International Monetary Fund (IMF) in a bid to assess the mood in Washington before Pakistan makes a decision on whether to seek another bailout. The decision to send Dr Miftah Ismail, Adviser to Prime Minister on Finance, to Washington hardly 10 days before the announcement of budget signifies the importance of the move. Ismail … Read More
 

Govt unable to meet saving and investment targets

The Express Tribune (April 11, 2018)
ISLAMABAD: Two key structural problems of Pakistan’s economy – low investment and saving rates – remained unaddressed during the five-year PML-N tenure, as the government again missed both these critical targets in the outgoing fiscal year, showed official statistics. By the end of fiscal year 2017-18, private investment has been projected to fall to the lowest level in five years, despite the bonanza of the China-Pakistan Economic …….… Read More
 

China to further open its financial market to the world

China Daily (April 11, 2018)
China central bank governor Yi Gang announced on Wednesday a slew of detailed measures to further open up the financial market, including erasing the capital cap on foreign-owned banks and wealth management firms operating in China, as well as easing equity restrictions on foreign securities and fund companies within this year. China expects most measures to open financial market will be in place by June 30, Yi said at a … Read More
 

Growth to hit 11-year peak

DAWN (April 10, 2018)
ISLAMABAD: The PML-N government on Monday announced that the economy is going to grow at 5.79 per cent, slightly lower than the target of 6pc for 2017-18, but highest in the last 11 years. In the meeting of National Accounts Committee (NAC), only 15 out of 20 key growth indicators were found to be on target. The growth rate, however, is provisional as final numbers for the full year will firm up later. The per capita income calculates to Rs180,204 for … Read More
 

Deficit to top $1 trillion per year by 2020, CBO says

The Washington Post (April 09, 2018)
America’s deficit is rising sharply and will surpass $1 trillion per year by 2020, a gap that has grown since Congress cut taxes and increased spending, the Congressional Budget Office reported Monday. The federal deficit — the gap between how much the government takes in and how much it spends — will hit $804 billion in fiscal 2018, up 21 percent from 2017, the CBO said. “The federal budget deficit grows substantially over the next several years,” CBO Budget …… Read More
 

Hungary posts 345.3bn forint March budget deficit

Business Recorder (April 09, 2018)
BUDAPEST: Hungary’s 2018 budget deficit widened by 345.3 billion forints ($1.36 billion) to 871.9 billion forints in March, the Economy Ministry said on Monday, affirming its 2.4 percent of gross domestic product full-year deficit target. The gap was widened by the financing of European Union-sponsored projects as well as spending on urban development projects, the ministry said. It said one-off pre-election food vouchers provided to pensioners also … Read More
 

Work on budget well under say

Express Tribune (April 07, 2018)
QUETTA: Adviser to Balochistan Chief Minister on Finance Dr Ruqayya Saeed Hashmi has said useful suggestions are being taken from stakeholders, budget experts and finance department officials regarding the budget 2018-19. She said this while addressing a seminar on Governance and Policy Project (GPP) organised by the finance department on Thursday. On the occasion, Additional Chief Secretary Naseebullah………. Read More
 

Trump proposes $100 billion in additional tariffs on Chinese products

CNBC News (April 06, 2018)
President Donald Trump on Thursday said he has instructed the United States Trade Representative to consider $100 billion in additional tariffs against China. "In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs," Trump said in a ……….Read More
 

Shortest discussion on budget since 2000

The Economic Times (April 04, 2018)
NEW DELHI: Budget session 2018 has a dubious distinction — it will have approved a Budget of over Rs 24 lakh crore with members of Parliament spending less than a day of discussion on it. In this Budget session, conducted in two phases, MPs in Lok Sabha spent only 14 and half hours debating the Budget while Rajya Sabha spent even less — 10.9 hours. It’s the least amount of time spent by Parliament deliberating the Budget since 2000, for…... Read More
 

Inflation eases to 3.2pc

DAWN (April 03, 2018)
ISLAMABAD: Inflation, measured through Consumer Price Index (CPI), eased to 3.2 per cent in March from 3.8pc in the previous month, mainly driven by a drop in prices of perishable eatables. The CPI-based inflation has decelerated for the third consecutive month after it reached peak of 4.6pc in December 2017. The CPI tracks the prices of around 480 commodities every month in urban centres across the country, according to data released by …. Read More
 

Planning Ministry want Rs 1.1 trillion as development budget

Express Tribune by Shahbaz Rana (April 03, 2018)
ISLAMABAD: As budget meetings begin in earnest to assess financial needs of various arms of the government, the planning ministry has demanded Rs1.1 trillion for upcoming fiscal year’s development budget, which is 37.5% higher than the ceiling indicated to it. The Ministry of Planning, Development and Reform is not satisfied with the finance ministry’s decision to allocate only Rs800 billion for Public Sector Development Programme …. Read More
 

Upcoming Punjab budget to be agriculture friendly

Pakistan Today (March 31, 2018)
LAHORE: Punjab’s finance minister Dr. Ayesha Ghaus Pasha on Friday told journalists that its forthcoming budget for financial year 2018-19, would raise quotas for agricultural and small and medium enterprises (SMEs) sectors. Ms. Pasha said the provincial government was removing general sales on electric tube wells to decrease input costs for farmers and over 35,000 farmers have been granted concessional loans, reported……Read More
 

Development budget to take hit from cuts.

Express Tribune (March 23, 2018)
ISLAMABAD: The finance ministry has proposed Rs800 billion development budget for the next fiscal year, which is one-fifth less than the Public Sector Development Programme (PSDP) for this year and would affect physical progress on almost 1,100 schemes. The finance ministry on Thursday formally informed the Ministry of Planning, Development and Reform about its intentions to allocate Rs800 billion for fiscal year 2018-19, said sources in the ……Read More
 

Budget preparation: NFC meeting convened to allot provinces’ share

Express Tribune (March 22, 2018)
ISLAMABAD: Prime Minister Shahid Khaqan Abbasi has summoned a meeting of the Council of Common Interest (CCI) by the end of March in order to discuss forthcoming Federal Budget 2018-19 likely to be announced by the end of April. “The CCI and the meeting on National Finance Commission (NFC) Award are to be held on March 27, 2018 to discuss and resolve various issues related to the federating units,” official sources in the finance ministry told ……Read More
 
Budget Study Centre   Issue 12 March 26, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

China will safeguard national interests in response to US trade probes

Daily Times (March 22, 2018)
New Delhi: China will actively take steps to safeguard its interests as well as those of its industries, Vice Commerce Minister Wang Shouwen said, in light of what he described as acts of trade protectionism on the part of the United States. The US decision to launch trade investigations is a unilateral act of protectionism, the Chinese commerce ministry said in a statement on Wednesday, citing a speech by Wang in New Delhi. President Donald Trump is.….. Read More
 

Govt borrowed $7.6b in 8 months

The Nation (March 22, 2018)
ISLAMABAD - The federal government borrowed $7.6 billion in eight months (July to February) of the ongoing financial year, which further increased the overall external debt of the country. The government has borrowed 94 percent of the annual borrowing in just eight months to sustain the foreign exchange reserves. The country’s reserves are depleting due to widening of current account deficit and repayment of previous loans. For the.….. Read More
 

Current account deficit widens 50% in July-February

Express Tribune (March 21, 2018)
KARACHI: Pakistan’s current account deficit shrank 26% on a month-on-month basis to $1.24 billion in February 2018, compared to $1.67 billion in January 2018, according to data released by the State Bank of Pakistan (SBP) on Tuesday. However, in the first eight months (Jul-Feb) of the fiscal year 2017-18 (FY18), the country’s current account deficit widened by 50% to stand at $10.83 billion, compared with $7.22 billion in the same period of previous year.….. Read More
 

Pakistani rupee weakens sharply in likely devaluation

Khaleej Times (March 21, 2018)
Reuters/ Islamabad/ Karachi: Pakistan's rupee weakened sharply against the dollar on Tuesday in what appeared to be a currency devaluation by the central bank, traders said, the second such intervention in less than four months. The apparent devaluation comes at a time when Pakistan's nearly $300 billion economy is showing signs of vulnerability despite surging growth rates. The rupee plunged to about 115.5 per dollar in early trading from 110.5 at Monday's close, which is 31….. Read More
 

Budget 2018-19: PSX proposes rationalization of CGT rates

Express Tribune by Salman Siddiqui (March 20, 2018)
KARACHI: The Pakistan Stock Exchange (PSX) has proposed to the government to rationalise Capital Gains Tax (CGT) on the transaction of shares, as the management seeks measures to boost the KSE-100 Index that has retreated close to 18% since it hit a record high of 52,876.46 in May 2017. Presenting budget proposals to Adviser to Prime Minister on Finance Miftah Ismail, a PSX delegation, under chairperson Muneer Kamal, recommended to rationalise …. Read More
 

Financial Year 2018 review: States not to revert to fiscal deficit below 3 pct.

Financial Express (March 19, 2018)
New Delhi: With the UDAY burden off, state governments in aggregate were expected to revert to well below 3% fiscal deficit in the current financial year, but an analysis by FE of 14 state budgets presented recently suggests they might not. As the year is drawing to a close, seven of these states have revised their FY18 fiscal deficits to be higher than projected a year ago, with the slippage ranging from a marginal 0.1 to profligate 4.63 percentage points. Unless the other states... Read More
 

Govt. plans modest hike in tax target for 2018-19

DAWN (March 18, 2018)
ISLAMABAD: The PML-N government is set to propose nearly Rs4.5 trillion revenue collection target for its sixth and final budget with several measures to facilitate its realisation. Top tax men have been tasked to prepare the first draft of tax relief and revenue measures in the next couple of weeks. The government has already set April 27 for the announcement of the Federal Budget 2018-19 to be followed by provincial ones. An official.…Read More
 

Pakistan’s external debt to climb to $103b by June 2019: IMF report

Express Tribune (March 16, 2018)
ISLAMABAD: The International Monetary Fund (IMF) has assessed Pakistan’s gross external financing needs at a record $27 billion for the next fiscal year, but warned that arranging the financing at favourable rates will now be a challenge due to risks to the country’s debt sustainability. In its post-programme monitoring report, the IMF also forecast that due to additional borrowings, Pakistan’s external debt would jump to $103.4 billion .…Read More
 

PM directs for making last budget ‘extraordinary’

The Nation (March 14, 2018)
ISLAMABAD - Prime Minister Shahid Khaqan Abbasi on Tuesday directed his cabinet members to prepare an ‘extraordinary’ budget for the fiscal year 2018-19 before the government completes its term, sources said. Abbasi chaired the federal cabinet meeting at the Prime Minister’s Office. A federal minister who attended the meeting told The Nation that the premier asked the ministers to work together to present a budget that could give relief …Read More
 

US Budget Deficit Jumped to $215.2Billion in February

The NY Times (March 12, 2018)
WASHINGTON — The federal government recorded a budget deficit of $215.2 billion in February, up significantly from a year ago as the impact of the GOP tax cuts passed in December begin to surface. The Treasury Department said Monday that the February deficit was 12.1 percent higher than a year ago, reflecting in part a drop of $5 billion in individual withholding taxes paid last month compared to a year ago. In February, employers started using tax…Read More
 

Outlook for UK financial services brightens, assets set to reach £1.5 trillion by 2020, EY finds

BBC News (March 12, 2018)
A well-managed Brexit and stronger than expected economic performance will boost the financial services sector in the year ahead, according to an analysis from EY Item Club. The outlook for the UK financial services sector is better than many had hoped, the findings showed, but challenges remain in the the consumer credit, residential mortgage and business lending markets. Equity markets should still perform well in the year ahead, despite, …Read More
 

Florida Legislature OKs $88.7 billion budget end 2018 session

MyPalmBeachPost (March 11, 2018)
TALLAHASSEE —The Florida Legislature wrapped up the end of an extended 2018 session Sunday with the passing of a budget that pushes hundreds of millions of dollars toward spending on K-12 and higher education, improving school safety and battling the opioid crisis. Approved by a 95-12 vote in the House and 31-5 vote in Senate, the $88.7 billion budget also includes $100 million for the Florida Forever program, which allows the state , …Read More
 

Federal Budget 2018-19 to be announced on April 27: Miftah

DAWN (March 09, 2018)
The federal government will present the budget for fiscal year 2018-19for approval from the National Assembly on April 27, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Miftah Ismail said on Friday. Addressing a press conference in Islamabad, Ismail said that the government has taken all political parties into confidence about the budget, which he said would be presented on April 27 before the five-year. ……Read More
 
Budget Study Centre Issue 11
March 8, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

IMP concerned at Pakistan’s weakening economy

DAWN (March 8, 2018)

ISLAMABAD: The International Monetary Fund (IMF) on Wednesday expressed concern over Pakistan’s weakening macroeconomic situation, including widening external and fiscal imbalances, reduction in foreign exchange reserves and emerging risks to economic and financial outlook. The IMF executive board asked the government to immediately refocus on near-term policies to preserve macroeconomic stability and get back to.…….Read More

Government plans to cut duties on solar batteries

Express Tribune (March 8, 2018)

ISLAMABAD: The government is working on a plan to slash duties on the import of lithium batteries in a bid to promote its usage in solar power plants. At present, 25-30% in duties are charged on the import of lithium batteries and a higher 55% duty is collected on the import of solar AGM and GEL batteries. As a result, the cost of solar batteries has now become double than the price of solar panels because of a 50% dip in prices of the latter over the past.…….Read More

Govt. committed to an economically strong Pakistan: Ahsan Iqbal

Pakistan Today (March 7, 2018)

ISLAMABAD: Minister for Planning, Development and Reform Dr Ahsan Iqbal Wednesday said the government was committed to create an economically strong Pakistan and provide a secure future to the youth. He was speaking at the inaugural session for the establishment of Centre for Social Entrepreneurship at Pakistan Planning and Management Institute here. He said Pakistan had been left behind a lot of other countries due to instability and…….Read More

Global growth, domestic demand to lift FY19 GDP to 7.5%: Crisil report

First Post (March 7, 2018)

Mumbai: The economy will grow up to 7.5 percent in FY19, supported by domestic consumption, policy push, and synchronised global growth, says a report. In the current fiscal, GDP growth is expected to be 6.5 percent. The Economic Survey 2018 has pegged FY19 growth at 7-7.5 percent. "After two sub-par years, interjected by demonetisation and rollout of goods and services tax (GST), growth is seen recuperating to a respectable 7.5 percent next fiscal," …….Read More

Pakistan’s exports fell by 20 percent in last six years: WB

Daily Times (March 7, 2018)

ISLAMABAD: A poor business environment, an overvalued exchange rate, relatively weak trade facilitation and infrastructure and lack of value chains inclusion in trade policy lead Pakistan’s exports decline by 20 percent over the period, FY11-17. These startling facts were revealed by World Bank’s Lead Country Economist, Enrique Blanco Armas, while speaking at roundtable meeting titled “Public-Private Policy Symposium of achieving export …….Read More

China keeps growth target at 6.5 percent

Daily Times (March 6, 2018)

BEIJING: China aims to expand its economy by around 6.5 percent this year, the same as in 2017, while pressing ahead with its campaign to reduce risks in the financial system, Premier Li Keqiang said Monday. The goal was kept unchanged even though the economy grew 6.9 percent last year and exceeded the government’s target. Sources previously told Reuters that China will maintain its growth target at “around 6.5 percent”. Economists …..…Read More

Bangladesh and Vietnam aim to raise trade to $2bn by 2020

Business Recorder (March 6, 2018)

DHAKA: Bangladesh and Vietnam aim to raise their two-way annual trade to $2 billion over the next three years from nearly $1 billion, a business association official said on Monday. “We had a meeting with the visiting president of Vietnam today and focused on trade and investment,” Mohammad Shafiul Islam, president of Federation of Bangladesh Chambers of Commerce and Industries, told Reuters. Vietnamese President Tran Dai Quang …..…Read More

‘America First’ policy to have direct implications for Pakistan economy

The Express Tribune (March 5, 2018)

ISLAMABAD: The Trump administration is trumpeting a new role to play in the world with the “America First” slogan. The White House is releasing executive orders which are bound to reverse the globalisation process and domestic social-sector reforms undertaken by former president Barack Obama. The very first victim of Trump policies is the immigrants. The health care bill has extensively been debated and the Trump administration…Read More

Freezing weather costs UK economy £1bn a day

The Guardian (March 3, 2018)

Gridlocked motorways, empty restaurants and idle diggers seen across Britain last week cost the economy at least £1bn a day and could halve GDP growth in the first three months of the year. Analysts said the impact of the “beast from the east” sweeping in from Siberia and the arrival of Storm Emma hitting the south coast was likely to be the most costly weather event since 2010, when freezing temperatures and snow brought the economy to a standstill a …….Read More

Govt will have to pay IMF $3bn by June, claims Rana

DAWN (February 28, 2018)

KARACHI: Pakistan will have to pay $3 billion to the International Monetary Fund (IMF) before June and for this funds will have to be raised from the international market, Minister of State for Finance Rana Muhammad Afzal Khan said on Tuesday. The figure given by the minister is at odds with what the State Bank says Pakistan owes on its external debt service obligations till end of fiscal year. According to the central bank, the total amount Pakistan will …Read More

Moody’s says India recovering from demonetisation, GST; forecasts 7.6% growth rate

The Hindustan Times (February 28, 2018)

New Delhi: Moody’s Investors Service said on Wednesday Indian economy is starting to recover from the negative impact of demonetisation and disruption caused by GST roll out, but kept GDP growth estimates unchanged at 7.6% for 2018. In its global growth forecasts for 2018 and 2019, Moody’s said the Budget for fiscal year beginning April 1 (2018-19) includes some measures to stabilise rural economy that was…Read More

Japan grants &7.7 million for development projects in FATA

Express Tribune (February 27, 2018)

PESHAWAR: Japan announced on Tuesday to fund two projects for the United Nations’ Food and Agriculture Organisation (FAO) in the Federally Administered Tribal Areas (FATA) as per an agreement signed between the ambassador of Japan to Pakistan Takashi Kurai and the FAO Representative in Pakistan Minà Dowlatchahi in the presence of Federal Minister of National Food Security and Research Sikander Hayat Khan Bosan. According to a statement issued …Read More

German inflation slows more than expected in February

Business Recorder (February 27, 2018)

BERLIN: German inflation slowed more than expected to hit a 15-month-low in February, data showed on Tuesday, suggesting that price pressures in Europe’s largest economy are muted despite a robust upswing, rising wages and unprecedented monetary stimulus. German consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 1.2 percent year-on-year after an increase of 1.4 percent in the …Read More

Federal Reserve chairman tell congress US economy ‘remain storing’

The Guardian (February 27, 2018)

The US economy “remains strong”, the Federal Reserve chairman, Jerome Powell, told Congress on Tuesday as he signaled the central bank is on course to carry on gradually increasing interest rates in the coming months. In his first congressional testimony since his appointment, Powell painted an upbeat picture of the country’s economic health and dismissed recent wobbles in the stock market. “Some of the headwinds the US economy faced in previous years have ……Read More

Bank of Korea keeps interest rate steady at 1.5%

CNBC (February 26, 2018)

CNBC: Bank of Korea left its key interest rate unchanged on Tuesday, as expected, taking note of muted inflationary pressure and showing caution ahead of any further monetary tightening from the U.S Federal Reserve's policy meeting on March 20-21. The Monetary Policy Board voted on Tuesday to keep the seven-day repurchase rate at 1.50 percent in the last rate decision before Governor Lee Ju-yeol's term ends in March. In a conference…Read More

Reserves decline to $18.8bn

DAWN (February 23, 2018)

KARACHI: The foreign exchange reserves of the country fell by $139 million to $18.829bn during the week ended Feb 16, the State Bank of Pakistan (SBP) reported on Thursday. The foreign exchange reser¬ves have been taking a toll each successive week, posing the risk they could fall below the critical level that requires the country to have forex holdings to cover at least three months’ imports. The reserves held by the SBP also dropped to $12.704bn, …Read More

Budget Study Centre   Issue 10 February 28, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Next 10 years crucial for Pakistan’s economy: WB

DAWN (February 22, 2018)
MURREE: “Next 10 years are crucial for Pakistan to set a higher growth trajectory, with challenges arising on the economic front, due to lack of political consensus,” said the Country Director, World Bank, Patchamuthu Illangovan, on Wednesday. Addressing participants of an economic conference, Illangovan pointed out that Pakistan’s economy is facing short-term issues in the wake of rising external account deficit. “The government had held back …..Read More

UK borrowing at lowest level since financial crises

BBC News (February 21, 2018)
UK borrowing for the year to date is at its lowest level since the financial crisis, according to the Office for National Statistics (ONS). Public sector net borrowing, excluding state-owned banks, fell to £37.7bn between April and January, down £7.2bn on the comparable period. It is the lowest figure for the period since January 2008, the ONS said. It added that it is investigating the impact of Carillion's collapse on public sector finances. At the Budget in November, …..Read More

From tax year 2013 tp 2017: Except from salaried class, number of tax return filers shrinks

Express Tribune by Shahbaz Rana (February 21, 2018)
ISLAMABAD: In a disclosure that confirms the hollowness of tax base, the number of income tax return filers from all main sectors of the economy has contracted in the past five years and the only exception is the salaried class. The Federal Board of Revenue (FBR) on Tuesday presented sector-wise income tax return data of the last five years to the Senate Standing Committee on Finance. The data was nothing less than an admission of failure on the part of tax …..Read More

Provincial govt launches “Punjab Tourism for Economic Growth Project”

Pakistan Observer (February 21, 2018)
LAHORE: The Punjab government Planning & Development Department has launched “Punjab Tourism for Economic Growth Project”. The project launch ceremony was held at the newly restored Wazir Khan Mosque courtyard in the Walled City of Lahore. The launch ceremony marked the Planning & Development Department’s five-year (2017-2022) collaboration with the World Bank Group to develop Punjab’s tourism sector …..Read More

Fiscal deficit widens to 2.2pc in first six months

Pakistan Today (February 20, 2018)
ISLAMABAD: The debt-ridden government of Pakistan spent Rs 796.3 billion, which is 2.2 per cent of the nation’s GDP, more than it earned during the first six months of the current financial year ending June, according to a report the ministry of finance placed on its website Tuesday. The government of Prime Minister Shahid Khaqan Abbasi was able to collect taxes worth Rs 2.39 trillion during first six months of the current fiscal year through…Read More

Federal budget 2018-19 to be business friendly: Afzal

Pakistan Observer (February 19, 2018)
Faisalabad: State Minister for Finance Rana Muhammad Afzal Khan on Saturday said the federal budget 2018-19 will be business-friendly and utmost efforts would be made to make it tax free. He was addressing a function at the Faisalabad Chamber of Commerce and Industry (FCCI) in which draft of budget proposals were presented to him. The minister said that no doubt the government was facing multiple challenges but our effort was... Read More

Argentine economy grew close to 2.8pc in 2017-Treasury advisor

Business Recorder (February 19, 2018)
BUENOS AIRES: The Argentine economy grew “close to 2.8 percent” last year, Guido Sandleris, head of the advisory body to the Treasury Ministry, told a gathering of Japanese business leaders on Monday. The data, according to Sandleris, shows a clear recovery of the third-largest economy in Latin America after a contraction of gross domestic product of 2.2 percent in 2016. “Last year the Argentine economy grew close to….. Read More

US inflation rises faster than expected in January

Times of Malta (February 18, 2018)
A much anticipated report on US inflation showed that consumer prices rose faster than expected in January, a sign of firming inflation that bolstered expectations of higher interest rates. The Labour Department reported last week that the consumer price index grew by 0.5 per cent in the first month of the year against forecasts of a 0.3 per cent rise. Excluding volatile food and energy prices, the so-called core measure of inflation increased by 0.3 per cent ….. Read More

France to reduce debt burden in 2018-Finance Minister

Times of Malta (February 15, 2018)
France's government would take measures this year to reduce its debt burden in anticipation of higher interest rates, Finance Minister Bruno Le Maire said on Thursday. Le Maire told a conference at the Finance Ministry that there was no doubt that interest rates would rise by the end of the year and the only question was by how fast. "We have to reduce our debt because it exposes us to an increase in interest rates ... and we will take a certain number of measures in.…Read More

Japan economy grows for 8th straight quarter, longest since 1980s

Business Recorder (February 14, 2018)
TOKYO: Japan’s economy grew for the eighth straight quarter at the end of 2017, government data showed Wednesday, its longest period of expansion since the “bubble” boom days of the late 1980s. Gross domestic product figures fell short of expectations and represented a slowdown from the previous quarter, but analysts forecast continued growth nonetheless. GDP expanded just 0.1 percent in the last quarter of 2017, the Cabinet Office said, …Read More
 

India’s retail inflation slightly eases in January

Business Recorder (February 12, 2018)
NEW DELHI: India’s retail inflation slightly eased in January from a 17-month high in December but remained above the 4 percent medium-term target of the Reserve Bank of India (RBI) for the third straight month. India’s measure of consumer price inflation, the CPI index, rose 5.07 percent in January from a year earlier, data released by the Ministry of Statistics showed on Monday. Analysts polled by Reuters had predicted January’s rate would ease to …Read More
 

Provinces to get CPEC revenue through NFC

The Nation (February 11, 2018)
ISLAMABAD - The federal government would distribute the income generated by China Pakistan Economic Corridor (CPEC) projects among the provinces through National Finance Commission (NFC) Award. "Any increase in income generated by cpec projects will come into Federal Consolidated Fund for further distribution between Federation and provinces . Therefore, the impact of income generated by cpec projects will have positive impact… Read More
 
Budget Study Centre   Issue 9 February 1, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Govt plans to unveil budget 2018-19 in second week of May

Pakistan Today (February 8, 2018)
ISLAMABAD: The government is considering to unveil next financial year’s 2018-19 budget in the second week of May, as no major changes on taxation are expected to be pushed via Finance Bill 2018. As the incumbent government’s tenure nears its conclusion, it has sought go-ahead for budget from the National Assembly by end of May, as Senate approval needs 15 days for concluding its recommendations, reported ………Read More

DPC from WB, policy loans of ADB under threat in lieu of IMP report

Pakistan Today (February 8, 2018)
ISLAMABAD: Development policy credit (DPC) from World Bank and program loans from Asian Development Bank (ADB) are under threat as IMF’s upcoming report loom and questions over Pakistan’s ability to keep forex reserves over 2.2 months of import bill continue. Persisting slide in forex exchange reserves was increasing the risk on the external front and could stop the WB’s DPC and program loan in coming months, official ………Read More

European stock markets recover after sharp losses

The Guardian by Phillip Inman and Nick Fletcher (February 7, 2018)
European stock markets have rallied after sharp losses earlier in the week, with London’s leading share index gaining almost 2%. The FTSE 100 index of the most valuable companies listed in London rose 138 points to 7,279 on Wednesday, still well below its all-time closing high of 7,779 on 12 January. In New York, where the market rout began on Monday, the Dow Jones industrial average appeared on track for a second day………Read More

Russian inflation slows to 2.2pc y/y in Jan

Business Recorder (February 7, 2018)
MOSCOW: Russia’s consumer price index (CPI) rose 2.2 percent in January in year-on-year terms after rising 2.5 percent in the previous month, the statistics service said on Wednesday. Month-on-month inflation was at 0.3 percent from 0.4 percent in December. The year-on-year increase in the CPI was slightly below the Reuters poll of analysts who predicted a rise of 2.3 percent.…Read More

Business Plan and Budget for 2018 approved

Business Recorder (February 1, 2018)
K8MUZAFFARABAD: The services of Bank of Azad Jammu and Kashmir were appreciated in its 31st board meeting held here on Wednesday and approved Business Plan and Budget for the year 2018. The meeting was chaired by Dr. Ejaz Muneer, Chief Secretary Government of Azad Jammu and Kashmir, who is also the chairman of the bank’s board of directors. Imran Smad, Managing Director of the Bank while initiating the proceedings…....Read More

Economic growth depends on private sector progress: Ayesha

Pakistan Observer (February 1, 2018)
LAHORE: Provincial Minister for Finance Dr Aisha Ghous Pashsa said that Punjab government was determined to make Pakistan a developed country by enhancing the growth rate by improving the security and energy conditions for creating conducive environment for the private sector through providing them ease of doing business by integrating more departments in the portal. The economic growth depends on the progress of private sector…....Read More

IMF sounds the alarm on NFC award

DAWN (January 31, 2018)
ISLAMABAD: The Internat-ional Monetary Fund (IMF) has asked Pakistan to consider drastic changes to the next National Finance Commission (NFC) award due to the serious pressure it is placing on the federal government finances, as well as the macroeconomic imbalances that are arising from its implementation. In 2009, the PPP government passed the 7th NFC award that devolved the highest ever proportion of the funds in the federal …....Read More

Business community hails inauguration of Gawadar Free Zone, Expo

Pakistan Observer (January 30, 2018)
ISLAMABAD: Business community Monday hailed formal inauguration of the Gwadar Free Zone and Expo 2018 and urged the government to take steps for technology transfer in order to promote and develop the local industrial sector. They said the project was initiated under multi-billion dollars’ China Pakistan Economic Corridor (CPEC) project and inauguration of the first phase of Gwadar Free Zone would further help in promoting.....Read More

US GDP growth slowed to 2.6pc Q4, bringing growth in 2017 to 2.3pc

Business Recorder (January 26, 2018)
WASHINGTON: The world’s largest economy cooled in the final quarter of last year but 2017 still saw faster growth than 2016, according to government data released Friday. After two quarters of expansion above three percent, GDP slowed to 2.6 percent in the October-December period as business inventories fell while imports rose, according to the first estimate from the Commerce Department. That was slower than analysts expected and meant ………Read More

Budget 2018-19: Govt may tweak income tax slabs, EY Survey finds

The Hindustan Times (January 22, 2018)
New Delhi: The government is likely to tweak income tax slabs and rates in Budget 2018-19 to bring down the burden on individuals, while there is unlikely to be any change in the current taxation of dividends, according to a survey by EY. In a pre-budget survey by tax consultant EY, a wide majority of 69% of the respondents felt that the threshold limits for taxation would increase further in order to boost disposable income in the.…..Read More
 
Budget Study Centre Issue 8
January 24, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

PM announces one-time amnesty scheme on offshore assets

Express Tribune (January 18, 2018)
ISLAMABAD: Prime Minister Shahid Khaqan Abbasi announced on Wednesday that a one-time tax amnesty scheme on offshore assets will be offered to Pakistanis, while also saying that tax rates on personal income will be lowered amid his disapproval of the Federal Board of Revenue's (FBR) performance. The premier's dissatisfaction was not only limited to the tax machinery, as Abbasi also refrained from talking confidently about overall economic ... Read More

Modi launches $6.8bn refinery in Rajasthan

Dawn (January 17, 2018)
BARMER: Indian Prime Minister Narendra Modi on Tuesday launched the construction of a $6.8 billion refinery in the western state of Rajasthan, in the hopes of meeting the rising fuel demand. By 2030, India's demand for petrol and diesel is expected to go up by two-thirds to 170bn litres, as an expanding middle class spends on cars and air travel. The 180,000-barrel-per-day refinery and petrochemical ... Read More

Foreign direct investment drops 3pc despite growing inflows from China

Dawn (January 17, 2018)
KARACHI: Foreign direct investment (FDI) fell 2.8 per cent to $1.38 billion in the first half of 2017-18, although inflows from China rose 2.4 times, the State Bank of Pakistan reported on Tuesday. Data showed the pattern of inflows significantly changed recently. China now dominates FDI with a share of more than two-thirds in total investments. Beijing emerged first as the largest trading partner of Islamabad and now it has become the top foreign ... Read More

Government lowers additional borrowings to Rs 20,000 crore this fiscal

Times of India (January 17, 2018)
NEW DELHI: The government on Wednesday lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier. "Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from Rs 50,000 crore as notified earlier to Rs 20,000 crore," Economic Affairs ... Read More

Eurozone inflation revised up to 0.2% in November

Times of Malta (January 17, 2018)
Eurozone inflation was revised up to 0.2 per cent in November, rising slightly more than expected mostly because of a slowdown in the decline of energy prices, the EU statistics agency said yesterday. Eurostat previously estimated inflation at 0.1 per cent last month in the 19 countries sharing the euro. The monthly consumer price change was -0.1 per cent, slightly higher than the expected -0.2 per cent. The revision ... Read More

France's 2017 state budget deficit lowest since 2008

Business Recorder (January 16, 2018)
budget ministry said on Tuesday. The deficit came to 67.8 billion euros ($82.99 billion) last year, marking an improvement of 1.5 billion euros from 2016, the budget ministry said on Tuesday. The deficit came to 67.8 billion euros ($82.99 billion) last year, marking an improvement of 1.5 billion euros from 2016, the ministry said. It was also better than the 69.3 billion euros originally budgeted by the previous Socialist government ... Read More

First ever citizen's budget of District Charsadda presented

The Statesman (January 14, 2018)
CHARSADDA: Centre for Peace and Development Initiatives (CPDI) launched the first-ever Citizens' Budget of District Charsada with support of Saiban Development Organization. Jamshed Tariq, Project Coordinator CPDI Khyber Pakhtunkhwa said this is for the first time in Pakistan that citizens' budget was developed at district level. For the understanding of budget allocations, a citizens' budget is developed in jargon free and easy to ... Read More

World Economic Forum ranks India 30th on global manufacturing index; Japan Tops

Hindustan Times (January 14, 2018)
Press Trust of India: New Delhi/Geneva: The report, which analyses development of modern industrial strategies and urges collaborative action, has categorised 100 countries into four groups -- Leading (strong current base, high level of readiness for future); High Potential (limited current base, high potential for future); Legacy (strong current base, at risk for future); or Nascent (limited current base, low level of readiness for future). ... Read More

CPDI launches 'Citizens Budget' for Charsadda

Express Tribune (January 13, 2018)
CHARSADDA: Centre for Peace and Development Initiatives (CPDI) launched a first-ever Citizens' Budget of District Charssada with support of Saiban Development Organisation. Khyber Pakhtunkhwa CPDI Project Coordinator Jamshed Tariq said this is for the first time in Pakistan that citizens' budget was developed at district level. For the understanding of budget allocations, a citizens' budget is developed in easy to ... Read More

Chinese economy grew "around 6.9%" in 2017: premier

Daily Times (January 12, 2018)
Agencies: China's premier expects economic growth of around 6.9 percent for 2017, as he saw a "better than expected" outlook for the world's second-largest economy, state media said Thursday. The authorities will release official gross domestic product figures next week but Premier Li Keqiang has given his own forecast. "Over the past year, the Chinese economy has been on a stable and favourable development path, with its overall circumstances better excess ... Read More

Pak growth rate to reach average 5.9pc: WB Report

Business Recorder by Parvez Jabri (January 10, 2018)
ISLAMABAD: The World Bank (WB), in its recent report, has predicted that Pakistan economic growth would reach at an average 5.9 percent a year over the medium term on the back of continued robust domestic consumption, rising investment, and a recovery in exports. "In Pakistan, growth is forecast to pick up to 5.5 percent in FY2017/18, and reach at an average 5.9 percent a year over the medium term on the back of continued ... Read More

India to be fastest growing economy again in 2018: World Bank

Hindustan Times (January 10, 2018)
After conceding the top spot in economic growth among major economies to China for a year in 2017, India is likely to regain the position in 2018 with growth expected to accelerate to 7.3% in the year, according to the World Bank’s Global Economic Prospects released on Tuesday. The World Bank report projected China's economy to further slow down to grow at 6.4% in 2018 from 6.8% in 2017. The multilateral institution ... Read More

Pakistan procured $40 billion loans in last four years

Pakistan Today (January 08, 2018)
ISLAMABAD: Pakistan procured $40 billion of loans during PML-N's four-year tenure till end of October 2017. The figure is $6.2 billion higher than the one shared with the National Assembly last month, reported Express Tribune. As per data shared by Economic Affairs Division (EAD) with the National Assembly Standing Committee on Finance and Economic Affairs, gross foreign loan procurement from July 2013-October 2017 was recorded at $34.2 billion. This $34.2 ... Read More

Most Asian markets rise as 2018 rally extends

Daily Times (January 06, 2018)
The equity rally that has kicked off 2018 continued on Friday, with Asian markets picking up the baton from another set of records on Wall Street. Dealers are now turning their attention to the release later in the day of key US jobs data, which is expected to show the world's top economy continuing to improve. A forecast-smashing reading Thursday on private take-ups boosted optimism, which had already been bolstered by US tax cuts, healthy ... Read More

Canada trade deficit swells in November on surge of imports

Business Recorder (January 05, 2018)
OTTAWA: Canada's trade deficit grew to C$2.54 billion ($2.03 billion) in November from C$1.55 billion in October as imports posted their biggest surge in more than eight years and far outpaced the growth of exports, Statistics Canada said on Friday. The deficit far exceeded the C$1.20 billion shortfall estimated by analysts in a Reuters poll. Exports grew by 3.7 percent, the most in a year, on higher shipments of motor vehicles and consumer ... Read More

 
Budget Study Centre Issue 7
January 16, 2018

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Trump's growth boast in reach as factories boom, GDP could have topped 4% in best year since 2004

The Times (January 4, 2018)
The American economy is showing signs that it could hit President Trump's ambitious growth target after a report indicated that factories in the United States had enjoyed their best year since 2004. Manufacturing activity in the world's largest economy came in well ahead of economists' expectations last month, a closely watched report showed, suggesting that growth could have surged above 4 per cent in 2017, much faster than previously ... Read More

Economic indicators stay positive, LSM, exports witness growth

Business Recorder (January 4, 2018)
ISLAMABAD: Despite challenges, the performance of various sectors of economy showed impressive growth as depicted by different economic growth indicators. During the first five months of the current fiscal year, the exports have witnessed a growth of 10.49 percent over the corresponding period of Fiscal year 2016-17, while during the month of November, the exports increased by 12.35 percent compared to the exports of November ... Read More

US aid cut worries economists; souring ties with foreign donors feared

The News by Erum Zaidi (January 4, 2018)
KARACHI: US government's decision to wean Pakistan off its financial aids may sour the country's ties with international financial intuitions and could throw a spanner into much-needed foreign inflows, economists said on Wednesday. A former finance minister said the US decision seems to influence the various multilateral agencies/creditors, such as the International Monetary Fund (IMF), World Bank and Asian Development ... Read More

Turkey inflation still stubbornly high in December

Business Recorder (January 3, 2018)
ANKARA: Inflation in Turkey eased slightly in December after reaching the highest rate in 14 years the month earlier, but remained stubbornly high at almost 12 percent, in a continued headache for policymakers, according to statistics released Wednesday. Consumer prices rose by 11.92 percent year-on-year in December, the Turkish statistical institute said, down slightly from 12.98 percent in November, which was the highest ... Read More

Britain wants financial services included in EU Trade deal-Davis

Times of Malta (January 3, 2018)
Britain wants to include financial services in a trade deal with the European Union that covers a full sweep of economic areas, Brexit minister David Davis said on Tuesday.Davis said that any deal that left finance out would be "cherry picking", after the EU's Brexit negotiator Michel Barnier cast doubt on the inclusion of financial services in a free-trade deal. “We are looking at the full sweep of economic cooperation that currently exists and ... Read More

FBR on target to achieve annual collection target of Rs 4013 bln this year

Pakistan Observer (January 2, 2018)
ISLAMABAD: Federal Board of Revenue remains on track to achieve annual collection target of Rs 4013 billion. During first half of the current financial year, Federal Board of Revenue has recorded provisional net revenue collection of over Rs. 1722 billion as against Rs. 1466 billion collected during the same period of the previous fiscal year, by recording an increase of around 17.5% over the revenue collected during the ... Read More

Inflation spikes 4.6% in Dec 2017, hits 8-months high

The Express Tribune by Shahbaz Rana (January 2, 2018)
ISLAMABAD: For the first time in the past eight months, the inflation rate spiked 4.6%, showing the effect of government's policies including the increase in prices of petroleum products for end-consumers and levy of regulatory duty. "The impact of government's decision to devalue the rupee against the US dollar by about 7.2% is also expected to appear after a lag of a couple of months," said State Bank of Pakistan (SBP) Governor Tariq Bajwa. Measured by the ... Read More

Singapore's economy grew 3.5 percent in 2017: PM Lee

Business Recorder (January 1, 2018)
SINGAPORE: Singapore's economy grew 3.5 percent in 2017 on the back of improved productivity as well as a pick-up in the global economy, Prime Minister Lee Hsien Loong said on Sunday. Singapore’s trade-reliant economy has enjoyed a boost this year from an improvement in global demand, particularly for electronics products and components such as semiconductors. "Our economy grew by 3.5 percent ... Read More

Bond float not enough, Pakistan going to be IMF's customer again

Express Tribune by Jazib Nelson (January 1, 2018)
ISLAMABAD: Popular view of Pakistan's economy was quite optimistic at the start of 2017. Positive developments including successful completion of the $6.6-billion International Monetary Fund (IMF) programme, decent progress on China-Pakistan Economic Corridor (CPEC) projects and emerging market status for the Pakistan Stock Exchange (PSX) were behind the optimism. Government officials claimed at almost every ... Read More

The making of shadow budget

The News by Mustafa Nazir Ahmad (December 31, 2017)
The preparation of shadow budgets by opposition parties, think tanks and civil society organisations has become a norm in the developed world over the last quarter of a century. These alternative budgets offer analysis and perspective on what the government budget should contain in terms of spending and revenue generation. In short, a shadow budget offers an alternative vision to deal with the macroeconomic challenges ... Read More

Hungary's economy projected to grow by 4.3pc in 2018

Business Recorder (December 28, 2017)
BUDAPEST: Hungary's economic growth is expected to come in at 4.1 percent this year, and will accelerate to 4.3 percent next year, the Economy Ministry said in a statement on Wednesday. The ministry said that this year’s GDP growth was largely driven by a rise in investments, due to a pick-up in housing construction increasing use of development funds coming from the European Union and capacity expansion by large corporates ... Read More

'Foreign loans compromise sovereignty' says Rabbani

The DAWN By Parvaiz Ishfaq Rana (December27, 2017)
KARACHI: Senate Chairman Mian Raza Rabbani said on Tuesday foreign loans come with strings as lenders' lconditions infringe upon national sovereignty. If a nation has a choice, then it should opt for increasing exports by promoting the indigenous industry and making it competitive, he said while addressing the 41st Export Awards ceremony of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). "I'd suggest that if we have a choice ... Read More

The fall and fall of Pakistan's economy in 2017

The Express Tribune by Arsalaan Asif Soomro (December 26, 2017)
Whether this is due to Mr Ishaq Dar being pre-occupied during the year, trying to save himself and his boss from the aftermath of the Panama leaks, or merely because the anticipated growth of imports was foreseen in a naive manner, is a question that is behind us for now. With the grip on currency loosening, the picture alas seems to slowly be moving towards equilibrium. When the currency started slipping in December, there was no "inquiry" ... Read More

Govt. asked to announce PFC award without delay.

DAWN (December 25, 2017)
SWABI: The Pakistan Tehreek-i-Insaf-led Khyber Pakhtunkhwa government has been asked to announce the Provincial Finance Commission (PFC) Award 2017-18 under the Local Government Act, 2013, without further delay to give financial responsibility and authority to elected representatives of local bodies. The demand was made by members of Samaji Bahbood Rabita Council (SBRC) and Good Governance District Coalition (GGDC)" ... Read More

Venezuela: Economy shrank 16.5% in 2016: report

Express Tribune (December 24, 2017)
WASHINGTON: Venezuela's economy shrank a massive 16.5% in 2016, according to an official government filing to the US Securities and Exchange Commission (SEC). The oil-rich but impoverished country attributed the collapse to a contraction of 9.9% in the oil sector and 16.1% in the non-oil economy. The 150-page report, received on Thursday by the SEC, also reported inflation at 274.4%, and an unemployment rate of 7.5% in the calendar ... Read More

 
Budget Study Centre Issue 6
December 28, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Current account deficit increases to $6.4 billion

Daily Times by Khursheed Ahmad (December 21, 2017)
KARACHI: Pakistan's external financial position continues to deteriorate due to rising import bill as the country's current account deficit rose to $6.4 billion in the first five months of the fiscal year. The deficit was $3.3 billion in the same period last year. The current account deficit has increased to 4.5 percent of gross domestic product (GDP). The deficit increased by $1.4 billion in November. The increase in October was $1.2 billion, mainly due ... Read More

China shrugs off debt worries as Xi Takes firmer economic grip

NY Times (December 20, 2017)
SHANGHAI - It's Xi Jinping's economy now, and he isn't too worried about debt. China signaled its economic priorities on Wednesday at the end of a meeting of top Communist Party economic leaders with a statement indicating that President Xi is fully in charge. Labeled "Xi Jinping Thought on Socialist Economy With Chinese Characteristics," the statement called for trimming industrial overcapacity, controlling the ... Read More

Revenue collection, tax returns show growth, FBR Chief Tells Businessmen

Daily Times (December 20, 2017)
Karachi: federal board of revenue (fbr) chairman tariq mahmood pasha said on tuesday said that fbr had witnessed growth in revenue collection and returns filed so far, which increased by 26 percent to 1,075,000, as on december 19, 2017, compared to last year. Speaking at an interactive session during his visit to the karachi chamber of commerce and industry (kcci), he said that the credit for this growth ... Read More

Pakistan attracts $1.1bn foreign investment in 5M FY18

Daily Times by Khursheed Ahmad (December 16, 2017)
Karachi: Foreign Direct investment FDI continued to show encouraging growth as in the first five months of current fiscal year (July-November), 5MFY18, FDI posted substantial growth of 57 percent to $1,146.4 million as compared to $729.4 million invested during the same period of the previous fiscal year, FY16, State Bank of Pakistan data shows. China emerged as the single largest foreign investor in Pakistan with ... Read More

Country's direct investment surges by 57.2pc to $1.146.4bn in July-Nov 2017

Pakistan Today (December 15, 2017)
KARACHI: The country has received an amount of $ 1.146 billion in the head of foreign direct investment (FDI), up by 57.2 per cent or $ 417 million during first five months of the current fiscal year compared to $ 729.4 million in the same period last year. Out of the total investment, Chinese companies invested $ 840.6 million in Pakistan during last five months. In November 2017, the country has received ... Read More

Will America's economy overheat in 2018?

The Economist (December 14, 2017)
WASHINGTON DC: USUALLY politicians pretend that good economic news on their watch is no surprise. But America's recent growth figures have been so positive that even the administration of President Donald Trump has allowed itself to marvel. "It's actually happening faster than we expected," mused Mick Mulvaney, the White House budget chief, in September, after growth rose to 3.1% in the second quarter. (Mr Trump in fact ... Read More

Federal Reserve raises interest rates as attention turns to 2018

Independent by Howard Schneider (December 13, 2017)
The Federal Reserve has raised interest rates by a quarter of a percentage point, but has left its rate outlook for the coming years unchanged even as policymakers project a short-term acceleration in US economic growth. The move, coming at the final policy meeting of 2017 and on the heels of a flurry of relatively bullish economic data, represented a victory for a central bank that has vowed of continue ... Read More

ADB lowers India's GDP forecast for FY-18 to 6.7%

The Times of India (December 13, 2017)
NEW DELHI: The Asian Development Bank (ADB) on Wednesday lowered India's GDP (Gross Domestic Product) forecast for the current fiscal by 0.3 per cent to 6.7 per cent, attributing it to tepid growth in the first half, demonetisation and transitory challenges of tax sector reforms. It has also revised downward the GDP outlook for next fiscal beginning from March 2018 to 7.3 per cent from 7.4 per cent mainly due ... Read More

Remittances decline 2.57% to $1.7b in November

The Express Tribune (December 12, 2017)
KARACHI: Pakistan received remittances amounting to $1.576 billion in November 2017, which is 2.57% lower compared with $1.618 billion the country received in the same month of the previous year, according to data released by the State Bank of Pakistan (SBP) on Monday. Overall, overseas Pakistani workers remitted $8.021 billion in the first five months (July to November) of fiscal year 2018, up 1.28% compared with ... Read More

$14.6tr was the impact of violence on global economy in 2016

Express Tribune by Tahreem Hussain (December 11, 2017)
NORTHAMPTON: Global peace is the need of the hour. It has been estimated that more than 1.5 billion people live in countries that are affected by violent conflict and the gap between those countries which enjoy relative peace and those afflicted by conflict seems to be growing. Conflicts and resulting violence have a deep-rooted impact at all levels of the society. Although the human cost of being affected by ... Read More

Govt. looks to squeeze oil and gas sector to meet revenue target

Express Tribune by Zafar Butta (December 10, 2017)
ISLAMABAD: The Finance Division has tightened its noose around the Ministry of Energy (Petroleum Division) to collect Rs392 billion from the oil and gas sector to meet the budget target for financial year 2017-18. Sources said that following pressure, the Petroleum Division was forced to impose a petroleum levy not only on locally produced liquefied petroleum gas (LPG) but on imported LPG as well in a bid to collect Rs2 billion in ... Read More

Meeting discusses budget awareness

Express Tribune (December 08, 2017)
JHELUM: While devising the budget, it is imperative that requirements of transparency, public consent are met while rules and regulation are adhered to. This was stated by Jhelum District Finance Officer Sarfaraz Khan while speaking at a budget consultation programme. The programme organised by Centre for Peace and Development Initiatives (CPDI) and CRG in Jhelum. Network for Budget Accountability ... Read More

LGs flayed over budget rules' violations

The Nation (December 08, 2017)
JHANG - The Centre for Peace and Development Initiatives (CPDI), a non-profit organisation, demanded adherence to the Punjab Local Governments (Budget) Rules 2017, transparency and citizens' participation in the budget making process at district level. Addressing in district level budget consultation at Jhang, its local office-bearers said that first draft of the district budget be presented in April to ensure timely input ... Read More

 
Budget Study Centre Issue 5
December 12, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

K-P revenue authority generates Rs34b in Taxes

Express Tribune (December 7, 2017)
PESHAWAR: Khyber Pakhtunkhwa Revenue Authority (KPRA) has generated Rs34 billion in tax collections since its inception in 2013, according to KPRA Director General Tahir Aurakzai, adding this amounts to 56% of provincial tax revenue collected in 2016 and 2017. Speaking at a multi stakeholder's awareness and sensitization session on the revenue generation by KPRA, Aurakzai ... Read More

40 percent growth witnessed in company incorporations during November 2017

Pakistan Observer (December 6, 2017)
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) during the month of November 2017 registered 881 new companies. As compared to the corresponding month of last financial year, it represents a growth of 40 percent. The new incorporation raised the total number companies registered with SECP to 84,201. The massive increase in number ... Read More

US tax overhaul will increase debt and interest costs

Pakistan Today (December 5, 2017)
WASHINGTON: A U.S. tax overhaul will increase the government's need to issue more Treasuries as interest costs on the country's debt become a larger drain on the budget. The U.S. Senate on Saturday approved a tax rewrite, which the Congressional Budget Office has estimated would double the deficit over the coming decade to around $2.8 trillion. That would add to the worsening ... Read More

Canada economic growth slows to 1.7pc in 3Q

The Nation (December 4, 2017)
OTTAWA - Canada's economy grew at a much more modest annualized rate of 1.7 percent in the third quarter, as Canadians curbed their spending, the government statistical agency said. Exports fell while imports were flat, business investment weakened, and household outlays pulled back slightly from the previous quarter said Statistics Canada. The figure was close to the 1.6 percent growth ... Read More

Pakistan's economy has a bumpy ride ahead but the future is bright, study says

The DAWN by Afshan Subohi (December 4, 2017)
PAKISTAN'S future holds promise despite all what people experience, read and hear in a country that seems to fray at the edges. It would sure be a bumpy ride ahead but there is slim chance of a derailment, a study says. The picture 'Pakistan State of Future Index' paints is not a grim one, and, with right adjustments, the chances are real that the country could become a fairly stable, growing state ... Read More

FBR notches 20pc increase in revenue collection for July-November 2017

Pakistan Today (December 2, 2017)
ISLAMABAD: Tax collection went up by 20 per-cent during July-November period of financial year 2017-18 touching Rs1.302 trillion, the Federal Board of Revenue revealed on Thursday. During November, FBR collected Rs270 billion, rising 24 per-cent compared to same period last year (SPLY) but still recording a deficit of Rs24 billion, reported Express Tribune. Tax refunds of Rs13 billion were ... Read More

Study urges involvement of all stakeholders in budget preparation

The News (December 1, 2017)
PESHAWAR: A study conducted by the Centre for Peace and Development Initiatives (CPDI) suggested that there was a dire need to discuss the district budgets with citizens groups, civil society and media for achieving the local development agenda. 
It said there were several lacunae in the district budgets due to the absence of planning officers. The study said the local body ... Read More

India's economy rebounds from three-year low

Business Recorder by Parvez Jabri (December 1, 2017)
NEW DELHI: India's economy picked up in the second quarter, official data showed Thursday, rebounding from a sharp slump in the wake of government reforms that dragged growth to three-year lows. Figures from the Central Statistics Office showed Asia's third-largest economy accelerated after five quarters of slowing growth, as the impact of a sudden cash ban and launch of a nationwide tax receded. GDP ... Read More

With fiscal deficit at 1.2pc, first quarter shows strong financial performance

Business Recorder by Fawad Maqsood (November 29, 2017)
ISLAMABAD: With fiscal deficit recorded at 1.2 per cent of the gross domestic product (GDP), the federal government's financial operations and debt statistics for first quarter of the current fiscal year show strong performance and prudent expenditure. On one hand, revenue collection, especially tax revenue collection, registered a strong growth of over 20 per cent during the first quarter ... Read More

Govt. puts ADB's $990-million smart-meters project on hold

Express Tribune by Shahbaz Rana (November 29, 2017)
ISLAMABAD: In a development that may affect relations with a Manila-based lending agency, Pakistan has decided to put on hold a $990-million (Rs105 billion) smart metering project that was meant to introduce advanced infrastructure in power distribution companies. The Asian Development Bank (ADB) wanted Pakistan to implement the Advanced Metering Infrastructure (AMI) project, but the Ministry of Power and ... Read More

Tackling trade deficit by facilitating exports

Express Tribune by Aadil Nakhoda (November 27, 2017)
KARACHI: The Pakistan Bureau of Statistics (PBS) reported that the trade balance deficit in FY17 stood at $32.6 billion. This was an increase of more than 36% over the value reported in FY16. Imports increased by more than 18%, while exports decreased by 2%. Although the relative decline in exports is marginal, it is disconcerting that exports are currently at $20 billion. On the other hand, imports have increased ... Read More

Concerns over delay in PFC award

Dawn (November 24, 2017)
TOBA TEK SINGH: The Centre for Peace and Development Initiatives (CPDI) has expressed concerns over a delay in the announcement of Punjab Provincial Finance Commission (PFC) award. In a press conference here on Thursday, CPDI District coordinator Muhammad Shahid said the process of devolution was incomplete without a formula to share the provincial divisible pool among the local ... Read More

 
Budget Study Centre Issue 4
November 23, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Singapore economy grows 5.2% in Q3, fastest in nearly 4 years; 2017 forecast raised to 3-3.5%

Strait Times (November 23, 2017)
SINGAPORE - Singapore's economy performed much better than expected this year due mostly to a strong showing in electronics, prompting the Ministry of Trade and Industry (MTI) to upgrade its 2017 gross domestic product (GDP) forecast on Thursday morning (Nov 23). Full-year GDP growth is now expected to be 3 per cent to 3.5 per cent. This is up from an earlier estimate ... Read More

Budget 2017: EU finally takes Britain off list of countries with excessive budget deficits

Independent by Jon Stone (November 23, 2017)
The European Commission has given a Budget Day boost to Philip Hammond, announcing that it will be taking the UK off the list of countries with too-large spending deficits. Naming the Chancellor personally, Pierre Moscovici, the EU finance's commissioner, told reporters in Brussels that the UK would be removed from the EU's Excessive Deficit Procedure (EDP). The economics chief said the UK had ... Read More

Rs 15bn spent on development Projects in Tharparkar

Daily Times (November 23, 2017)
MITHI: Dr Mahesh Kumar Malani, a provincial legislator associated with Pakistan People's Party (PPP), said that the PPP government was committed to improve living standard of the people of Tharparkar and had spent Rs 15 billion in development projects in the last nine years. He expressed these views while speaking with a delegation from Pakistan Federal Council of Columnists, visiting Mithi ... Read More

Widening UK budget deficit hands Hammond a headache

The Guardian by Richard Partington (November 21, 2017)
Britain's deficit unexpectedly widened in October, handing Philip Hammond disappointing news on the eve of the budget.  Public sector net borrowing last month excluding the nationalised banks, grew by £500m to £8bn compared with October a year ago, according to the office for National Statistics (ONS). City economists expected the deficit, which is the gap between government spending and tax receipts, to improve by £500m to stand at £7bn ... Read More

Pakistan hasn't defaulted once on its debts since independence

Pakistan Today (November 21, 2017)
LAHORE: Pakistan joined the fray of six other nations susceptible to possible risk of defaulting on its debts as its credit-default swaps increased in October and are near its highest levels since June. Interestingly, Pakistan hasn't defaulted even once on its debts since independence in August 1947. Last week, Bloomberg reported about risk-premium on emerging market sovereign bonds decreased seven basis points ... Read More

EU cuts funding to Turkey in 2018 budget

AFP DAWN (Sunday November 19, 2017)
BRUSSELS: An EU 2018 budget deal was announced Saturday that cuts funds destined to Turkey, citing doubts about Ankara's commitment to democracy and human rights German Chancellor Angela Merkel had led calls for a cut to the funds, which are linked to Turkey's stalled bid to join the bloc, following mass-scale arrests in the country since the failed July 2016 coup. MEPs and member states have agreed to reduce the ... Read More

National debt may increase in FY 2018, says Moody's but will improve after

Press Trust of India (Sunday November 19, 2017)
New Delhi: Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody's said. In an interview to PTI, Moody's Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government's commitment to fisca ... Read More

Only 6% of return filers pay most of direct taxes

The Express Tribune by Shahbaz Rana (Saturday November 18, 2017)
ISLAMABAD: About 65,000 Pakistanis, constituting hardly 6% of the income tax return filers in tax year 2016, paid 79% of direct taxes, exposing the shallowness of an already narrow tax base, according to statistics of the tax directory. Contrary to a mushroom growth in posh housing societies and luxury cars on roads, only 2,455 Pakistanis paid more than Rs10 million in income tax in 2016 ... Read More

Hammond's budget big five: cuts, pay, housing, roads and students

The Guardian by Phillip Inman (Saturday November 18, 2017)
Philip Hammond will face his toughest test as chancellor on Wednesday when he stands up to deliver his third and most important budget statement. By comparison, the  2016 tasked with formulation of annual budget do not bother to conduct pre budget consultative sessions with public and their representatives. The seminar was organized by citizen network for budget accountability (CNBA) with the support of partner organizations ... Read More

Peoples participation in budget making process urged

Frontier Post (November 17, 2017)
LAKKI MARWAT: Speakers at a seminar have stressed the need for ensuring people's participation in budget making process, saying that the quarters concerned tasked with formulation of annual budget do not bother to conduct pre budget consultative sessions with public and their representatives. The seminar was organized by citizen network for budget accountability (CNBA) with the support of partner organizations ... Read More

Transparency & citizens participation in budget making process sought

The News (November 15 2017)
PESHAWAR: The Centre for Peace and Development Initiatives (CPDI) has launched “Study of Budget Making Process at District Level in Khyber Pakhtunkhwa" which called for transparency and citizens' participation in the entire exercise. The study revealed transparency and citizens participation in budget making process was found lacking at district level. in Khyber Pakhtunkhwa. ... Read More

Cabinet allows $3b borrowing through Sukuk, Eurobonds

Express Tribune (Tuesday 14 November 2017)
The federal cabinet has allowed immediate borrowing of up to $3 billion from international debt markets by floating three sovereign bonds and has also waived a dozen taxes to make deals attractive for investors. Instead of tabling a summary in a cabinet meeting, the finance ministry got approval of the cabinet by circulating the summary among its members earlier this month. This is surprising as the federal cabinet meets every week. Pakistan ... Read More

 
Budget Study Centre Issue 3
November 09, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

The budget will show whether the Tories really care about 'just managing' families

Frances Ryan (Thursday 9 November 2017)
In politics, there are some ideas that are good in theory but don't work in practice. Then there are those that were always going to cause harm but turn out to be more damning than even the policy's architects could have imagined. Increasingly, the benefit freeze is the poster child for the latter category. The government is rightly coming under increasing pressure to halt the roll-out of universal credit. ... Read More

NDAA busts budget caps with $626 billion for defense

By Scott Maucione (November 8, 2017)
An authorization for a nearly $700 billion defense budget, a new commercial marketplace for the Pentagon to buy from and a bigger military end strength may become a reality as the House and Senate finished negotiations of the 2018 defense authorization bill this week. The bill will now go to the House and Senate for amendments and passage before being signed into law by the president. The bill includes $692.1 billion ... Read More

Iraq cabinet plans to cut Kurdistan share in 2018 federal budget

The Reuters (November 6, 2017)
BAGHDAD/ERBIL, Iraq (Reuters) - Iraq's cabinet proposed on Sunday to slash the Kurdish share of the country's revenue in the 2018 federal budget, a move that Kurdish officials said was aimed to further punish them for a Sept. 25 referendum on independence. A Kurdish man sells banners supporting the referendum for independence for Kurdistan in Erbil, Iraq September 21, 2017. ... Read More

Bountiful Budget to spur activities in 2018

The Borneo Post (November 5, 2017)
Specialists and industry leaders were optimistic following Budget 2018's announcement which allocated a sum of RM280.25 billion centered on improving the lives of Malaysians while ensuring that it covers all sectors of the economy. With overall spending allocated on areas of the economy ranging from education, agricultural, tourism, social subsidies to business incentives, OCBC Bank Treasury Research ... Read More

NHC approves budget for 5-year development plan, reviews ongoing projects

Daily Times (November 3, 2017)
ISLAMABAD: Communications Minister Hafiz Abdul Karim on Thursday presided over a meeting of National Highway Council (NHC), at the Ministry of Communications. Communications Minister of State Muhammad Junaid Chaudhry,Communications secretary, National Highway Authority chairman and other members of the council participated in the meeting. The meeting gave approval ... Read More

Budget office sees higher deficit than Liberal government's forecast

CBC news (November 1, 2017)
The parliamentary budget overseer is predicting a budget deficit in the current fiscal year that's almost $2 billion higher than was forecast in the government's fall fiscal update last week. The latest report from the parliamentary budget officer says the deficit this year will be $20.2 billion, while Finance Minister Bill Morneau's last prediction was $18.4 billion. (Morneau's economic update also included a $1.5 billion ... Read More

How economic slowdown is weakening India's armed forces

The dailyo (October 31, 2017)
The debate about the turbulence in India's economic health is worrisome for defense procurement plans. The defense budget has been declining over the past decades, with this year's allocation at a record low of 1.56 per cent of the GDP. With the RBI's latest report marking down the overall GDP figure for FY 2017- 18, the amount available in the government's kitty for the next fiscal would be even lower-especially considering ... Read More

Germany to confirm size of expected budget surplus next month

The Reuters (October 30, 2017)
BERLIN (Reuters) - Germany expects a budget surplus in 2017, but will not know its full extent until Nov. 9 when the finance ministry gets a new assessment of expected tax revenues, acting Finance Minister Peter Altmaier told broadcaster ARD on Sunday. A long-exposure picture shows a container ship, at a loading terminal, in the harbor of Hamburg, Germany April 6, 2017. REUTERS/Fabian Bimmer Altmaier declined to ... Read More

Government proposes $6B budget for 2018

The Phonm penh post (October 30, 2017)
The Council of Ministers on Friday approved a national budget for next year that calls for more than $6 billion in spending, the largest increase ever proposed for the Kingdom, with big boosts for education, defense and the arts. In an executive summary of the draft law released on Friday, the Council of Ministers proposes raising the budget by nearly $1 billion, stating that the budget increases are necessary to run ... Read More

EU Says Concerned Over Italy's 2018 Budget, Adding to Government's Woes

The New York Times (October 27, 2017)
BRUSSELS - The European Commission sent a letter on Friday to Italy's finance minister urging clarifications over the country's planned budget for 2018, adding to Rome's headaches ahead of elections due by next May. The move could force Rome to cut expenditures or raise taxes to comply with EU fiscal rules. Both are unpalatable measures before elections planned by May and amid deepening political divisions ... Read More

Liberals table budget bill to join China's Asian Infrastructure Investment Bank

The Globe and Mail (October 27, 2017)
The Liberal government has introduced a second large budget bill that includes a new law establishing Canada's participation in the Beijing- based Asian Infrastructure Investment Bank. Bill C-63, Finance Minister Bill Moreno's second budget bill of the year, enacts a wide range of measures related to his March budget. Like the first budget bill, it is more than 300 pages, repeating a practice that has faced opposition ... Read More

GB Council approves Rs 2.4b budget for 2017-18

The Nation (October 26, 2017)
SKARDU - The Gilgit-Baltistan Council on Wednesday approved a budget with a total outlay of about Rs 2.4 billion for financial year 2017-18 to Gilgit- Baltistan. Prime Minister Shahid Khaqan Abbasi, who is also the Chairman of the Council, chaired the meeting. The Prime Minister in his remarks at the meeting said that the PML-N government was committed to the ... Read More

Lockheed CEO warns of potential order hit if US 'budget constraints' are not fixed

CNBC (October 24, 2017)
Lockheed Martin CEO Marillyn Hewson warned Tuesday of potential order impacts if there are federal budget constraints beyond Dec. 8. A measure passed last month keeps the government operating through early December but also impacts the Pentagon's spending. The defense giant's CEO also urged Congress to address the budget caps to allow for more defenses spending that she sees as "vital to ... Read More

 
Budget Study Centre Issue 2
October 24, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

BRAZIL: Government to Send Congress Changes To The 2018 Budget Bill

The financial Tribune (October 22, 2017)
(RTT News) - The Brazilian government will send to Congress the changes to the 2018 budget bill by the end of next week, Planning Minister Dyogo Oliveira said Thursday after a meeting with the Senate's speaker Eunício Oliveira. "The speaker asked about the deadline for sending the complementary piece of the budget, and I said we are preparing everything to send it by the end of next week...Read More

Women farmers present 'charter of demand' to minister

The Business Recorder(October 21, 2017)
Oxfam Pakistan and Indus Consortium organized a rural women's convention where over 80 women farmers from five districts of Punjab, presented a "charter of demands" to the Minister Environment Protection Zakia Shah Nawaz.The charter demands the approval of the Climate Change Policy with proper resource allocation for smallholder women farmers and their participation in budget decision making. The convention...Read More

Budget Deficit Hits $666 Billion, an $80 Billion Spike for the Year

The flathead Beacon(October 20, 2017)
WASHINGTON - The federal budget deficit rose to $666 billion in the just-completed fiscal year, a spike that comes as Republicans are moving to draft a tax code rewrite that promises to add up to $1.5 trillion to the national debt over the coming decade. The sobering deficit numbers, released Friday by the Treasury Department and the White House budget office, followed Senate passage Thursday night of a 10-year budget...Read More

Academics want bigger budget for education sector in 2018

New Straits Times (October 19, 2017)
KUALA LUMPUR: Public universities will attract the cream of the crop when there is more money pumped into the sector. National Union of the Teaching Profession (NUTP) secretary-general Harry Tan said more allocation for public universities would mean better quality teachers and ultimately higher standards of instructions provided in schools.He said a larger budget for both the Education and Higher Education...Read More

Zimbabwe Says to Slash Budget Deficit despite Looming Elections

New York Times (October 18, 2017)
HARARE - Zimbabwe plans to cut its budget deficit by half next year to 4 percent of GDP, the national Treasury said, an ambitious goal at a time when the country is expected to hold a presidential vote that veteran President Robert Mugabe is set to contest. The southern African country has over the last four years failed to cut its deficit despite promises to do so, mainly due to high government spending on public sector...Read More

Colombia's Congress Approves $80 Billion Budget for 2018

US News (October 18, 2017)
BOGOTA (Reuters) Colombia's congress approved an $80 billion budget for 2018 on Wednesday, in a bid to retain the country's 'BBB' credit rating, and the finance minister said the government would not issue more international bonds. Policymakers have been grappling for over two years with the twin pressures of a weak economy, caused by the global drop in oil prices, and inflation...Read More

Financing Framework for dealing with climate change unveiled

The Dawn (October 17, 2017)
ISLAMABAD: Pakistan and the United Nations Development Programme (UNDP) unveiled on Monday a 'Climate Change Financing Framework' (CCFF) structured to respond to climate change and promote rationalizing climate finance, starting from the planning stage and creating a robust monitoring system that can gauge the adequacy and effectiveness of financing. The framework aims to make existing responses to the...Read More

Greek January-September Government Budget Surplus Slightly Below Target on Lower Revenues

The New York Times(October 16, 2017)
ATHENS- Greece's central government attained a primary budget surplus of 4.5 billion Euros (£4 billion) in the first nine months of the year, slightly below target due to lower tax revenues, finance ministry data showed on Monday. The government's target was for a primary budget surplus - which excludes debt-servicing costs - of 4.556 billion Euros for the January-to-September period, meaning the surplus missed the...Read More

J&K government issues guidelines to accelerate development works, streamline budget spending

The Indian Express (October 16, 2017)
To streamline departmental spending in order to accelerate the pace of development works in the state, the Jammu and Kashmir government on Monday told all its department heads that all unutilized funds above 30 per cent of their respective budgetary allocation would get automatically forfeited after December 31...Read More

The Republican budget is a gift to billionaires: it's Robin Hood in reverse

The Guardian (October 16, 2017)
After failing to pass a "healthcare" bill that would have thrown up to 32 million Americans off of health insurance, a bill that was more unpopular than the Wall Street bailout, Donald Trump and the Republican leadership in Congress are back. Now, they are pushing one of the most destructive and unfair budget and tax proposals in the modern history of our country - a plan that would do incalculable harm to tens of millions...Read More

Speakers for educating on Budget tracking process

DAWN News(October 16, 2017)
SWABI: Speakers at a workshop here on Sunday said that it would be difficult to use the available resources for solution of people's problems without educating them on budget tracking process and enabling them to play their role in utilization of funds. The workshop was organized by Centre for Peace and Development Initiatives (CPDI) under the European-funded project titled...Read More

State budget compromise remains elusive

The CT post(October 14, 2017)
HARTFORD - Legislative leaders say they are making steady, if slow, progress in negotiations on the long-stalled state budget for the two fiscal years that started July 1.Gov. Dannel P. Malloy isn't so sure. The governor is concerned that a compromise document on which he might be asked to sign off before an anticipated special session during the week of October 23 may contain unacceptable...Read More

Portugal draft budget sees 2018 growth of 2.2 pct

Kitco News (October 13, 2017)
LISBON, (Reuters) - Portugal's Socialist government expects economic growth to slow to 2.2 percent in 2018, down from 2.6 percent this year, the government's draft budget showed on Friday. The document forecast the budget deficit to fall to 1 percent of gross domestic product next year from 1.4 percent this year...Read More

Budget 2018 criticized for leaving Louth citizens with disabilities behind

Dundalk Democrat (October 12, 2017)
"The report revealed that according to summary results by the Central Statistics Office, based on last year's census, there are as many as 20,662 citizens or 13.6% of the population of Louth/East Meath recorded as having a disability."As the number of people affected by specific types of disabilities is not currently available - (this data from the 2016 census is expected in early November)-the Oireachtas Library used data...Read More

Gross debit to soar to 68.7 percent of GDP in 2018: IMF

The Business Recorder (October 12, 2017)
The International Monetary Fund has projected an increase in Pakistan government gross debt - by 0.7 percent - to 68.7 percent of the Gross Domestic Product (GDP) in 2018 against 68 percent in 2017. According to the IMF "Fiscal Monitor, tackling inequality," it has been projected that the government gross debt would rise to 68.7 percent of the GDP in 2018 and then decline to 68.2 percent in 2019...Read More

Ahead of elections: Pakistan restricts deficit, sparking hopes of fiscal discipline

Express Tribune (October 11, 2017)
ISLAMABAD: The Pakistan government has managed to restrict the overall budget deficit to Rs324 billion in the first quarter in the wake of strict controls over federal development spending, giving early hopes of fiscal discipline in an election year. In July-September quarter of the current fiscal year, the budget deficit of Rs324 billion was equal to...Read More

Budget Deficit Reduced to 0.9% of GDP-First Quarter FY18

The Research Snipers (October 10, 2017)
Last year Pakistan's budget deficit of the first quarter (July-September) of the financial year was noted at the number of rupees 438 billion whereas the recordings of this year are at rupees 324 billion. This year's budget deficit is because of the vigorous tax collections and minimum spending.Talking in terms of GDP the deficit generally decreased to 0.9% during the July to September quarter of the running financial year as compared to the...Read More

Delia: Budget confirms the government 'has no plan'

Malta Today (October 09, 2017)
Budget 2018 did not adequately address pensions, traffic and infrastructure, tourism and education, according to Opposition leader Adrian Delia in his first official reaction follow the budget presentation. On pensions, Delia said the government did not focus on the second pillar of healthcare. "The government left them where they were. The Nationalist party will see that pensioners are treated as a resource, not a burden...Read More

PN: Budget shows government lacks a plan

The times of Malta (October 09,2017)
The Opposition is ready to help the government because it is showing it has no plan for today, tomorrow or the future, Opposition leader Adrian Delia said in an initial reaction to the Budget. "If you were stuck in traffic today, you will still be stuck in traffic tomorrow. If you cannot make ends meet today, you will be in the same position tomorrow. If you have poor working...Read More

 
Budget Study Centre Issue 1
October 12, 2017

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Trump's New Budget Threatens to Kick Millions Off Food Stamps

The Root (October 09, 2017)
Although Donald Trump ran as a champion of the poor and working class (and many whites in those socioeconomic groups voted for him), the only thing the "president" seems to be draining is the federal budget for his golf outings. Adding insult to injury, a new budget resolution put forth by Trump and passed by the House of Representatives this week will push millions off of food stamps, leaving our most vulnerable-children and the elderly-food insecure, or even hungry. Newsweek reports that over $150 ... Read More

CSOs & citizens trained in skills to improve local governance

The News (October 07, 2017)
PESHAWAR: Members of several Civil Society Organizations (CSOs) and citizens were trained in leadership and advocacy skills, citizen report card and budget tracking at a capacity building workshop arranged here to improve local governance. The Center for Peace and Development Initiatives (CPDI) arranged the workshop under a European Union-funded project. Titled "Democratic Local Governance for Development in Pakistan", the project is jointly implemented by CPDI and Friedrich ... Read More

CBO: Federal budget deficit rises to $668 billion

The Spokesman (October 06, 2017)
WASHINGTON - The federal government ran a $668 billion budget deficit for the just-completed 2017 fiscal year, according to a new government report. That's $82 billion more red ink than the government produced last year. The Congressional Budget Office based its findings on preliminary Treasury reports. The worsening deficit picture comes as Congress digs into its pockets for tens of billions of dollars more for hurricane relief. Lawmakers are also working toward a round of tax cuts that ... Read More

Budget plan sets the stage for Republican tax reform

The CS Monitor (October 06, 2017)
Washington - The House has passed a $4.1 trillion budget plan that promises deep cuts to social programs while paving the way for Republicans to rewrite the tax code later this year. The 2018 House GOP budget reprises a controversial plan to turn Medicare into a voucher-like program for future retirees as well as the party's efforts to repeal the "Obamacare" health law. Republicans controlling Congress have no plans to actually implement those cuts while they pursue their tax overhaul. That's especially so in ... Read More

House Approves Budget Plan that Would Cut Federal Employee Benefits

Government Executive (October 05, 2017)
House lawmakers voted 219-206 Thursday to approve a resolution outlining the body’s fiscal 2018 budget priorities, which include a number of controversial cuts to federal employees’ retirement and benefits programs. The House’s budget resolution (H. Con. Res. 71) asks 11 committees to come up with a total of $1.5 trillion in spending cuts through budget reconciliation, setting the stage for Republicans' ... Read More

Morneau prepares fall update as PBO report shows improving federal finances

The Globe and Mail (October 06, 2017)
Finance Minister Bill Morneau is preparing a fall update that is expected to show the federal fiscal landscape is improving along with the strengthening economy. Mr. Morneau met with private-sector economists Thursday in Toronto to hear their assessments and recommendations. While they did not release their numbers, the consensus forecasts for GDP growth have increased to about 3 per cent for 2017, up from the ... Read More

CPEC toll income to be thrice the budget of Pakistan: BoI

The News (October 05, 2017)
LAHORE: Only the toll income generated by the route of China-Pakistan Economic Corridor (CPEC), after the completion of the project by 2030, will be three times of the national budget of Pakistan, an official said on Wednesday. “It is on top of the business, economic, and employment creating activities of special economic zones (SEZs), and other industries,” Zulfiqar Ali, director Board of Investment (BoI) said while briefing Lahore Economic Journalist ... Read More

Senate Budget Committee advances 2018 budget plan

Washington Times (October 05, 2017)
The Senate Budget Committee advanced its 2018 fiscal blueprint on Thursday, moving forward on Republican plans to fast- track a tax reform package hours after the full House passed its own 2018 spending outline. The approximately $1 trillion spending plan for 2018 that advances to the Senate floor projects a $641 billion deficit for the current fiscal year, but ... Read More

Lawmakers Urge Cuts That Have Least Impact on Services

The US News (October 05, 2017)
HELENA, Mont. (AP) - A legislative committee is asking Montana's governor to make budget cuts that have the least impact on services to vulnerable citizens. The Legislative Finance Committee met this week to review $227 million in proposed cuts ... Read More

House Passes Budget Blueprint, Taking Step Toward Tax Overhaul

The New York Times (October 05, 2017)
WASHINGTON - The House took the first major legislative step Thursday toward enacting a promised overhaul of the tax code, approving a budget blueprint that would allow a future tax bill to pass Congress without any Democratic votes. ... Read More

Karak nazmi's claims of budget approval contested

The Dawn (October 04, 2017)
KARAK: District nazim Dr Umer Daraz Khattak on Tuesday claimed that a provincial committee headed by local government minister Inaytullah Khan had accorded approval to the budget of Karak for 2017-18 ... Read More