Tag Archives: Fiscal Policy

Pakistan Misses IMF Cash Surplus Target by Rs182 Billion Due to Punjab’s Performance Pakistan has failed to meet a major condition of the International Monetary Fund (IMF) to generate Rs342 billion in cash surplus from the four provincial governments. This shortfall, driven by Punjab’s underperformance, reached Rs182 billion, falling 53% short of the target in the first quarter of the …

Pakistan’s Forex Reserves Reach $11 Billion After 30-Month Gap Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), rose to over $11 billion as of October 11, 2024. This marks an increase of $215 million in a week and a significant milestone after 30 months. The reserves have grown for 12 consecutive weeks, reflecting an overall increase …

Banks Face Rs197 Billion Additional Tax for Lending to Government A tax advisory firm, Tola Associates, has projected that banks in Pakistan will face an additional income tax burden of Rs197 billion due to excessive lending to the federal government. This tax will be imposed on 27 banks—both domestic and foreign—that have significant operations in the country. Additional Tax Due …

The Government of Pakistan has initiated an aggressive plan to collect Rs450 billion in taxes through digital enforcement measures to meet this fiscal year’s ambitious Rs12.97 trillion tax target. This plan comes in response to challenges faced in tax collection, including a shortfall in the first quarter and concerns about a weak global economy. The Federal Board of Revenue (FBR) …

The federal government reduced its inflation forecast for August to a single digit on Friday, which could compel the central bank to consider a significant interest rate cut in the next monetary policy meeting. The Ministry of Finance’s monthly economic outlook projects inflation to range between 9.5% and 10.5% in August, with a further decline anticipated to 9% to 10% …

Introduction An official report from Pakistan’s Ministry of Economic Affairs has confirmed a critical shortfall in the government’s foreign funding efforts. The report, published on Tuesday, revealed that the government managed to secure only $426 million from international lenders in July, falling far short of the $9 billion in debt rollovers required to maintain financial stability. Debt Rollovers and IMF …

In a surprising move given Pakistan’s deteriorating fiscal condition and escalating public debt, the government has greenlighted 15 development projects amounting to a staggering Rs515 billion. This approval includes a significant $900 million foreign loan aimed at bolstering climate change efforts. The Central Development Working Party (CDWP), responsible for authorizing development projects, convened a meeting to review 18 proposals, ultimately …

In a bid to tackle the financial challenges plaguing Pakistan’s power sector, the federal government has unveiled plans to reduce current electricity tariffs. This initiative comes amid growing concerns over the sector’s significant financial risks and inefficiencies. The proposed measures aim to provide some relief to consumers while addressing the underlying issues within the power sector. The government’s strategy involves …