Pakistan debt reduced
Pakistan debt reduced |Pakistan’s debt reduced to 84.7% of GDP, says IMF Islamabad Pakistan’s government debt including collateral and International Monetary Fund debt has dropped from 88 percent of GDP to 84.7 percent. According to a recent report released by the International Monetary Fund IMF, this reduction in debt was primarily to reduce spending, register a basic budget surplus, and register a basic budget surplus, according to a Dawn newspaper report. Tax and non-tax revenue increased. The IMF planned the aforementioned progress with excellent government performance. The report said that in the first quarter of fiscal year 20-2019, a budget implementation by the current government improved, leading to a basic surplus of 0.6% of GDP and a gross deficit of 0.6%. The WTO said that “performance improvement was due to higher than expected increase in non-tax revenue and increase in tax revenue net of refunds. Meanwhile, imports have been facing difficulties due to imports, customs receipts, and other external sectors, while spending by the provinces continues to grow wisely.
However, the documents show that the fiscal year 2019 budget saw a central deficit of 3.5 percent and an overall deficit of 8.9 percent, while the target was set at 0.8 percent and 7 percent respectively. It was said that the level of revenue collection at the federal level fell to 2 percent of GDP, which was lower than expected, while total spending and the provincial financial balance were also increasing. According to the report, revenue shortfall occurred on grounds that should not have taken place in the fiscal year 2020. Delay in renewing telecom licenses, delay in the sale of public assets and weak amnesty scheme contributing to 1% of GDP while the shortfall in transferring State Bank’s profits to budget, exchange at the end of the fiscal year 2019 The losses related to the reduction in GDP increased the GDP by an additional 0.5%. Despite the government’s decision to raise cash deposits to finance a potentially unfavorable market situation, a reduction in financial debt and exchange rates resulted in government debt including securities and IMs. FD loans accounted for 88% of GDP.
Regarding the government’s performance in revenue recovery, the report found that overall revenue performed higher than the programmed estimate of 0.2% of GDP, with 34% growth compared to the first quarter of fiscal 2019. Given the tax policy measures implemented at the beginning of the fiscal year 2020, the taxpayer’s share of the tax collected by the FBR recorded a 25% increase. Sales of targeted and direct tax growth, such as eliminating tax exemptions, zero and low rates, were robust. In view of this, more than 40% of the total tax revenue in Pakistan is collected at the import stage, this reduction has a significant impact on the performance of the overall tax revenue which is the target of the GDP. 0.2% lower.
