Pakistan sets big Rs13 trillion revenue target for year to June 2025

Pakistan sets big Rs13 trillion revenue target for year to June 2025
Pakistan’s Finance Minister Muhammad Aurangzeb is presenting financial budget in the National Assembly in Islamabad, Pakistan on June 12, 2024. (Courtesy: @NAofPakistan/X)
Short Url
Updated 12 June 2024
Follow

Pakistan sets big Rs13 trillion revenue target for year to June 2025

Pakistan sets big Rs13 trillion revenue target for year to June 2025
  • Pakistan presents federal budget to strengthen case for new IMF loan agreement
  • Pakistan has projected sharp drop in fiscal deficit for new financial year at 5.9 percent of GDP

ISLAMABAD: Pakistan has set a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the year starting July 1, a near 40 percent jump from the current year, to strengthen the case for a new bailout deal with the International Monetary Fund.
The ambitious revenue targets for the fiscal year through June 2025 were in line with analyst expectations.
Key objectives for the upcoming fiscal year included bringing the public debt-to-GDP ratio to sustainable levels and prioritising improvements in the balance of payments position, the government’s budget document showed.
Pakistan has projected a sharp drop in its fiscal deficit for the new financial year at 5.9 percent of GDP, from an upwardly revised estimate of 7.4 percent for the current year.
GDP would expand 2.4 percent in the current year, missing the budgeted target of 3.5 percent, the government said in its economic review on Tuesday, despite revenues being up 30 percent on the year, and the fiscal and current account deficits being under control.
Pakistan will look to widen the tax base to avoid burdening existing tax payers to meet its targets, Finance Minister Muhammad Aurangzeb said while presenting the budget.
While Pakistan is expected to stick to fiscal prudence under a new IMF program, growth will stay constrained, said Abid Suleri of the Sustainable Development Policy Institute think tank.
“Many of the measures taken to achieve fiscal sustainability will impact growth negatively, at least in the near future,” he said.
Pakistan is in talks with the IMF for a loan of about $6 billion to $8 billion, as it seeks to avert a default for an economy growing at the slowest pace in the region.
But a recent economic uptick, falling inflation and an interest rate cut on Monday have stirred government optimism over the prospects for growth.
The key policy rate could fall further this year and economic growth would continue to rise, Aurangzeb had told reporters a day before presenting his first budget.


Pakistan signs agreement with UAE firm for expertise to drive foreign investment

Pakistan signs agreement with UAE firm for expertise to drive foreign investment
Updated 13 July 2024
Follow

Pakistan signs agreement with UAE firm for expertise to drive foreign investment

Pakistan signs agreement with UAE firm for expertise to drive foreign investment
  • Islamabad established the SIFC, a civil-military hybrid forum, in June last year to attract investment
  • The UAE consultancy firm will provide expertise over a period of 18 months focusing on a number of areas

ISLAMABAD: Pakistan’s Special Investment Facilitation Council (SIFC) has signed an agreement with an Emirati consultancy firm, AT Kearney Middle East Limited, for the promotion of foreign investment in the country’s diverse sectors, Pakistani state media reported on Saturday.
Islamabad established the SIFC, a civil-military hybrid forum, in June last year to attract foreign direct investment in agriculture, mining, information technology, defense production and energy sectors.
A team of AT Kearney and Pakistan’s Public-Private Partnership Authority officials held a detailed meeting with the SIFC national coordinator to discuss the roadmap for collaboration, the Radio Pakistan broadcaster reported.
“The UAE company will provide expertise over a period of eighteen months focusing on a number of key areas to drive foreign investment,” the report read.
“The agreement includes strategies for attracting investment in key sectors and conducting pre-feasibility studies for selected projects.”
The development comes amid a push for foreign investment by Pakistan, which has been facing low foreign exchange reserves, currency devaluation and high inflation.
The South Asian country is making desperate attempts to boost foreign investment and has reached a $7 billion loan deal with the International Monetary Fund (IMF) to support its $350 billion fragile economy.


At UNRWA summit, Pakistan reaffirms commitment to humanitarian aid, reconstruction efforts in Gaza

At UNRWA summit, Pakistan reaffirms commitment to humanitarian aid, reconstruction efforts in Gaza
Updated 13 July 2024
Follow

At UNRWA summit, Pakistan reaffirms commitment to humanitarian aid, reconstruction efforts in Gaza

At UNRWA summit, Pakistan reaffirms commitment to humanitarian aid, reconstruction efforts in Gaza
  • The statement came as UN chief appealed for funding for beleaguered UN agency helping Palestinian refugees in Gaza and elsewhere
  • UNRWA’s 30,000 staff provide education, primary health care and other development activities to about 6 million Palestinian refugees

ISLAMABAD: Pakistan reaffirmed its commitment to humanitarian aid and reconstruction efforts in Gaza during a United Nations Relief and Works Agency (UNRWA) pledging conference in New York, Pakistani state media reported on Saturday.
The statement came as the UN chief appealed for funding for the beleaguered UN agency helping Palestinian refugees in Gaza and elsewhere in the Middle East, accusing Israel of issuing evacuation orders that force Palestinians “to move like human pinballs across a landscape of destruction and death.”
UNRWA’s 30,000 staff provide education, primary health care and other development activities to about 6 million Palestinian refugees in Gaza, the West Bank, Jordan, Lebanon and Syria.
Pakistan has dispatched more than eight planeloads carrying over 2,000 tons of humanitarian aid to Gaza since the outbreak of Israel’s war on Gaza in October last year, the state-run Radio Pakistan broadcaster reported.
“In New York, Second Secretary of the Pakistan Mission to the United Nations Rabia Ijaz advocated for a comprehensive reconstruction plan for Gaza and reiterated readiness to partner in the reconstruction of educational institutions,” the report read.
She also called for an urgent implementation of a peace plan for Gaza as outlined in the UN Security Council resolutions.
Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
Since the beginning of Israel’s war, Pakistan has repeatedly raised the issue at the UN and other world forums, demanding international powers and multilateral bodies stop Israeli military actions in the Palestinian territory.
Israel’s latest evacuation orders in Gaza City have come with more civilian suffering and bloodshed.
Since the Hamas attack that killed some 1,200 Israelis on Oct. 7, Israeli ground offensives and bombardments have killed more than 38,300 people, mostly children, in Gaza, according to the Palestinian health ministry.


Pakistan, India Champions lock horns in World Championship of Legends final today

Pakistan, India Champions lock horns in World Championship of Legends final today
Updated 13 July 2024
Follow

Pakistan, India Champions lock horns in World Championship of Legends final today

Pakistan, India Champions lock horns in World Championship of Legends final today
  • Pakistan Champions won the first semifinal against the West Indies Champions in Northampton
  • India Champions defeated Australia Champions by 86 runs in second semifinal of the WCL 2024

ISLAMABAD: Pakistan Champions will face India Champions in a high-voltage final of the World Championship of Legends (WCL) 2024 at Edgbaston Stadium in Birmingham today, Saturday.
India Champions defeated Australia Champions by 86 runs in the second semifinal of the WCL 2024 which was played at the County Ground in Northampton on Friday.
Pakistan Champions won the first semifinal against the West Indies Champions at the County Ground, Northampton. The final is scheduled to be played at 8:30pm Pakistan time.
“The stage is set for a high-voltage clash as arch-rivals Pakistan and India Champions prepare to face off in the grand finale of the WCL T20 2024,” the WCL wrote on its official website.
Six teams competed in the tournament, including England, India, Pakistan, Australia, South Africa and the West Indies.
Hundreds of thousands of Pakistani and Indian fans are going to be on the edge of their seats worldwide, anticipating a fierce battle that will be etched in the cricketing history.
Pakistan squad:
Kamran Akmal, Misbahul Haq, Younis Khan, Shoaib Malik, Sohaib Maqsood, Sharjeel Khan, Umar Akmal, Abdul Razzaq, Shahid Afridi, Muhammad Hafeez, Aamer Yamin, Wahab Riaz and Saeed Ajmal
India squad:
Suresh Raina, Ambati Rayudu, Yusuf Pathan, Robin Uthapa, Naman Ojha, Saurabh Tiwary, Gurkreet Mann, Yuvraj Singh, Irrfan Pathan, RP Singh, HarbHajjan Singh, Vinay Kumar and Rahul Shukla


Pakistan PM calls for enhanced coordination with provinces for security in Muharram

Pakistan PM calls for enhanced coordination with provinces for security in Muharram
Updated 13 July 2024
Follow

Pakistan PM calls for enhanced coordination with provinces for security in Muharram

Pakistan PM calls for enhanced coordination with provinces for security in Muharram
  • Ashura, 10th day of Islamic month of Muharram, is the holiest event in the Shia Muslim calendar
  • It commemorates the 7th century death of Imam Hussain and his companions in Battle of Karbala

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called on the country’s interior ministry to improve coordination with provinces as well as Gilgit-Baltistan and Azad Kashmir regions for security during the month of Muharram, Pakistan state media reported.
Pakistan has historically experienced sectarian violence during Muharram, a significant month for Shia Muslims who observe mourning rituals to commemorate the martyrdom of the Prophet Muhammad’s (PBUH) grandson in the Battle of Karbala.
Ashura, the 10th day of the Islamic month of Muharram, is the holiest event in the Shia Muslim calendar and sees hundreds of thousands of Shia Muslims take part in religious gatherings and processions to mourn the passing of Imam Hussain.
PM Sharif held a meeting with Interior Minister Mohsin Naqvi in Islamabad, wherein the two figures discussed the law and order situation during the holy month, the Radio Pakistan broadcaster reported.
“Prime Minister Shehbaz Sharif has instructed to further improve harmony and coordination with provinces, including Gilgit-Baltistan and Azad Kashmir over security matters during Muharram and especially on Ashura,” the report read.
Muharram processions and gatherings take place amid tight security in Pakistan as militant groups have often targeted them in the past and killed of hundreds of people in the South Asian country.
Pakistan’s interior ministry said this month it had not made any decision on requests by provinces to suspend Internet service to ensure security in Muharram.
Pakistan’s most populous Punjab province also proposed a ban on all social media platforms for six days due to security concerns regarding thousands of religious processions.


Pakistan reaches new $7 billion loan deal with IMF, says lender

Pakistan reaches new $7 billion loan deal with IMF, says lender
Updated 35 min 22 sec ago
Follow

Pakistan reaches new $7 billion loan deal with IMF, says lender

Pakistan reaches new $7 billion loan deal with IMF, says lender
  • The new loan deal, which will last for 37 months, is aimed at strengthening fiscal and monetary policy as well as reforms
  • The program aims to capitalize on the hard-won macroeconomic stability achieved over the past year, says IMF’s mission chief

ISLAMABAD: Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan program, the IMF said on Friday, the country’s latest move to turn to the global lender for assistance in keeping its fragile economy afloat.
Pakistan completed a short-term $3 billion IMF program in April this year, with the release of a final tranche of $1.1 billion. The facility helped Islamabad avert a default last year. Pakistan’s Finance Minister Muhammad Aurangzeb said his government planned to seek a longer-term loan from the IMF to help stabilize the $350 billion economy after the end of the last program.
The IMF said the new loan deal, which will span 37 months, was aimed at strengthening fiscal and monetary policy as well as reforms to broaden the tax base, improve management of state-owned enterprises, strengthen competition, secure investment, enhance human capital, and scale up social protection through increased generosity and coverage in major welfare programs.
“The program aims to capitalize on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” IMF’s mission chief to Pakistan Nathan Porter said in a statement.
The deal, which is subject to approval by the IMF executive board, came after the government of Prime Minister Shehbaz Sharif presented its first budget in parliament last month, promising an increase of up to 25 percent in salaries of government employees and setting an ambitious tax collection target.
The finance minister said Pakistan wanted to collect Rs13 trillion ($44 billion) in taxes, which would be 40 percent more than the last fiscal year’s. He said the government would ensure an increase in the number of taxpayers the country from the existing 5 million people who paid taxes in Pakistan.
Analysts said the new budget of about $68 billion, up from $50 billion in the last year, was likely to land a longer-term IMF bailout of up to $8 billion to help stabilize the economy.