FBR Taxes.

  1. In emerging market countries, tax to GDP ratio is around 16 percent but in Pakistan it is 8.6 percent at the moment. We plan to raise this ratio to 9.2 percent of GDP during next financial year. In 2017-18, we left this ratio at 11.1 percent.

  2. Gross Deficit: Gross deficit that stands at 8.6 percent of GDP during the current fiscal year will be decreased gradually. In the next fiscal year, it will be decreased to 4.9 percent. Likewise, overall primary balance that is currently -2.4 percent of GDP, will be improved

    to +0.19 percent during the next fiscal year.

  3. Trade deficit: Our Government is taking concrete steps to increase exports and arrest the growth in imports so that trade balance can be improved and price of dollar is corrected automatically. The imports which are expected US$76 billion upto this year, will be decreased to the level of US$ 70 billion during the next fiscal year. Our exports are

    US$ 31.3 billion currently, steps will be taken to increase exports to US$ 35 billion during next fiscal year. With these steps, current account balance of -4.1 percent of GDP will be decreased to -2.2 percent during next fiscal year.

  4. Remittances: During current fiscal year foreign remittances are expected at

    US$31.1 billion. It is estimated that remittances will increase to US$ 33.2 billion during the next fiscal year.

  5. National Debt Servicing: This year total interest payment expenditure will be Rs 3,144 billion. Out of which domestic interest payment is estimated Rs 2,770 billion and external interest payment is estimated at Rs 373 billion. In the next financial year, payments under this head is estimated to reach Rs 3,950 billion out of which Rs 3,439 billion will be domestic and Rs 511 billion will be foreign debt servicing.

  6. Public Debt: Public dept in 2017-18 was Rs 25,000/- billion. In March 2022 it rose to

    Rs 44,365 billion i.e. 72.5% of GDP. We decreased the pace of borrowing by controlling expenditures in the last two months of the current financial year. Under the law Governments borrowing limit is fixed 60% of the GDP.

  7. Under certain amendments in FRDLA, 2005, experts will be provided to Debt Management Office of Ministry of Finance. For efficient functioning, its mandate and powers are being enhanced so that management of debt can be founded on sound basis. At this moment I want to inform the house briefly that previous government while re- profiling debt, had planned to pay Rs 5,400 billion in 2029 in one go. Imagine...

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