Pakistan's Pre-budget scenario.

Byline: Vaedy Xiao

Former finance minister Asad Umar, who made a speech at the extra-budgetary consultation and scheduled conference in Islamabad (02.04.19) indicated full agreement with thoughts on "elite capture" and "inheritance tax".

The financial crisis may be the biggest headache for the new Prime Minister of Pakistan. Whether the emergency budget can effectively improve the deficit and trade deficit, then persuade the IMF to provide assistance is still unknown.

On September 19, 2018, the new Pakistani government led by Imran Khan took office in a few weeks and launched an emergency budget to solve the budget deficit and trade deficit problem through increasing tax and savings. He aimed to relieve the financial situation.

Imran Khan believed these measures are expected to improve Pakistan's fiscal position to meet the conditions needed to obtain assistance from the International Monetary Fund (IMF). Many economists expect that Pakistan needs assistance from the IMF. The new Pakistani government has expressed that seeking help from the IMF is one of the many options, which the government has considered it to solve its financial difficulties so far. Debt inflation, extremely low foreign exchange reserves and increased trade-imbalances have left the country in financial difficulties.

Government of Pakistan is considering to increase the salary and pension of government employees of Pakistan

According to the British 'Jane's Defense Industry' report on April 30, 2018. In April 2018, Pakistan announced that the defense budget for 2018-2019 was about 1.1 trillion rupees. And the defense budget for the new fiscal year has increased by 20% year-on-year, accounting for the government's new wealth. 19% of the total annual budget, accounting for about 3.4% of GDP.

Human cost expenditure including military salaries but no pension, about 422.9 billion rupees, substantial growth of 31% year-on-year. The tangible equipment expenditure including the procurement of weapons and equipment is Rs. 283.3 billion, a year-on-year increase of 16%. The operating expenses of the armed forces were Rs. 253.4 billion, a year-on-year increase of 12%. Construction project expenditure is Rs. 141.2 billion, a year-on-year increase of 10%. The salary of federal employees and pensions have increased by 10% (about 85% of the total number of pensioners).

Minimum pension increased from 6,000 to 10,000 rupees, 10% temporary...