Fiscal deficit stands at 3.1% of GDP

Finance minister briefed about overall economic situation.


Our Correspondent February 21, 2012

ISLAMABAD: The finance secretary said on Tuesday that the fiscal deficit stood at 3.1% of the Gross Domestic Growth (GDP) during July 2011 to January 2012, according to a statement released by the finance ministry.

The figure excludes 1.9% of electricity arrears, which takes the actual budget deficit to 5 per cent or Rs1,047 billion. Hence, the government’s expenses exceeded its income by Rs1,047 billion from July to January, which is 5% of the total national output.  The deficit is even 0.3 per cent higher than the revised annual target of 4.7 per cent the government had set after the last summer floods.

The Adviser to Prime Minister on Finance and Revenue Hafeez Shaikh in a meeting held on Tuesday reviewed the overall economic and fiscal situation.

The adviser was informed that CPI inflation stood at 10.7% during the first seven months of current financial year against the preceding year’s 14.3%.

Revenue collection registered a growth of 27% Rs975 billion during the period under review against 770 billion collected in the same period last year.

Exports increased by 7.2%, foreign remittances registered a growth of 21% while foreign exchange reserves rose to $16.8 billion.

The meeting was attended by Planning Commission Deputy Chairman, FBR Chairman, Secretary Finance, Secretary Economic Affairs Division and officials of the finance ministry.

Published in The Express Tribune, February 22nd, 2012.

COMMENTS (6)

abdussamad | 12 years ago | Reply

I don't anyone is looking for a new IMF program. Pakistan isn't looking for one and the IMF is not offering one either. Pakistan's problems are quite well documented. Another IMF program is not going to help. We need to fix our own problems by reducing government expenditure and or increasing tax revenue. Until and unless that happens, hidden taxation through inflation will continue to wreak havoc on the economy.

meekal ahmed | 12 years ago | Reply

@abdussamad:

Good point!

You can cook all you want but you won't get another loan from the IMF unless you meet certain PRIOR ACTIONS as it is called. That is, actions are taken even before the program starts.

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