ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) goverment has estimated 3 per cent GDP growth for the ongoing fiscal year (FY21) and 4.2pc GDP growth for the next fiscal year (FY22).
For FY21, the government expects GDP growth rate at 2.9pc which is higher than the budgeted 2.1pc. The revised rate of inflation is at 8.7pc which significantly higher than the 6.5pc target. The government has also now revised budget deficit estimate for current fiscal year to 7.4pc of GDP against 7.1pc budget target while the debt-to-GDP ratio has been revised to 86.8pc instead of budget 87pc.
According to sources, the government has planned to allocate Rs450 billion for subsidies in the next fiscal year budget including, circular debt and dues that are to be paid to IPPs.
On the other hand, the IMF has projected Rs459 billion subsidies for the ongoing year and Rs530 billion for FY22.
Sources added that the MoF also proposed an Rs6,000 billion Federal Board of Revenue (FBR) target which is a Rs1,272 billion more than the revised target of the current fiscal year. Non tax revenue is expected to touch Rs1,900 billion.
MoF’s budget strategy paper also proposes Rs720 billion for Public Sector Development Programme (PSDP) for FY22.
The IMF in its fifth review of Pakistan’ economy projected Rs503 billion federal PSDP for ongoing and Rs627 billion for next fiscal year.