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Economic growth: perception may be different from reality

  With announcement of the budget, it has been widely documented that inflation will be on a rise. We have already witnessed devaluation with the government resorting to the new IMF program. Dollar has crossed Rupees 100 per USD and is expected to further slide reaching Rupees 110 per USD by the close of this year, hence expected to reflect in higher prices across the board. No relief has been …

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Difficult act of balancing

  The current financial year (2012-13) is likely to close on a pessimistic note with: 1) looming balance of payments crisis, high budget deficit, exports proving dismal for financing imports but above all country continue to suffer from ‘trust deficit’. The conditions are marred by general elections for the time being because the caretaker government has no mandate to take some crucial decisions, including finalizing terms and conditions for the …

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Political economy of the budget

  Unrealistic revenue targets weigh on trade and industry growth It rightly said that the budget is the most powerful fiscal instruments at the disposal of the government to implement political commitment and development agenda made public during electioneering campaigns; however the story takes a turn when a political party voted to power. Almost every democratically elected government made promises rather tall claims to take care of Public Sector Development …

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Is there any incentive for investment?

  Even a cursory look at the budget proposals suggest that the entire focus of the government is on revenue mobilization rather than enhancing size of GDP and accelerating growth rate. Though, the incumbent government aims to achieve a double digit growth the necessary impetus are missing, the most obvious being the proposed allocation for the public sector development program (PSDP). Historically, the successive governments in Pakistan have been making …

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Current vs development expenditure

  If one looks at the composition of annual budget, one point is very clear that revenue collection is barely enough to meet the current expenditure. Often, amounts are borrowed to meet the shortfall and almost the entire developmental expenditures are financed through aid, grants and softer loans acquired from multilateral financial institutions. The budget for next financial year is not likely to be very different from the previous budgets. …

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Overview of Pakistan federal budget 2015-16

  The latest federal budget for the fiscal year 2015-2016 has been recently revealed out of which the outlay is 91 per cent higher than what was revised earlier in the fiscal year. The Finance Minister, Mr. Ishaq Dar presenting the budget 2015-16 to the National Assembly claimed that the budget does include measures with respect to employment, improving the exports of the country as well as focusing on helping …

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Post budget analysis: impact on sectors

  The government has announced the budget for the year 2015-16 which is being met with mixed reviews. Some believe that the budget will increase inflation there by squeezing the middle class while others have their own opinion on each of the economic sectors. In addition, this year’s tax has brought in some of new sectors under the tax net. Summary of the budget for 2014-15 and key features with …

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Public sector development program fy2015: An overview

  The National Economic Council has approved National Development Program for FY2015 at Rs1,175 billion, which is larger by 1.7 percent when compared to budget predicted in FY2014. Total National Public Sector Development Program (PSDP) for FY2015 is 4 percent of GDP. The development program of FY2015 comprises of Rs525 billion as federal PSDP counting international aid of Rs102 billion and Rs650 billion for provincial ADPs counting Rs90 billion international …

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