Pakistan Budget for the FY 16/17 targets massive increase, a whopping 16%, in tax revenues. The figure was unveiled by Finance Minister Ishaq Dar on Friday while delivering on the elements of the new budget. The budget would target a fiscal deficit of 3.8% of GDP, a 0.5% decrease compared to FY 15/16. While speaking in the parliament regarding Pakistan budget, Dar stated that the government was aiming to push Pakistan’s low tax-to-GDP ratio above 10% and raise tax revenues from PKR 3.42 trillion to PKR 3.95 trillion.
Previously the government was targeting economic growth at 5.5% for the fiscal year 15/16 however, the growth fell short at 4.7%. Nonetheless, the figure was still the highest in the last eight years. This can primarily be attributed to a major slide in oil prices which bolstered economy and industry in Pakistan. Moreover, investor confidence seems to have made its way back to Pakistan. Dar was confident that the country was moving forward. He said,
Economic indicators reflect our performance. I am thankful to Allah [God] that we are given an opportunity to present budget for the fourth time. Our each budget was better than the previous ones.
A massive PKR 4.39 trillion was attributed to Pakistan budget for the fiscal year 16/17 while targeting tax revenues at PKR 3,104 billion. Dar stated that inflation was the lowest in the last decade at 2.82% and fiscal deficit was brought down to 4.3%. He added that tax collection grew by 60% in the last three years and will continue to rise. As per Pakistan budget, Pakistan is targeting foreign exchange reserves at $30 billion. The reserves touched $20 billion in fiscal year 15/16 which already was an all-time high. The industry is giving off mixed reactions to the budget as of now. More updates on Monday.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.