Pakistan’s debt falls from 88% to 84.7% of GDP: IMF

The domestic component of tax revenue collected by the FBR recorded a robust growth of 25%.

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  • According to the IMF report, revenue performance in the first quarter of the current fiscal year was strong.
  • One-off tax revenue inflows (around Rs30bn) also added to the overall result.
  • Non-tax revenues almost tripled in the first quarter of the current fiscal year.

debt

The International Monitory Fund (IMF) has appreciated Pakistan’s economic reforms in its recently published report. According to the IMF report, the economy is adjusting to the new policies of the current government.

Furthermore, in the first quarter of the current fiscal year, the budget extension has improved considerably. Government debt (including guarantees and IMF borrowing) fell to 84.7% of GDP from 88%.

“In FY 2019, the general government registered a primary deficit of 3.5% of GDP and an overall deficit of 8.9% of GDP, against its target of 1.8 and 7%, respectively”, added the IMF report.

According to the IMF report, the over-performance was driven by stronger than expected non-tax revenues, accompanied by double-digit growth in tax revenue net of refunds.

The report further added, revenue performance in the first quarter of the current fiscal year was strong.

Tax revenue performance was driven by three main factors:

  • Tax policy measures
  • Import developments
  • One-off events

On account of tax policy measures implemented at the beginning of FY 2020, the domestic component of tax revenue collected by the FBR recorded a robust growth of 25%.

Meantime, taxes collected at the import stage were influenced by a considerable decrease in imports, with a slump in all revenue categories except sales tax.

One-off tax revenue inflows (of around Rs30bn) also added to the overall result.

Non-tax Revenues

Non-tax revenues almost tripled in the first quarter of the current fiscal year, reaching 0.8% of GDP, about 0.4% of GDP higher than expected.


Also See:

Government To Introduce Additional Taxes Of Rs. 150 Billion To Meet The IMF Target

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    Chief Minister (7k + posts)

    Good work but if we cut losses in the likes of PIA and other govt owned enterprises, we can cut taxes across the board. I would start by closing PSM. It is a total waste of money. Let the PPP and PML pay their workers as they took bribes to hire them.

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