The Finance Ministry is completing budget targets for the upcoming fiscal year, which will be presented to the National Assembly on June 10th, 2022. The macro indicator targets will be agreed at the National Economic Council (NEC) meeting next week.
The Finance Ministry is finalizing budget targets to present before the NEC meeting next week in Islamabad, which will be chaired by the Prime Minister.
According to sources, the Finance Ministry will present the budget to the National Assembly on June 10th.
The target for the Public Sector Development Program (PSDP) is expected to be established at Rs. 700 billion at the Annual Plan Coordination Committee (APCC) meeting on 4 June 2022 in Islamabad, which will be chaired by Deputy Chairman Planning Commission.
The APCC will present a GDP growth objective to the NEC for final approval, which will take place under Prime Minister Shehbaz Sharif’s chairmanship. The PM will provide his final approval of the macroeconomic indicators’ targets for the coming fiscal year, including GDP growth and PSDP allocation.
Officials are evaluating a GDP growth rate of roughly 5% for the upcoming fiscal year, according to sources. If Pakistan adopts the International Monetary Fund’s (IMF) severe terms for the resuscitation of the stalled loan programmed, GDP growth may decelerate.
The high interest rate on bank borrowing, the slowing of imports, the elimination of subsidies, and government spending may all have an impact on GDP growth in the coming fiscal year.
According to the sources, the government expects the country to earn $32 billion from goods exports in the coming fiscal year. The country’s imports could drop to $67 billion in the coming fiscal year, down from more than $75 billion in the previous fiscal year.
The country’s remittances from abroad workers are also expected to hit $30 billion in fiscal year 2022-23, according to budget planners. According to preliminary calculations, the current account deficit will continue at $13 billion.
The Finance Ministry has also set a goal of Rs. 3523 billion for interest and debt payments.
The Federal Board of Revenue (FBR) is also evaluating several tax suggestions in order to determine the tax collection target for the upcoming fiscal year, which is expected to be Rs. 7.2 trillion. Defense spending is expected to be around Rs. 1586 billion.