Pakistan’s fiscal deficit narrows to 4.2% in 10 months: finance ministry

Shahnawaz AkhterWeb Editor

29th Jun, 2021. 05:10 pm
Pakistan’s fiscal deficit narrows to 4.2% in 10 months: finance ministry

KARACHI: The fiscal deficit narrowed to 4.2 per cent of the GDP during 10 months (July-April) 2020/21 from the deficit of 5.3 per cent in the corresponding period of the last year, the Ministry of Finance said on Tuesday.

According to a monthly update issued by the ministry, a significant growth in tax revenues and prudent expenditure management resulted in better fiscal performance during the first 10 months of the current fiscal year.

“The fiscal deficit during July-April 2020/21 has been reduced to 4.2 per cent of the GDP (Rs2.02 trillion) from 5.3 per cent of the GDP (Rs2.22 trillion) in the corresponding period of the last fiscal year,” the ministry said.

The primary balance continued to remain in surplus and recorded at Rs159 billion, or 0.3 per cent, of the GDP against the deficit of Rs205 billion, or 0.5 per cent, of the GDP in the last fiscal year.

The ministry said the federal revenue receipts grew 10.5 per cent to Rs2.769 trillion during July-April 2020/21 against Rs2.505 trillion in the comparable period of the last year.

On the other hand total expenditure grew 2.3 per cent to reach Rs5.196 trillion against Rs5.078 trillion in the same period of the last fiscal year.

The minister said the economy had shown significant signs of economic recovery with the fast resumption of economic dynamism. In the latest budget 2021/22, the government has taken growth-oriented initiatives and will continue to follow the positive reforms momentum, which will help to boost the competitiveness of Pakistan’s economy and lay a strong foundation for a more robust, inclusive and sustainable recovery.

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