Tag: Fiscal

Government to borrow from market to bridge fiscal deficit

ISLAMABAD - The government has reached an understanding with the State Bank of Pakistan (SBP) that it would borrow from the market to bridge fiscal deficit if the projected external inflows did not materialise during the current fiscal year. An official source said that decision was finalised after the central bank expressed concerns over the government borrowing if projected external inflows did not materialise during the current fiscal years.
Worries were related to the

Government looking at ‘other options’ to bridge fiscal deficit

ISLAMABAD - Following a refusal by the International Monetary Fund (IMF) to revive the suspended $11.3 billion standby arrangement until economic reforms are implemented, the government has started looking at other options to meet its rising fiscal deficit.
An official source said that at present, the government was in a stable position, as exports were expected to increase to $22 billion and remittances of $10 billion were estimated during the current financial year. "With these

Fiscal deficit mounts to Rs 491b, NA told

ISLAMABAD - The National Assembly was told on Friday that the overall fiscal deficit of the country during the first half of the current fiscal year (July -December 2010) has mounted to Rs 491 billion. In a written reply, the Finance Ministry also informed the house that the government from March 2008 to December 2010 had borrowed Rs 1.1 trillion from the State Bank and other scheduled banks.
"The interest paid by government on loans (borrowing from banks) during the year 2010-11

Centre blames provinces for fiscal deficit

KARACHI - The federal government, which is again haunted by soaring international oil prices that would increase the country's woes on the inflation and balance-of-payment fronts, has held the provinces responsible for the widening fiscal deficit.
The country is also faced with a longstanding challenge of circular debts which, the economic managers said, have again ballooned to Rs 300 billion due to power tariff differentials. The federal government in a bid to protect the

Pakistan promises fuel price and tax reform, fiscal overhaul

WASHINGTON - Pakistan's ambassador to the US defended his government's decision last week to reverse an unpopular increase in fuel prices, insisting Pakistan has not abandoned efforts to reduce subsidies and raise taxes to bring its budget deficit under control.
"We are not the only country to adjust fuel prices because of public opinion," Ambassador Husain Haqqani said in an interview in the Bloomberg Washington bureau yesterday. "There is no wavering in our commitment to

4.7% fiscal deficit to be achieved, IMF told

ISLAMABAD/KARACHI - Pakistan has assured the International Monetary Fund (IMF) that it would implement the policy measures for reforms during the nine-month extension in the standby arrangement programme in order to achieve the budget deficit target of 4.7 percent of the GDP.
This was revealed by the IMF in its report prepared by its staff after concluding the December 17 negotiations with Islamabad on the state of economic developments and policies in Pakistan.
A letter