The Finance Minister Shaukat Tarin presented the federal budget 2021-22 in the National Assembly amidst ruckus by the opposition.
Shaukat Tarin commenced his budget speech by stating that the biggest challenge for the PTI government was to bring the national economy back on the path of recovery.
The Finance Minister said that Pakistan’s economy has witnessed a V-shaped recovery after contracting by 0.47% in FY 2020-2021, The provisional GDP growth rate for FY 2021 is estimated to be 3.94% against the targeted growth of 2.1% through the policy initiatives undertaken during FY 2020-2021.
The nominal GDP for FY 2021 is estimated to hike from Rs45,567 billion to Rs47,709 billion, whereas, the Economic Stimulus of Rs1.24 trillion announced in March 2020 has been extended for the FY 2021 and an amount of Rs155 billion has been released to mitigate the socio-economic impacts of coronavirus pandemic.
During July-April FY 2020-21 exports were increased by 6.5% to $21.0 billion ($19.7 billion last year), On a YoY basis, exports increased by 61.3% to $2.3 billion in April 2021 ($ 1.4 billion in April 2020).
Foreign remittances increases significantly by 29.0% to $24.2 billion and crossed the target of $21.5 billion as compared to $18.8 bn during Jul-Apr, FY 2020-21 during the same period last year.
The inflation based on Consumer Price Index (CPI) during Jul-Apr, FY 2020-21 is down to 8.6% as against 11.2% during the same period last year.
FBR tax collection grew by 14.4% to Rs.3,780 billion during Jul-Apr FY 2020-2021 against Rs.3,303 billion last year, A refund of Rs.253 billion was issued by FBR to the business community during July April, FY 2020-21, which are 66.5% higher than the previous year’s Rs.151.8 billion issued during the same period last year.
Pakistan has entered the international capital market after a gap of over 3 years by successfully raising USD 2.5 billion.
World Bank recognized Ehsaas Emergency Cash Programme as amongst the top 4 social protection interventions in the world in terms of the numbers of people covered.
The IMF and Pakistan have resumed the $6 billion Extended Fund Facility and completed the 2nd to the 5th review under the program, The IMF has lauded that the government policies have been crucial in supporting the economy and saving lives and livelihoods in the coronavirus pandemic.
Inflows of foreign exchange through the Roshan Digital Account (RDA) crossed the $1 billion mark in a short span of time after the launch of the scheme.
Moody’s rating agency upgraded Pakistan’s outlook to ‘Stable’ from ‘under review for downgrade’ (in August, 2020). Fitch affirmed Pakistan’s rating at B- with stable outlook.
Salient Features of Budget 2021-2022:
Your email address will not be published. Required fields are marked *