ISLAMABAD: Pakistan Economic Survey 2020-21 will be presented on June 10 a day ahead of the federal budget, the Ministry of Finance said on Friday.
In the current financial year, the government has succeeded in achieving important economic targets; economic growth was 3.9 percent against the target of 2.1 percent, the survey points out.
The government, according to the survey, was also able to achieve targets in agriculture, industry, services, as per sources within the Ministry of Finance. However, the target to keep average inflation at 6.5 percent was not met, as the average rate was more than 8 percent in the preceding fiscal year.
The sources further said that the trade deficit and budget deficit were out of control, and had exceeded the target. Remittances and exports had increased, and there has been a record increase in foreign exchange reserves.
As per the survey, the per capita income increased by Rs16,895 to a total of Rs246,414.
The Pakistan Tehreek-e-Insaf (PTI) is all set to present its third budget on June 11. The total volume of the budget could be around Rs8,000 billion while the economic growth target has been set at 4.8 percent.
In addition to this, a total of Rs47bn has been allocated for an increase in government employees’ salaries. For pensions, an extra amount of Rs47.7bn is being allocated. It is estimated that a total of Rs527bn will be allocated in pensions. Furthermore, the government will not impose any new taxes on the salaried class.
The budget will spend Rs3,060bn on loans and interest. The budget deficit for the next financial year could be Rs2,915bn. A sum of Rs900bn will be spent on the annual development program.
A total of Rs530bn can be set aside for subsidies. Defense budget likely to be more than Rs1,400bn. The non-tax revenue could be Rs1420bn in the next budget.
Target to increase GDP volume to Rs52,000bn Inflation is expected to be 8 percent in the next financial year 2021-22.
Exports target for next fiscal year has been set at $26bn while imports could reach $54bn over next fiscal year.