Finance Ministry to Finalize Budget Targets for FY22-23

The Finance Ministry is finalizing budget targets for the next fiscal year to present in the National Assembly on 10 June 2022. The targets of macro indicators will be approved in the meeting of the National Economic Council (NEC) next week.

Sources told ProPakistani that the Finance Ministry is finalizing budget targets to present in the NEC meeting which will be held next week under the chairmanship of the Prime Minister in Islamabad.

Sources also revealed that the Finance Ministry is presenting the budget on 10 June in National Assembly.

The Public Sector Development Program (PSDP) target is likely to be set at Rs. 700 billion in the meeting of the Annual Plan Coordination Committee (APCC) which will be held on 4 June 2022 under the chairmanship of Deputy Chairman Planning Commission in Islamabad.

The APCC will propose a GDP growth target to the NEC for final approval that will be held under the chairmanship of Prime Minister Shehbaz Sharif. The PM is to give final approval of the target of macroeconomic indicators including GDP growth and PSDP allocation for the upcoming fiscal year.

The sources said that the officials are considering setting the GDP growth rate around 5 percent for the next fiscal year. The GDP growth rate may slow down if Pakistan accepts tough conditions of the International Monetary Fund (IMF) for the revival of the stalled loan program.

The high-interest rate on bank borrowing? slowdown in imports? reduction in subsidies and government expenditure may affect the GDP growth rate for the next fiscal year.

The sources said that the authorities are expecting that the country may get $32 billion from the export of goods during the next fiscal year. The imports of the country may narrow down to $67 billion for the next fiscal year from more than $75 billion in the outgoing fiscal year.

The budget makers are also expecting that the country’s remittances from overseas workers may also blink at $30 billion during the fiscal year 2022-23. The current account deficit will remain at $13 billion? according to the initial estimates.

The Finance Ministry also set the targets of Interest and debt payments that would be around Rs. 3523 billion.

The Federal Board of Revenue (FBR) is also considering different tax proposals to set the tax collection target that will likely be set at Rs. 7.2 trillion for the next fiscal year. The Defense budget spending will be around Rs. 1586 billion.

Source: Pro Pakistani