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Upcoming budget: Authorities share revised fiscal framework with IMF


National
May 26, 2021
ISLAMABAD: Pakistani authorities have shared a revised fiscal framework with the IMF for the upcoming budget and proposed to bridge Rs300 billion shortfall on account of petroleum levy through jacking up the FBR’s target to Rs5.8 trillion.
There is another worrying development occurring on the economic horizon for the country as imports have surged substantially and stood at $5 billion for April 2021. It will result into turning the current account surplus into deficit and the government is projecting $4 to $5 billion current account deficit or 1.3 to 1.5 percent of GDP in the next fiscal year. The higher imports are a good omen for the FBR’s revenues as 40 percent collection is done at the import stage. However, it will put pressure on the external account of the economy. The total size of the federal budget will be over Rs8 trillion for the coming fiscal year. Pakistan and the IMF high-ups kick-started virtual deliberations from this week w ....

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