Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22

Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22

ISLAMABAD: Pakistan’s fiscal deficit during the first half (July – December) of 2021/2022 has contracted at 2.1 per cent as compared with 2.5 per cent in the same half of the last fiscal year, the finance ministry said on Wednesday.

The reduction in deficit mainly contraction in expenditure during the half.

READ MORE: Pakistan, China discuss bilateral economic, trade ties

The revenue to the GDP ratio fell to 6.2 per cent during the first half of the current fiscal year as compared with 7.4 per cent in the same half of the last fiscal year.

The expenditure to the GDP ratio also declined to 8.2 per cent during the first half of the current fiscal year as compared with 9.9 per cent in the same half of the last fiscal year.

READ MORE: PM Imran invites Chinese companies to invest in Pakistan

The GDP size during the first half of the current fiscal year has been measured at Rs63.978 trillion as compared with Rs45.567 trillion in the same half of the last fiscal year.

According to the fiscal operation for first half (July – December) 2021/2022 released by the finance ministry, the total revenue was recorded at Rs3.95 trillion, out of which, the tax revenue was at Rs3.19 trillion and non-tax revenue was Rs764.93 billion.

READ MORE: Prime Minister Imran kicks off visit to China

Total expenditure during the first half of the current fiscal year has been recorded at Rs5.32 trillion. The current expenditure has been recorded at Rs4.67 trillion, out of which Rs520 billion was spend on defence. An amount of Rs571 billion was spent for development expenditure and net lending.

To meet the budget deficit of Rs1.372 trillion, the government borrowed Rs 1.025 trillion from external sources and remaining Rs346 billion arranged from domestic sources.

READ MORE: PM Imran terms exports, tax collection must for growth

Leave a Reply

You have to agree to the comment policy.