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Pakistan's 2009-10 Budget - What to Looking for
Wednesday, June 3, 2009

Pakistan will announce its budget for the 2009/10 (July-June) fiscal year on June 13. Following are details of the budget that have been announced and media reports on its likely contents.

MACROECONOMICS

The International Monetary Fund (IMF) projects Pakistan's real gross domestic product growth to be 2.5 percent in the 2008/09 fiscal year and 3.5 percent in the 2009/10 fiscal year. This compares with an original target of 5.5 percent for 2008/09 and 5.8 percent achieved in 2007/08.
The Ministry of Finance would propose a government tax collection target of 1.405 trillion rupees for the 2009/10 fiscal year.
The target for this fiscal year was 1.25 trillion rupees and the government collected 849.2 billion rupees in the first nine months. The Federal Board of Revenue collected 989.096 billion from July to May.
The National Economic Council is likely to approve a growth target of 3.3 percent for the next financial year.
The newspaper also said the budget outlay for the next fiscal year would be 2.9 trillion rupees, while the revenue collection target will be 1.406 billion rupees.
The budget deficit for the next fiscal year will be 5 percent of GDP, and 343 billion rupees will be alloted for defence.
The IMF said on its website it had reached a preliminary understanding to increase the 2009/10 deficit target to 4.6 percent of GDP.
The National Economic Council was likely to approve 595 billion rupees for the Public Sector Development Programme for the 2009/10 fiscal year.

SUBSIDIES AND DUTIES

Adviser to the Prime Minister on Finance said on Sunday the government had decided to abolish subsidies on the gas, electricity and oil sectors.

TAXES

There would be no new taxes on industry and the rate of general sales tax would remain the same, Tarin said on Saturday.
The government is considering taxing capital gains on real estate after excluding initial buying cost, transfer documentation cost, provincial fees and the impact of inflation.

Labels: Pakistan Budget, Pakistan Economy