ANL 11.28 Increased By ▲ 1.00 (9.73%)
ASC 9.50 Increased By ▲ 0.41 (4.51%)
ASL 11.24 Increased By ▲ 0.25 (2.27%)
AVN 78.01 Increased By ▲ 0.41 (0.53%)
BOP 5.51 Increased By ▲ 0.11 (2.04%)
CNERGY 5.41 Increased By ▲ 0.08 (1.5%)
FFL 6.76 Increased By ▲ 0.16 (2.42%)
FNEL 5.91 Increased By ▲ 0.06 (1.03%)
GGGL 11.30 Increased By ▲ 0.21 (1.89%)
GGL 16.78 Increased By ▲ 0.25 (1.51%)
GTECH 8.99 Increased By ▲ 0.58 (6.9%)
HUMNL 7.20 Increased By ▲ 0.06 (0.84%)
KEL 2.96 Decreased By ▼ -0.04 (-1.33%)
KOSM 3.46 Increased By ▲ 0.25 (7.79%)
MLCF 27.15 Increased By ▲ 0.15 (0.56%)
PACE 3.10 Increased By ▲ 0.10 (3.33%)
PIBTL 6.11 Increased By ▲ 0.17 (2.86%)
PRL 18.06 Increased By ▲ 0.16 (0.89%)
PTC 7.08 Increased By ▲ 0.11 (1.58%)
SILK 1.19 Increased By ▲ 0.02 (1.71%)
SNGP 34.75 Increased By ▲ 0.47 (1.37%)
TELE 10.94 Increased By ▲ 0.13 (1.2%)
TPL 9.40 Increased By ▲ 0.32 (3.52%)
TPLP 20.49 Increased By ▲ 0.34 (1.69%)
TREET 29.40 Increased By ▲ 0.25 (0.86%)
TRG 77.50 Increased By ▲ 0.39 (0.51%)
UNITY 20.36 Increased By ▲ 0.31 (1.55%)
WAVES 12.80 No Change ▼ 0.00 (0%)
WTL 1.37 Increased By ▲ 0.04 (3.01%)
YOUW 5.51 Increased By ▲ 0.52 (10.42%)
BR100 4,137 Increased By 36.3 (0.88%)
BR30 15,237 Increased By 211.2 (1.41%)
KSE100 41,734 Increased By 192.7 (0.46%)
KSE30 15,891 Increased By 85.6 (0.54%)
Business & Finance

Budget deficit to balloon to Rs5.6tr in FY22, says Miftah as he slams PTI's economic policies

  • In press conference on Tuesday, PML-N leader says adding amount of supplementary grant would take deficit's total to Rs6.4tr
Updated 12 Apr, 2022

Pakistan Muslim League-Nawaz (PML-N) leader Miftah Ismail, also a former finance minister, on Tuesday informed Pakistan's budget deficit will hit Rs5,600 billion at the end of the ongoing fiscal year, a record high level, as he slammed economic policies of the ousted government of Pakistan Tehreek-e-Insaf (PTI).

Addressing a press conference at his residence, Miftah – a key member of the PML-N whose president, Shehbaz Sharif, was elected the country's prime minister on Monday after the ouster of Imran Khan – said the previous government informed us that the country would face a deficit of around Rs4,000 billion.

Third successive gain: Rupee's appreciation run against US dollar continues

"However, this deficit will balloon to Rs5,600 billion, which is by far the highest deficit in Pakistan’s history," said Miftah, who served as finance minister during 2018.

“If we add the Rs800 billion in supplementary grants, the deficit ends up at Rs6,400 billion,” he said, adding that out of Rs800 billion, Rs220 billion alone needs to be given to Sui Northern Gas Pipelines Limited (SNGPL) while another Rs80 billion needs to be disbursed to Gencos to keep them afloat.

Tackling economic issues is one of the main, and most urgent, responsibility of the incoming government, as the South Asian country’s economy faces a number of issues on multiple fronts including a rising inflation rate and depleting foreign exchange reserves.

PM Shehbaz seeks proposals on economy from experts on emergency basis

Terming the Rs373-billion relief package announced by then Prime Minister Imran Khan as a “landmine left for the newly formed government of Shehbaz Sharif”, Miftah said that PTI officials wrongly said that the package could be financed by the government.

“The International Monetary Fund (IMF) has not agreed on the said package, and we would have to renew negotiations with the international lender,” said Miftah.

Rejecting claims, Miftah said that the previous government never achieved a primary surplus.

The PML-N leader added that Pakistan’s trade deficit is expected to hit $45 billion this fiscal year, which is a record.

“Pakistan imports are going to hit a record $75 billion, whereas the country’s exports will reach $30 billion,” he said.

Miftah Ismail says KSE-100 Index 'going up at Shehbaz speed'

Miftah said that due to the rising current account deficit, foreign exchange reserves are declining. “Last month alone, forex reserves declined by $5 billion, which is the largest single decrease in foreign exchange reserves in the history of Pakistan,” said Miftah.

“Our government's top priority is to stabilise and increase the foreign exchange reserves,” he said.

Miftah said that in the coming fiscal year Pakistan needs to make payments of $30 billion, for which it is important to take the IMF on board.

Praising announcements made by Prime Minister Shehbaz, Miftah had earlier said that his government increased the pension of pensioners by 10% immediately, and also raised the minimum wage to Rs25,000.

Miftah added that markets reacted positively to Shehbaz Sharif's ascent to the PM House, as the Pakistan Stock Exchange (PSX) posted massive gains, whereas the dollar, which was trading at 190 just days ago, has gone down to 182 against the rupee.

Comments

Comments are closed.

Syed Arif Hussain Zahidi Apr 12, 2022 07:17pm
Unfortunately the new Government's always had to face this problem.
thumb_up Recommended (0)
MMS Apr 13, 2022 04:12am
look who is talking of land mines, plus dollar didn't came down because it is PML-N government. It came down because army did not stepped in and ramp up the democracy.
thumb_up Recommended (0)