BAFL 52.51 Increased By ▲ 2.48 (4.96%)
BIPL 22.80 Increased By ▲ 0.39 (1.74%)
BOP 5.68 Increased By ▲ 0.26 (4.8%)
CNERGY 5.09 Increased By ▲ 0.04 (0.79%)
DFML 19.35 Increased By ▲ 0.17 (0.89%)
DGKC 80.80 Increased By ▲ 0.65 (0.81%)
FABL 33.10 Increased By ▲ 0.25 (0.76%)
FCCL 20.23 Decreased By ▼ -0.02 (-0.1%)
FFL 10.57 Increased By ▲ 0.92 (9.53%)
GGL 13.62 Increased By ▲ 0.02 (0.15%)
HBL 130.17 Increased By ▲ 8.83 (7.28%)
HUBC 122.62 Increased By ▲ 0.12 (0.1%)
HUMNL 8.05 Increased By ▲ 0.05 (0.63%)
KEL 4.45 Increased By ▲ 0.48 (12.09%)
LOTCHEM 27.92 Decreased By ▼ -0.16 (-0.57%)
MLCF 42.70 Increased By ▲ 0.50 (1.18%)
OGDC 125.61 Increased By ▲ 4.28 (3.53%)
PAEL 21.35 Increased By ▲ 1.12 (5.54%)
PIBTL 6.12 Increased By ▲ 0.32 (5.52%)
PIOC 118.00 Increased By ▲ 2.10 (1.81%)
PPL 113.85 Increased By ▲ 3.10 (2.8%)
PRL 31.80 Increased By ▲ 2.22 (7.51%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 69.40 Increased By ▲ 0.37 (0.54%)
SSGC 13.72 Increased By ▲ 0.02 (0.15%)
TELE 9.24 Increased By ▲ 0.49 (5.6%)
TPLP 14.75 Increased By ▲ 0.08 (0.55%)
TRG 92.85 Increased By ▲ 1.55 (1.7%)
UNITY 27.50 Increased By ▲ 0.25 (0.92%)
WTL 1.66 Increased By ▲ 0.03 (1.84%)
BR100 6,815 Increased By 167.1 (2.51%)
BR30 24,245 Increased By 677 (2.87%)
KSE100 66,224 Increased By 1505.6 (2.33%)
KSE30 22,123 Increased By 529.1 (2.45%)

ISLAMABAD: The Finance Division has acknowledged that a manageable current account deficit and its guaranteed financing by healthy financial inflows are required.

The Finance Division, in its monthly economic update and outlook for the November 2022 noted, during the first quarter of the fiscal year 2023, acceleration in total expenditures outpaced the growth in revenues. The additional requirement of substantial expenditures on flood-related activities has brought various challenges to fiscal sustainability.

Furthermore, in an already constrained fiscal position, the government is compelled to allocate additional funds to maintain the law and order situation due to the ‘long march’ in the country.

All these would put pressure on total expenditures. On the revenue side, although the FBR tax collection has maintained its growth trajectory above 16 percent during the first four months, the slowdown in economic activity due to floods and political activity may have some repercussions on tax collection.

It further stated that the targets fixed for current Rabi 2022-23 crops seem to be challenging due to delayed sowing in the flood-affected areas.

However, timely rains may positively impact production in the agriculture sector. Furthermore, the Kissan Package will reduce the burden on farmers and revive the agriculture sector. Delayed sowing of wheat crop in Sindh is making it challenging to achieve the targets set for Rabi-2022-23 season. However, the supporting measures by both federal and provincial governments may reverse the negative effects on the agriculture sector.

Industrial activity, measured by the LSM index is the sector that is most exposed to the developments in international markets as LSM remained subdued in September 2022. Pressure on the automobile sector also remain sustained throughout the first four months of the fiscal year 2023 as car production and sale decreased by 38.5 and 47.0 percent, respectively, trucks and buses production and sale decreased by 25.1 and 39.9 percent and tractor production and sale decreased by 36.7 and 46.7 percent, respectively during the first quarter of the ongoing fiscal year.

During the first quarter of the current fiscal year, total revenue increased by 12 percent to Rs2,017 billion against Rs1,809 billion in the same period last year. Within revenues, total tax collection grew by 16 percent while receipts from non-tax fell by 15 percent. Similarly, total expenditures grew by 26 percent to reach Rs2,826 billion in Q1FY23 against Rs2,247 billion in the same period of last year. Consequently, the fiscal deficit increased to 1.0 percent of GDP in Q1 FY2023 against 0.7 percent recorded in the same period of last year. The primary balance posted a surplus of Rs.145.3 billion in Q1FY23 against a surplus of Rs184.2 billion in the comparable period of last year.

The remittances have decreased by 8.6 to $9.9 billion during July-October 2022 from $10.8 billion for the same period a year before and FDI by 52.1 percent to $348.3 million from $726.6 million. Exports have increased by 2.6 percent to $9.8 billion during July-October 2022 from $9.6 billion for the same period a year ago and imports decreased by 11.6 percent.

Copyright Business Recorder, 2022


Comments are closed.

Monthly economic update, outlook: Manageable CAD, its guaranteed financing required: FD

No signs of stopping: KSE-100 settles above 66k, gains over 1,500 points

Palestinian Authority working with US on postwar plan for Gaza

Inter-bank: rupee sees 9th consecutive gain against US dollar

PML-N demands not power, but accountability: Nawaz Sharif

Open market: rupee edges higher against US dollar

Five terrorists killed in Tank IBO: ISPR

Former finance minister Shaukat Tarin quits PTI, politics

Imran’s statement on Afghan refugees an attempt to gain ‘sympathy of Afghan govt’: info minister

Pakistan issues visa to Indian Hindu pilgrims for visit to Sindh’s Shadani Darbar

ECP issues notice to PTI regarding petitions challenging intra-party polls