$31bn exports, $32bn remittances and Rs6trn revenue likely in full 2021-22: Govt expects 5pc growth in 2HFY22

[Shotgunner51]

Too much pessimism. Netherlands does a lot of re-export of goods made other European countries through its ports.

True, Hong Kong with 7M population recorded even more exports than Netherlands, same reason: Re-export.

 

[Pakistan Space Agency]

Pakistan Tehrik-e-Insaf's 4 step approach to dealing with economic problems of Pakistan so far.

Year-1 in office
1. Aap nay gabrana nahi.
2. Impose suffering on the masses.
3. Blame the previous Governments.
4. PTI needs to complete it's five-year term.

Year-2 in office
1. Aap nay gabrana nahi.
2. Continue imposing suffering on the masses.
3. Blame the previous Governments.
4. PTI needs two five-year terms in office.

Year-3 in office
1. Aap nay gabrana nahi.
2. Impose even more suffering on the masses.
3. Blame the previous Governments.
4. PTI needs at least three five-year terms in office.

Year-4 in office
1. Aap nay gabrana nahi.
2. Suffering is the new norm.
3. Blame the previous Governments.
4. PTI forever.

 

[CrazyZ]

I am not known for my pessimism here. We cannot say Turkey has a head start over us. We are a nation that is nearing 8 decades of being independent. For god-sake, we are being compared to our former compatriots who have had even less time than us to get going yet they have.

Pakistan's population is young which is why I am raising the point about educating/training the human factor to be more effective in the future. The opportunity that you talk of is not being exploited. PTI's policy will probably not see the light of the day when the next setup comes in. This has been the the situation for decades in Pakistan now.

Peak economic output is a misleading term. What if the economy grows by $10B at the peak? Is that enough? What is it relative to? I can make the same point, as an example, about India. They are a massively underperforming economy. They are a large but underperforming economy because the 1.2B population compared to China's massively underperforms. The Indian economy pales in comparison to the size, amount of exports and economic output of the Chinese economy.

I guess the key point I am trying to get across is that the quality of our Human Resource has to be improved for it to become competitive. We should double-down in the services and knowledge-based industries but both of these require good education.

Good points but Turkey has advantages Pakistan does not. They have been pushing development since Ottoman times. They developed their Hydro resources decades ago. Their proximity to Europe and large immigrant population in Germany help them in manufacturing and exports. Both Turkey and Morocco are becoming low cost car assembly hubs for Europe like Mexico is for the USA. Hopefully Pakistan can be come a low cost assembler for Chinese and East Asian consumers.

 

[Skywalker]

Pakistan Tehrik-e-Insaf's 4 step approach to dealing with economic problems of Pakistan so far.

Year-1 in office
1. Aap nay gabrana nahi.
2. Impose suffering on the masses.
3. Blame the previous Governments.
4. PTI needs to complete it's five-year term.

Year-2 in office
1. Aap nay gabrana nahi.
2. Continue imposing suffering on the masses.
3. Blame the previous Governments.
4. PTI needs two five-year terms in office.

Year-3 in office
1. Aap nay gabrana nahi.
2. Imposing even more suffering on the masses.
3. Blame the previous Governments.
4. PTI needs at least three five-year terms in office.

Year-4 in office
1. Aap nay gabrana nahi.
2. Suffering is the new norm.
3. Blame the previous Governments.
4. PTI forever.

patwari bhai aap baaz nahien aaogay.

 

[Flight of falcon]

Pakistan Tehrik-e-Insaf's 4 step approach to dealing with economic problems of Pakistan so far.

Year-1 in office
1. Aap nay gabrana nahi.
2. Impose suffering on the masses.
3. Blame the previous Governments.
4. PTI needs to complete it's five-year term.

Year-2 in office
1. Aap nay gabrana nahi.
2. Continue imposing suffering on the masses.
3. Blame the previous Governments.
4. PTI needs two five-year terms in office.

Year-3 in office
1. Aap nay gabrana nahi.
2. Imposing even more suffering on the masses.
3. Blame the previous Governments.
4. PTI needs at least three five-year terms in office.

Year-4 in office
1. Aap nay gabrana nahi.
2. Suffering is the new norm.
3. Blame the previous Governments.
4. PTI forever.

very informative , knowledgeable and contributing a lot to the discussion and information base. What else one can expect from a patwari.

 

[niaz]

The only way to get out of this quagmire is to increase our exports.....if it was upto me I would export everything I can find a market for especially minerals and value added finished products. In the absence of oil we will take forever to find substitute for this product .
Exports dont just bring money to us they create jobs which is the net most important thing for our economy.

This only half of it as it would only help in stabilizing the currency and provide local jobs.. We also need to increase the Inland Revenue and 'Import substitution' through locally produced good. Unless we general a fiscal surplus, there is nothing in kitty to pay for health, education and poverty reduction programs.

 

[Valar.]

Too much pessimism. Netherlands does a lot of re-export of goods made other European countries through its ports.

Pakistan is surrounded by landlocked countries in Central Asia. Heck, even China's eastern region bordering Pakistan can be termed as landlocked. How has Pakistan leveraged that so far? Till now, we have only one coastal city whose port was built by Brits. And condition of that port and city is below mediocre to say it politely.

 

[Flight of falcon]

This only half of it as it would only help in stabilizing the currency and provide local jobs.. We also need to increase the Inland Revenue and 'Import substitution' through locally produced good. Unless we general a fiscal surplus, there is nothing in kitty to pay for health, education and poverty reduction programs.

Here is already one big step in progress to cut unnecessary imports:

Mobile imports decline by 73pc as Pakistan begins manufacturing

ISLAMABAD: The import of cell phones has drastically decreased by 73 per cent during the first five months of the current fiscal year (5MFY22) after Pakistan started manufacturing mobile phones by its

profit.pakistantoday.com.pk

 

[xuxu1457]

$31bn exports, $32bn remittances and Rs6trn revenue likely in full 2021-22: Govt expects 5pc growth in 2HFY22

• 'Year 2021 - Resilient now ever!', the Finance Division said while issuing performance report of year 2021

Press Release Updated 01 Jan 2022
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ISLAMABAD: The Finance Division said it is expecting the growth to stay at five percent, exports $31 billion as well as remittances $32 billion and tax collection of Rs6 trillion besides reduction in trade deficit to reduce in second half of fiscal year 2022.
While issuing performance report of year 2021 on Friday, the Finance Division said that “Year 2021 - Resilient now ever!”
Sustainability: Pakistan boom-bust lifecycle appears cyclical than sustainable in past. This is reflected from past global commodity, political or economic shocks of 1998, 2009, & 2018, where economy got busted in very short interval of time
Unlike past, PTI government has managed to bring the sustainability to macroeconomics. Despite the most devastating health and Economic Shocks of century, ie, Covid-19 and recent multi decade high-price commodity shock, Pakistan economy has displayed the greatest resilience, which is unprecedented in the 74-year history of Pakistan.
Pakistan’s macroeconomic performance was widely accepted by all international macro-economic Financial Institutions (Including IMF, World Bank, ADB, Moody’s, S&P and Fitch etc.)
The government’s response to the pandemic has been widely acclaimed and recognised. According to The Economist, Pakistan has been ranked number 1 in the ‘Economists’ world normalcy index as the country has lifted most of its Covid-19 restrictions imposed to curb the virus spread.
Energy items: there’s no reduction in trade deficit intensity
The Economist normalcy index offers some evidence about how people are responding to restrictions in real-time. Pakistan is followed by Nigeria, Britain & Germany on the list which was updated on November 5, 2021
Pakistan has rolled out the largest social safety net in Pakistan’s history. According to World Bank report “global social protection responses to Covid-19” (May-2021) Pakistan ranks 4th globally in terms of the number of people covered and 3rd globally in terms of the percentage of population covered amongst those that covered over 100 million people; the World Bank has stated that only few countries have attained impressive six-digit levels in this regard. Pakistan’s Ehsaas Emergency Cash is one of them.
Response to Covid: It is important to note that, Pakistan’s response to COVID is most effective and timely than rest of the world, despite the fiscal constraints. The Vision of Prime Minister Imran Khan of implementing the smart lockdown is the most appropriate, which allowed the economy to grow. Followings initiatives provided by PTI government & SBP for the relief of the masses.
A fiscal relief package of Rs1,240bn to provide relief to neutralize the socioeconomic impact of Covid-19.
Overall Rs2,073bn relief package by SBP
Introduced Running Finance Facility for Hospitals and new Industrial Investments (TERF)
Introduced Rozgar Scheme to prevent layoffs by financing wages and salaries of employees
Provided relief for loan restructuring to borrowers
SBP reduced the policy rate by 625bps
Electricity bill concessions Rupees 46 billion and to SMEs Rupees 50.6 billion
Reduction in winter tariffs @11.97/kWh & @12.96/kWh in 2020 & 2021
Relief to 8mn families under Ehsaas program from 3.7mn before PTI government
Total release of Rs232 funds under Ehsaas program in 2021 from Rupees 102 billion in 2014
106bn under Mera Pakistan Mera Ghar, low-cost housing scheme loans have been approved by banks
Growth: Importantly, economy performed above expectations; GDP growth 4%, tax collection exceeded above targets, reserves improved, current account reported lowest since 2011
Target surpassed: Nov tax collection reaches Rs476bn mark
The key to note that this growth was achieved when rest of the world was encountering massive output contraction. India (-8%), UK (-10%), USA (-3.7%), Iran (-6.5%)
While Pakistan growth was broad-based. Against 2.1% target the growth came in at 3.94%.
Agriculture at 2.77%, Industry 3.57%, and Services at 4.43%
It is pertinent to note that record bumper crops witnessed in 2021 and the trend likely to continue next year as well
Rice came in at 8.4 million tons (last year 7.4mn tons), Maize 8.5 million tons (last year 7.9 million tons), wheat 27.5 million tons (last year 25.2 million tons), cotton 7.1 million bales (last year 9.1 million bales)
In 2022, sugarcane is expected at 87.7 million tons, wheat 28.9 million tons, and Rice 8.8 million tons.
Corporate Sector:
Interest rates remained lower for most of the year at 7%, which gave impetus to private sector
Aggregate profit after tax of KSE-100 in 3Q of 2021 is reported at Rupee 258 billion. The Highest in the last 10 years
The growth is broad based, corporate sector has posted the record profitability of Rupees 929 billion in FY21, up from Rupee 587 billion in 2018
Overall, 247% growth in companies’ incorporation (69,380 companies during July-2018 to Dec-21 reported, compared to 19,996 companies in the last three years of PMLN government)
44% of total 157,000 companies registered in Pakistan incorporated in the PTI’s 3 years
Sector wise, Real Estate (494%), IT Sector (194%), & Tourism (136%) growth witnessed from 2018-21
Record number of 19 IPO’s worth Rupee 85 billion executed in the last three year
External Sector: Remittances and exports are above than pre-Covid level of 2019-20. This in turn, current account deficit posted 10 years low of US$1.9bn in FY21
Exports of Goods came in at $25.6bn, up 14% higher in FY21.
First time in the last ten years, exports indicators are looking promising and the average monthly exports now targeting US$3bn from US$2bn as in PMLN time
Jul-Nov remittances post 10pc growth YoY
Exports of services are another area where significant improvements have been witnessed. Services exports in FY21 also increased by 10% to US$5.9bn
IT sector exports have doubled from PML-N time and expected to reach US$3.5bn to US$4bn, up 300% by the end of this government’s term
While remittances have piled up to record level to US$29.4bn, from US$23.1bn year earlier
The other hallmark of PTI government in its three years was the contraction of unnecessary imports and imports substitution. However, recent commodity price shock has jacked up the imports
As per our analysis, the 80-85% of import surge is due to price affect and 15-20% is quantitative in line with economic growth
Recent policy actions are already fetching results and import growth is expected to slow down. Moreover, given the better-than-expected agriculture crop outlook, the food import will be curtailed.
Fiscal: Federal taxes registered a record growth in FY21 and came almost Rupee one trillion more than 2018 level at Rupee 4,764 billion
Similarly, the growth in non-tax revenue has witnessed a massive increase to Rs1,630 billion
Overall, the deficit situation has improved to 7.1% of GDP from 8.1% in FY20
The primary balance is also contained to 1.4% from 1.8% of GDP year earlier
This year tax situation is even better than last year and Pakistan is likely to post Rs6 trillion tax target and more than Rupee 1,200 billion in a single year
So far due to excellent tax collection the primary balance has reported a surplus of Rupee 206 billion in the first four month of current fiscal year
Inflation: Following Budget FY22, global commodity prices surged to unprecedented levels, triggering pressure on currencies and pushing higher inflation around the world
•As per FAO world food prices climbed 27%, 10-year peak
•CRB Index climbed 37.67% year-over-year
•Bloomberg Commodity index increased 28.4% in a year
•USA CPI climbed by 6.8% in November, the fastest pace since 1982
•German Inflation at 5.2% in November, highest rate since June 1992
•UK 10-Year high inflation witnessed at 5.1%
•China factory inflation is at 26 years high at 12.9%
•India WPI hits record high at 14.23%
•CPI in Pakistan cloaked in at 11.5% in November 2021, while it is interesting to note that recently the price of food is witnessing a significant decline, onions down 25% YoY, Pulse Moong 25%, Tomatoes 17%, Eggs 10%, Chicken 10% and Potatoes 8% while the prices of wheat flour, rice and sugar depicted a stability
Ehsaas Program: Under Ehsaas Emergency Cash Program, the government has disbursed Rs 179.3 billion to 14.8 million beneficiaries to provide immediate cash relief of Rs 12,000 whose livelihood has been severely affected by the pandemic
Other progress: The government has cleared the outstanding power sector dues in tune of more than Rupee 220bn and refunds of more than Rupee 250 billion
Power supply remained uninterrupted, resultantly exports and industrial output growth remained in double digit
After very long-time rural economy has strengthened with record growth in crop yields and prices
The country is also witnessing the construction boom led by construction package announced by Prime Minister
More than Rupee 1,000 billion worth projects were approved in one year
Construction of Dams initiated which will double the water storage from current 13 million acre feet and addition of 10,000 mega watts of electricity
The country has scored overall well on health front, more than 150mn vaccines have been administered. Close to US$2bn spent on vaccines without provincial contribution
Highest number of social and economic programs launched e.g Kamyab Pakistan, Sehat card, Ehsaas Rashan, KamyabJawan, Mera Pakistan Mera Ghar, Kissan card, etc
Introduction of winter relief tariffs to industries, commercial and households
Introduced the Textile, Auto, and SME Policies
Focus on non-conventional products and market exports for diversification especially on IT sector related incentives
Implemented the toughest FATF action plan in limited period
Better administrative controls and productivity growth brought prices of essential food items down e.g. Wheat flour, Sugar, onion, potatoes, tomatoes, and pulses
Outlook: Going forward, we expect the growth to stay at 5%, exports $31bn, remittances $32bn, taxes Rupee 6,000bn, trade deficit to reduce in 2HFY22
Recent pressures on Current account are due to commodity shock but risks are receding due to timely policy actions.
Copyright Business Recorder, 2022

$31bn exports, $32bn remittances and Rs6trn revenue likely in full 2021-22: Govt expects 5pc growth in 2HFY22

* 'Year 2021 - Resilient now ever!', the Finance Division said while issuing performance report of year 2021

www.brecorder.com

China factory inflation is at 26 years high at 12.9%
other countries are all cpi
but The consumer price index (CPI) only rose 2.3% year-on-year, the NBS said in a separate statement, slower than expectations for a 2.5% rise but picking up from 1.5% in October.

 

[War Thunder]

Are these people serious? $31B with a population of 210M people is a stretch goal for these buffoons?? The famous Urdu idiom "chullu bhar paani mey doob maro" (we should die of shame) comes to mind. One of the most horrendous examples of under-utilized manpower in the history of mankind! Turkey, with 84M people, has exports worth $225B this past year!! Let's take stock of that. It is criminal that these bastards who have ruled Pakistan have left an army of uneducated, impoverished masses that do nothing but procreate.

The one area where this horde of people could be leveraged is services possibly. Our useless governments, including IK's PTI, cannot even get the services industry right by training and putting this massive population to work.

Its not the politics but the useless nature of policies and wastage that bothers ones mind about the ongoings in Pakistan.

"uneducated, impoverished masses that do nothing but procreate"

Yup, you exhibited all of those traits pretty successfully with your use of language.

 

[CrazyZ]

Pakistan is surrounded by landlocked countries in Central Asia. Heck, even China's eastern region bordering Pakistan can be termed as landlocked. How has Pakistan leveraged that so far? Till now, we have only one coastal city whose port was built by Brits. And condition of that port and city is below mediocre to say it politely.

Pakistan's coast is parched with little water resources to support large cities any distance from the Indus. Condition of our port city and stunted economic development is what happens when PPP is in charge......disfunctional and uncompetitive based on 1950's leftish British economics.

 

[Zibago]

Last year, total Pakistani exports were $31.3 billion and this fiscal year they're expected to remain around the same.

Why is this stall in exports being propagandised as a positive news?

Apna diya howa link parh lo us mein hi 25 billion likha hy

Trade deficit doubles in July-Dec as imports soar

Exports jump 25pc year-on-year during the half-yearly period.

www.dawn.com

Is time oil prices ka shock tha

 

[Zibago]

Pakistan Tehrik-e-Insaf's 4 step approach to dealing with economic problems of Pakistan so far.

Year-1 in office
1. Aap nay gabrana nahi.
2. Impose suffering on the masses.
3. Blame the previous Governments.
4. PTI needs to complete it's five-year term.

Year-2 in office
1. Aap nay gabrana nahi.
2. Continue imposing suffering on the masses.
3. Blame the previous Governments.
4. PTI needs two five-year terms in office.

Year-3 in office
1. Aap nay gabrana nahi.
2. Imposing even more suffering on the masses.
3. Blame the previous Governments.
4. PTI needs at least three five-year terms in office.

Year-4 in office
1. Aap nay gabrana nahi.
2. Suffering is the new norm.
3. Blame the previous Governments.
4. PTI forever.

Jati umran da halali howey tey bongi na marey

 

[Zibago]

FDI is the key. The reason Remittances are growing is because other economies around the world are growing, to the point that remittances are higher than exports. Pakistan needs policies that attract enough FDI (3-5% of GDP every year) so the Pakistani economy itself grows domestically and for the export market. There are many inefficiencies in the Pakistani economy that I think are being addressed but not as comprehensively as they need to be to speed up grow as much as possible.

The entire world went through a brutal recession pata nahi kaha growth howi

 

[alee92nawaz]

$31bn exports, $32bn remittances and Rs6trn revenue likely in full 2021-22: Govt expects 5pc growth in 2HFY22

• 'Year 2021 - Resilient now ever!', the Finance Division said while issuing performance report of year 2021

Press Release Updated 01 Jan 2022

Facebook

Twitter

Whatsapp

Comments

ISLAMABAD: The Finance Division said it is expecting the growth to stay at five percent, exports $31 billion as well as remittances $32 billion and tax collection of Rs6 trillion besides reduction in trade deficit to reduce in second half of fiscal year 2022.
While issuing performance report of year 2021 on Friday, the Finance Division said that “Year 2021 - Resilient now ever!”
Sustainability: Pakistan boom-bust lifecycle appears cyclical than sustainable in past. This is reflected from past global commodity, political or economic shocks of 1998, 2009, & 2018, where economy got busted in very short interval of time
Unlike past, PTI government has managed to bring the sustainability to macroeconomics. Despite the most devastating health and Economic Shocks of century, ie, Covid-19 and recent multi decade high-price commodity shock, Pakistan economy has displayed the greatest resilience, which is unprecedented in the 74-year history of Pakistan.
Pakistan’s macroeconomic performance was widely accepted by all international macro-economic Financial Institutions (Including IMF, World Bank, ADB, Moody’s, S&P and Fitch etc.)
The government’s response to the pandemic has been widely acclaimed and recognised. According to The Economist, Pakistan has been ranked number 1 in the ‘Economists’ world normalcy index as the country has lifted most of its Covid-19 restrictions imposed to curb the virus spread.
Energy items: there’s no reduction in trade deficit intensity
The Economist normalcy index offers some evidence about how people are responding to restrictions in real-time. Pakistan is followed by Nigeria, Britain & Germany on the list which was updated on November 5, 2021
Pakistan has rolled out the largest social safety net in Pakistan’s history. According to World Bank report “global social protection responses to Covid-19” (May-2021) Pakistan ranks 4th globally in terms of the number of people covered and 3rd globally in terms of the percentage of population covered amongst those that covered over 100 million people; the World Bank has stated that only few countries have attained impressive six-digit levels in this regard. Pakistan’s Ehsaas Emergency Cash is one of them.
Response to Covid: It is important to note that, Pakistan’s response to COVID is most effective and timely than rest of the world, despite the fiscal constraints. The Vision of Prime Minister Imran Khan of implementing the smart lockdown is the most appropriate, which allowed the economy to grow. Followings initiatives provided by PTI government & SBP for the relief of the masses.
A fiscal relief package of Rs1,240bn to provide relief to neutralize the socioeconomic impact of Covid-19.
Overall Rs2,073bn relief package by SBP
Introduced Running Finance Facility for Hospitals and new Industrial Investments (TERF)
Introduced Rozgar Scheme to prevent layoffs by financing wages and salaries of employees
Provided relief for loan restructuring to borrowers
SBP reduced the policy rate by 625bps
Electricity bill concessions Rupees 46 billion and to SMEs Rupees 50.6 billion
Reduction in winter tariffs @11.97/kWh & @12.96/kWh in 2020 & 2021
Relief to 8mn families under Ehsaas program from 3.7mn before PTI government
Total release of Rs232 funds under Ehsaas program in 2021 from Rupees 102 billion in 2014
106bn under Mera Pakistan Mera Ghar, low-cost housing scheme loans have been approved by banks
Growth: Importantly, economy performed above expectations; GDP growth 4%, tax collection exceeded above targets, reserves improved, current account reported lowest since 2011
Target surpassed: Nov tax collection reaches Rs476bn mark
The key to note that this growth was achieved when rest of the world was encountering massive output contraction. India (-8%), UK (-10%), USA (-3.7%), Iran (-6.5%)
While Pakistan growth was broad-based. Against 2.1% target the growth came in at 3.94%.
Agriculture at 2.77%, Industry 3.57%, and Services at 4.43%
It is pertinent to note that record bumper crops witnessed in 2021 and the trend likely to continue next year as well
Rice came in at 8.4 million tons (last year 7.4mn tons), Maize 8.5 million tons (last year 7.9 million tons), wheat 27.5 million tons (last year 25.2 million tons), cotton 7.1 million bales (last year 9.1 million bales)
In 2022, sugarcane is expected at 87.7 million tons, wheat 28.9 million tons, and Rice 8.8 million tons.
Corporate Sector:
Interest rates remained lower for most of the year at 7%, which gave impetus to private sector
Aggregate profit after tax of KSE-100 in 3Q of 2021 is reported at Rupee 258 billion. The Highest in the last 10 years
The growth is broad based, corporate sector has posted the record profitability of Rupees 929 billion in FY21, up from Rupee 587 billion in 2018
Overall, 247% growth in companies’ incorporation (69,380 companies during July-2018 to Dec-21 reported, compared to 19,996 companies in the last three years of PMLN government)
44% of total 157,000 companies registered in Pakistan incorporated in the PTI’s 3 years
Sector wise, Real Estate (494%), IT Sector (194%), & Tourism (136%) growth witnessed from 2018-21
Record number of 19 IPO’s worth Rupee 85 billion executed in the last three year
External Sector: Remittances and exports are above than pre-Covid level of 2019-20. This in turn, current account deficit posted 10 years low of US$1.9bn in FY21
Exports of Goods came in at $25.6bn, up 14% higher in FY21.
First time in the last ten years, exports indicators are looking promising and the average monthly exports now targeting US$3bn from US$2bn as in PMLN time
Jul-Nov remittances post 10pc growth YoY
Exports of services are another area where significant improvements have been witnessed. Services exports in FY21 also increased by 10% to US$5.9bn
IT sector exports have doubled from PML-N time and expected to reach US$3.5bn to US$4bn, up 300% by the end of this government’s term
While remittances have piled up to record level to US$29.4bn, from US$23.1bn year earlier
The other hallmark of PTI government in its three years was the contraction of unnecessary imports and imports substitution. However, recent commodity price shock has jacked up the imports
As per our analysis, the 80-85% of import surge is due to price affect and 15-20% is quantitative in line with economic growth
Recent policy actions are already fetching results and import growth is expected to slow down. Moreover, given the better-than-expected agriculture crop outlook, the food import will be curtailed.
Fiscal: Federal taxes registered a record growth in FY21 and came almost Rupee one trillion more than 2018 level at Rupee 4,764 billion
Similarly, the growth in non-tax revenue has witnessed a massive increase to Rs1,630 billion
Overall, the deficit situation has improved to 7.1% of GDP from 8.1% in FY20
The primary balance is also contained to 1.4% from 1.8% of GDP year earlier
This year tax situation is even better than last year and Pakistan is likely to post Rs6 trillion tax target and more than Rupee 1,200 billion in a single year
So far due to excellent tax collection the primary balance has reported a surplus of Rupee 206 billion in the first four month of current fiscal year
Inflation: Following Budget FY22, global commodity prices surged to unprecedented levels, triggering pressure on currencies and pushing higher inflation around the world
•As per FAO world food prices climbed 27%, 10-year peak
•CRB Index climbed 37.67% year-over-year
•Bloomberg Commodity index increased 28.4% in a year
•USA CPI climbed by 6.8% in November, the fastest pace since 1982
•German Inflation at 5.2% in November, highest rate since June 1992
•UK 10-Year high inflation witnessed at 5.1%
•China factory inflation is at 26 years high at 12.9%
•India WPI hits record high at 14.23%
•CPI in Pakistan cloaked in at 11.5% in November 2021, while it is interesting to note that recently the price of food is witnessing a significant decline, onions down 25% YoY, Pulse Moong 25%, Tomatoes 17%, Eggs 10%, Chicken 10% and Potatoes 8% while the prices of wheat flour, rice and sugar depicted a stability
Ehsaas Program: Under Ehsaas Emergency Cash Program, the government has disbursed Rs 179.3 billion to 14.8 million beneficiaries to provide immediate cash relief of Rs 12,000 whose livelihood has been severely affected by the pandemic
Other progress: The government has cleared the outstanding power sector dues in tune of more than Rupee 220bn and refunds of more than Rupee 250 billion
Power supply remained uninterrupted, resultantly exports and industrial output growth remained in double digit
After very long-time rural economy has strengthened with record growth in crop yields and prices
The country is also witnessing the construction boom led by construction package announced by Prime Minister
More than Rupee 1,000 billion worth projects were approved in one year
Construction of Dams initiated which will double the water storage from current 13 million acre feet and addition of 10,000 mega watts of electricity
The country has scored overall well on health front, more than 150mn vaccines have been administered. Close to US$2bn spent on vaccines without provincial contribution
Highest number of social and economic programs launched e.g Kamyab Pakistan, Sehat card, Ehsaas Rashan, KamyabJawan, Mera Pakistan Mera Ghar, Kissan card, etc
Introduction of winter relief tariffs to industries, commercial and households
Introduced the Textile, Auto, and SME Policies
Focus on non-conventional products and market exports for diversification especially on IT sector related incentives
Implemented the toughest FATF action plan in limited period
Better administrative controls and productivity growth brought prices of essential food items down e.g. Wheat flour, Sugar, onion, potatoes, tomatoes, and pulses
Outlook: Going forward, we expect the growth to stay at 5%, exports $31bn, remittances $32bn, taxes Rupee 6,000bn, trade deficit to reduce in 2HFY22
Recent pressures on Current account are due to commodity shock but risks are receding due to timely policy actions.
Copyright Business Recorder, 2022

$31bn exports, $32bn remittances and Rs6trn revenue likely in full 2021-22: Govt expects 5pc growth in 2HFY22

* 'Year 2021 - Resilient now ever!', the Finance Division said while issuing performance report of year 2021

www.brecorder.com

I wonder when the common man will get anything out of it. Squeezing poor to middle class for each and every penny.