Mini budget discussion

[pkuser2k12]

https://twitter.com/x/status/1088112099874754561

https://twitter.com/x/status/1088124260869177347

 

[ziaulislam]

https://www.facebook.com/video.php?v=10161835577550393

 

[ziaulislam]

Concern is where is the govt going to bring the fiscal revenues to cover this gap..deficit is already at 10%(4% ideal this is about 1800 billion rupees or half of your tax collections )

Govt is covering some gap by decreasing development budget, devaluation and increase electricity prices..but still its a you steep gap

The whole point of view is to mobilize investment and that should cover the deficit by it self which is reasonable given an astonishing low level of investment given astonishing high level of tax (39% was decreased to 20%)

Co operate taxes are still too high..govt nees to cut it by 5% ASAP..but decided to cut it by 1% for now

 

[pkuser2k12]

https://twitter.com/x/status/1088110328888598528

https://twitter.com/x/status/1088134638470643712

 

[Syed1.]

All the media praising the budget as well... how will champo usmani earn his khota biryani now? @Champion_Usmani

 

[Hakikat ve Hikmet]

Looks like the Team IK is full of confidence vis-à-vis finances/economy etc.!!! They're not in the belt-tightening mode/mood!!! Good to see them in the offensive for he who fears being conquered is sure of defeat....

Another point about Pak's humongous parallel economy (non-filers but buys cars/houses etc.), which seems to be existing for real!!! Pak government might be trying to leverage it as much as possible...

 

[Ocelot]

Arif Habib clearly looks exhilerated. Stock Market will skyrocket in the morning.

 

[Moonlight]

Arif Habib clearly looks exhilerated. Stock Market will skyrocket in the morning.

View attachment 534788

Who even watched this show? There was this guy Khalid Qayyum who was completely unbearable to listen. Apparently, he was taking his personal grudges out on Asad Umar.

 

[Verve]

Looks like the Team IK is full of confidence vis-à-vis finances/economy etc.!!! They're not in the belt-tightening mode/mood!!! Good to see them in the offensive for he who fears being conquered is sure of defeat....

Another point about Pak's humongous parallel economy (non-filers but buys cars/houses etc.), which seems to be existing for real!!! Pak government might be trying to leverage it as much as possible...

Non filers are being roped in slowly. They will see the benefit of paying tax as the penalties for not paying will only increase as the tax collection institutes are strengthened.

Also which non filer's wife or kids will want to travel in a 1300cc car when they can easily afford a 1800cc car even after paying all the taxes? Depriving them of comfort and the luxuries the filers can have is a good tactic. Social domestic (home) pressures can do wonders.

 

[ziaulislam]

question is how would govt manage fiscal deficit

As huge tax releif has been given but without this Pakistan industry was simply not competitive

This also explain why govt tax target is relatively low this year..(4450billion) vs 37000 last year
But achieving this will not be easy..and could spell disaster for already high fiscal deficit of 5.1% (down from 6.6% or 10% if circular debt counted)

If govt achieves 5.1% of fiscal deficit without decreasing the development budget of around 700b than this will truly be a miracle

But if it has it has decrease development fund
Development has to be led by private sector not by PSDP

 

[VCheng]

question is how would govt manage fiscal deficit

As huge tax releif has been given but without this Pakistan industry was simply not competitive

This also explain why govt tax target is relatively low this year..(4450billion) vs 37000 last year
But achieving this will not be easy..and could spell disaster for already high fiscal deficit of 5.1% (down from 6.6% or 10% if circular debt counted)

If govt achieves 5.1% of fiscal deficit without decreasing the development budget of around 700b than this will truly be a miracle

The real question is what is the estimated impact on government fiances by the steps just announced? Is it going to be enough to avoid going to the IMF or not?

 

[Lucky Breeze]

Good. Please do some agriculture reforms. And take a step for economy documentation.

 

[ziaulislam]

Guess who wants to listen to fake Aristotle

The real question is what is the estimated impact on government fiances by the steps just announced? Is it going to be enough to avoid going to the IMF or not?

IMF can be avoided now if we talk about purely financing needs...given pacakagw of almost 20b from china saudi arabia and UAE but cost is the issue, gov has to roll over 30b$ of foreign loans which will be 1-2% expensive without IMF backing..also new projects from AB WB will be less likely

For example Egypt just signed an IMF pack for same reason of cheaper refinancing

 

[VCheng]

IMF can be avoided now if we talk about purely financing needs...given pacakagw of almost 20b from china saudi arabia and UAE but cost is the issue, gov has to roll over 30b$ of foreign loans which will be 1-2% expensive without IMF backing..also new projects from AB WB will be less likely

For example Egypt just signed an IMF pack for same reason of cheaper refinancing

If these measures work and IMF is avoided for this fiscal year, what happens for the next one starting in six months or so? The economy still remains precarious for the foreseeable future despite these hopeful signs of improvement.

 

[Yaseen1]

Corruption will continue as new cj has soft corner for ppp and he has also raised objection on govt plea to disqualify zardari .budget benefits will not be effective if corrupts are free