ISLAMABAD: Pakistan has set a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the year starting July 1, a near 40 percent jump from the current year, to strengthen the case for a new bailout deal with the International Monetary Fund.
The ambitious revenue targets for the fiscal year through June 2025 were in line with analyst expectations.
Key objectives for the upcoming fiscal year included bringing the public debt-to-GDP ratio to sustainable levels and prioritising improvements in the balance of payments position, the government’s budget document showed.
Pakistan has projected a sharp drop in its fiscal deficit for the new financial year at 5.9 percent of GDP, from an upwardly revised estimate of 7.4 percent for the current year.
GDP would expand 2.4 percent in the current year, missing the budgeted target of 3.5 percent, the government said in its economic review on Tuesday, despite revenues being up 30 percent on the year, and the fiscal and current account deficits being under control.
Pakistan will look to widen the tax base to avoid burdening existing tax payers to meet its targets, Finance Minister Muhammad Aurangzeb said while presenting the budget.
While Pakistan is expected to stick to fiscal prudence under a new IMF program, growth will stay constrained, said Abid Suleri of the Sustainable Development Policy Institute think tank.
“Many of the measures taken to achieve fiscal sustainability will impact growth negatively, at least in the near future,” he said.
Pakistan is in talks with the IMF for a loan of about $6 billion to $8 billion, as it seeks to avert a default for an economy growing at the slowest pace in the region.
But a recent economic uptick, falling inflation and an interest rate cut on Monday have stirred government optimism over the prospects for growth.
The key policy rate could fall further this year and economic growth would continue to rise, Aurangzeb had told reporters a day before presenting his first budget.
Pakistan sets big Rs13 trillion revenue target for year to June 2025
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Pakistan sets big Rs13 trillion revenue target for year to June 2025
- Pakistan presents federal budget to strengthen case for new IMF loan agreement
- Pakistan has projected sharp drop in fiscal deficit for new financial year at 5.9 percent of GDP
Pakistan president meets UAE counterpart, explores trade, investment opportunities
- Asif Ali Zardari is in UAE on four-day visit to strengthen bilateral ties, review bilateral cooperation
- Both sides discuss regional, international developments, reaffirm commitment to promote peace
ISLAMABAD: President Asif Ali Zardari met his UAE counterpart Sheikh Mohammed bin Zayed Al-Nahyan in Abu Dhabi on Tuesday during which both sides explored new opportunities in trade, investment, energy and other sectors, Zardari's office said.
Zardari arrived in Abu Dhabi on Monday evening with a high-level delegation on a four-day official visit to the UAE to review trade, economic and security cooperation.
"The leaders discussed ways to further deepen the longstanding and brotherly relations between Pakistan and the UAE," a statement from Zardari's office said about his meeting with the UAE president.
"They reviewed the full spectrum of bilateral cooperation and explored new opportunities in trade, investment, energy, infrastructure, technology, and people-to-people exchanges, highlighting the significant potential for expanding economic and strategic partnership.
Zardari highlighted the significance of Al-Nayhan's visit to Pakistan last month, the statement said, expressing appreciation for the UAE's continued support for strengthening bilateral ties.
It said both sides also exchanged views on a range of regional and international developments, reaffirming their commitment to promoting peace, stability and sustainable development.
The meeting was also attended by Pakistan's First Lady Aseefa Bhutto-Zardari, the Pakistani president's son Bilawal Bhutto-Zardari, who is also the chairman of the Pakistan Peoples Party, Interior Minister Mohsin Naqvi and Pakistan's ambassador to the UAE.
ZARDARI MEETS AD PORTS CEO
Zardari earlier met AD Ports Group CEO Captain Mohamed Juma Al-Shamisi to discuss the group's investment initiatives in Karachi.
"Both sides agreed that the expansion and modernization of port infrastructure would strengthen trade flows and support Pakistan’s broader economic development and country’s seaborne trade," the President's Secretariat said in a statement.
It added that Zardari described the AD Ports Group's long-term investment and expanding role in Pakistan's maritime and logistics sector as a key pillar of Pakistan–UAE economic cooperation.
Pakistan and the UAE maintain close political and economic relations, with Abu Dhabi playing a pivotal role in supporting Islamabad during periods of financial stress through deposits, oil facilities and investment commitments.
The UAE is Pakistan's third-largest trading partner, after China and the United States, and a key destination for Pakistani exports, particularly food, textiles and construction services.
The Gulf state is also home to more than 1.5 million Pakistani expatriates, one of the largest overseas Pakistani communities in the world, who contribute billions of dollars annually in remittances, a crucial source of foreign exchange for Pakistan’s economy.
Beyond trade and labor ties, Pakistan and the UAE have steadily expanded defense and security cooperation over the years, including military training, joint exercises and collaboration in counter-terrorism and regional security matters.
