ISLAMABAD: The Prime Minister’s economic team has informed him of the economic difficulties faced during the first year of the government.
The Prime Minister has been informed that the current fiscal year’s budget deficit is Rs 700 billion or 1.6 percent of GDP and this situation is beyond the control of the government. The budget deficit for the IMF program during this fiscal year is 0.6 of GDP. It was guaranteed to bring up to 25 percent or 255 billion rupees.
Finance sources say that during the meeting, the Prime Minister directed his economic team to take small steps to overcome the budget deficit.
The Prime Minister was told that the overall budget deficit was Rs 3.43 trillion or 8.9 percent of GDP, which is more than Rs 2.5 billion more than the deficit previously reported by the finance ministry. The government has only one option to overcome this deficit. Is to either cut the development budget or increase taxes.
During the meeting, the Prime Minister emphasized that NAB laws are the biggest hurdle in restoring business activities. They should be changed. Finance Minister Hafiz Sheikh did not mention in his press briefing.