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Pakistan to exceed revenue target in FY22: Shaukat Tarin

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3 years ago

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  • Tarin says revenue will hit Rs6.1tr, compared to a target of Rs5.8tr.
  • He is confident of defending PM’s subsidy package during IMF review.
  • “IMF shouldn’t have any objections on this,” finance minister says.

ISLAMABAD: Pakistan will exceed the revenue target set in the annual budget for the current financial year, Finance Minister Shaukat Tarin said on Wednesday.

Tarin said revenue would hit Rs6.1 trillion ($34.2 billion), compared to a target of Rs5.8 trillion.

“Despite that, I gave the target of 5.8 trillion, I’m going to hit at 6.1 trillion, and I’m tracking,” he told a news conference in Islamabad.

He said a recent fuel and electricity subsidy package announced by Prime Minister Imran Khan would be partially financed by the extra revenue, which may cause the fiscal deficit to slightly rise or fall.

“If due to that the deficit may go a bit 0.5% up or down, that may be,” he said.

Read more: Shaukat Tarin opposes PM Imran Khan’s public outburst against EU envoys

Embattled PM Imran Khan, facing a no-confidence move to oust him from office by opposition parties, announced a cut in petrol and electricity prices on Monday despite a steep rise in the global oil market, pledging to freeze the new rates until the next budget in June.

The subsidy will cost around $1.5 billion, a big number for Pakistan to defend during the International Monetary Fund (IMF) 7th review, which already has started, of a $6 billion rescue package agreed in 2019.

The south Asian country had to undertake fiscal tightening measures to pass its last IMF review, which was delayed by months as the government struggled to complete prior action required by the lender to release $1 billion in February.

The finance ministry has said that Pakistan was confident it will be able to defend its subsidy package during the IMF review, which Tarin also reiterated.

“We are doing it with our own revenues, which has improved. We have a space for that,” he said. “So, IMF shouldn’t have any objections on this.”

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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