Monitoring Desk: Bloomberg in its report about Pakistan’s economy has indicated that total revenue collection declined by 20% in first quarter of Pakistan’s fiscal year.
Report indicates that total revenue declined by 20% in the latest quarter due to a 98% decline in non-tax revenue and there is a chance for mini budget to raise taxes in order to clear the next IMF quarterly review.
Although Pakistan fixes fuel surcharges every month and passes on to consumers, it seems that that budget gap which rose to 8.9% in year ended June from 6.6% year ago and low revenue collection trend are not promising indicators for Pakistan.
According to Bloomberg report title “Pakistan’s Fiscal Deficit Rises to Highest Level in 28 Years” If target for the quarter (July-September) is not met then announcement of a mini budget to raise taxes is possible in order to clear the next IMF quarterly review.
According to report, the total revenue declined by 20% in the latest quarter due to a 98% decline in non-tax revenue indicates financial situation Pakistan is going through.
Report indicates that Pakistan must also increase government revenue by more than 40% in the fiscal year that began in July, as part of the conditions for a $6 billion loan. Pakistan’s loan from the IMF could be in jeopardy if the trend of the government missing revenue target continues.
