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Covid-19 scourge: World Bank projects rising public debt, increasing poverty


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April 7, 2021
ISLAMABAD: While presenting a dismal picture about Pakistan’s economy, the World Bank has projected rising public debt, increasing poverty, and low GDP growth in the range of 1.3 percent for the current fiscal year.
The WB released Pakistan Development Update on Tuesday and said that the country s Public and Publicly Guaranteed Debt (PPGD) to-GDP ratio is projected to peak at 94.4 percent of GDP by end-FY22 on account of elevated fiscal deficits, before easing to 94.1 percent of GDP by FY23. “The decline in the PPGD-to-GDP ratio will be mainly due to moderately higher economic growth and declining primary deficits” the WB made it clear. ....

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COVID-19: Fiscal deficit shoots up to 8.6pc of GDP


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February 7, 2021
ISLAMABAD: The government has admitted in its fiscal policy statement before Parliament that it breached its envisaged target under Fiscal Responsibility and Debt Limitation Act 2005 for reducing fiscal deficit and maintaining total public debt within prudent limits.
In its report submitted before Parliament in its recent session, the Ministry of Finance stated that the federal fiscal deficit excluding grants was recorded at Rs 3,601 billion or 8.6 percent of GDP during financial year 2019-20 thus remaining higher than the threshold prescribed in the Fiscal Responsibility and Debt Limitation Act 2005 2005. The government tried to explain that in the aftermath of COVID-19 pandemic the situation went out of control but this departure is temporary and the government took a number of steps to reverse the trend. The policy statement conceded that the debt per capita is rising and now standing at Rs 175,000 on each Pakistani national. The governme ....

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