Tough economic outlook amid uncertainty

Inayat-ur-Rahman, Business Editor

Pakistan has presented Rs9.5 trillion budget amid political upheaval and fragilities globally. Controlling inflation, along with debt servicing and turning around the economy remains the major focus of the of new coilation government of Prime Minister Shahbaz Sharif. Gulf Today spoke to Kashif Ansari, Group CEO of Juwai IQI an international real estate technology group with offices in 23 countries to get his views on the budget outlook and it’s impact on the people.

Ansari mentioned that yesterday’s budget presented is aimed to improve the economic outlook and to deliver positive outcomes under arduous times. “Numbers are ambitious and targets are huge in the budget. The new government really needs to work very very hard to make solid turnaround to achieve growth trajectory in the next 3-4 quarters.” Ansari added.  He noted that economy remains fragile amid global uncertainty at present.” “Investors want government to maintain macroeconomic stability to attract investment not only from local investors but also from foreign investors.” “Country has to hike oil, gas and electricity prices in order to meet IMF loans conditionalities.” Ansari added.

During FY23 the size of budget will be Rs8894 billion. Revenue target for FY23 will be Rs7255 billion  For FY23 target of non-tax will be Rs1626 billion. Federal government to transfer Rs4215 billion to provinces. Government to set non-tax revenue target of Rs1626 billion for FY23. Petroleum levy target set Rs550 billion.

Sbp profit expected at Rs200 billion. Divided income from state run expected at Rs245 billion.

During FY23 subsidy amount would likely be Rs578 billion. Subsidy amount of Rs500 billion for FY23 proposed. IPPs to get Rs190 billion subsidy for FY23.

Government has proposed Rs800 billion as Public Support Development Programme (PSDP) for 2022-23.  The new coilation government aims to finance Rs 730 billion from local sources and Rs70 billion from foreign funding.

Government proposes Rs 121 billion for National Highway Authority NHA, power sector Rs49 billion, water Rs96 billion, railways Rs33 billion