PAKISTAN FISCAL

BUDGET
2019-2020
AND THE IMF FINGER PRINTS ON IT
“AND THE VEIWS ON WHERE DOSE PAKISTAN’S
ECONOMY STANDS AFTER THAT”
o PRESENTED 11TH JULY 2019

o Federal Budget with a total outlay of 7022 billion rupees for the next fiscal year,

containing relief for the poor and measures for economic stabilization
relief allowance of 10 percent on running basic pay for civil government employees in

BPS grade 1 to 16, and employees of armed forces. Civil employees of BPS 17 to 20

will be given necessary relief allowance of five percent, while civil employees in BPS

21 and 22 will receive no increase in pay.

Increase in pension at 10 percent

will be given to all civil and armed

forces pensioners of the federal

government. Special conveyance

allowance for disabled employees

will be enhanced to Rs2,000/month

from Rs1,000/month
Aiming to reduce cost on
medicines

The government allocated

Rs40 billion in electricity
and gas subsidy for
industrial sector, aimed at
creating jobs, and another
Rs40 billion for export
development.
Defence expenditure is the biggest

head, for which Rs1.152 trillion was

earmarked against the revised

estimate of Rs1.138 trillion in

outgoing fiscal.
In the case of salaried individuals deriving income exceeding Rs.600,000,
eleven taxable slabs with progressive tax rates ranging from 5 percent to 35
percent are being introduced
LIKELY FACTS OF IMF PROGRAM AND ITS IMPACT
ON PAKISTAN ECONOMY

TO MEET THE PRE-CONDITIONS OF THE 6BILLION IMF FACILITY

o Purchasing power of common man
o the income tax exemption ceiling to Rs600,000 it has
wittingly or unwittingly brought a lot of burden on the fixed-
income salaried classes who are already coping with the
surging price inflation.
o The declining GDP
o Rupee depreciation
o Foreign exchanges becomes low
o External dept (lability and seek funds from friendly country)
o Health and educations (challenging)
o Investment on networks like CPEC will

continue to provide support to economy

o Reduce the unnecessary expenditure of the of

goverment
The annual variation rate of the CPI in Pakistan in July of 2019 was 10.3%, 14 tenths higher than the
month before. The monthly variation rate of the CPI (Consumer Price Index) has been 2.3%, and
thus the accumulated inflation in 2019 is 8%
Wholesales price index (WPI)
Producer Prices in Pakistan increased to 272.34 Index Points in July from 264.15 Index Points in June of 2019. Producer
Prices in Pakistan averaged 102.46 Index Points from 1989 until 2019, reaching an all time high of 272.34 Index Points in
July of 2019 and a record low of 20.05 Index Points in September of 1995
The Sensitive Price Index (SPI) is a weekly inflationary indicator that
measures the change in the cost of a fixed basket of goods and services
purchased by the households in the country.

The Sensitive Price Indicator (SPI) for the week ended July 11, 2019
registered an increase of 1.35% for the combined income group, going up
from 259.63 points during the week ended July 3, 2019 to 263.13 points in
the week under review
This Photo by Unknown Author is licensed under CC BY-NC-ND