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SCHEME OF PRESENTATION
INTRODUCTION TO BUDGET

ISSUES OF PAKISTAN’S BUDGET

SUGGESTIONS

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 INTRODUCTION TO BUDGETING

Budgeting is the process of setting financial goals,

forecasting future financial resources and needs,
monitoring and controlling income and
expenditures, and evaluating progress towards
achieving the financial goals

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 ISSUES OF PAKISTAN BUDGET
Out of the Pakistan’s total budget almost 38% is spent on
interest payments

In order to meet the budgetary deficit, Government is

borrowing loans from domestic financial agencies/Commercial
Banks and Int. agencies i.e. IMF, World Bank, Asian Bank etc.

The international agencies impose strict conditions on the

government to ensure recovery of their loans including high
interest rates

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 ISSUES OF PAKISTAN BUDGET
Government rely on withholding and indirect taxes to decrease the
budgetary deficit instead of taking some revolutionary reforms in tax
system
Current Government has taken some initiatives to give some
insensitive to tax payers to motivate the people for contribution in
country taxes

All Commercial and National Banks have been linked up with SBP and
FBR for monitoring all transactions

But due to complexity of our tax system generally people frightened to

registered themselves in tax net. Resultantly Pakistan couldn't achieve
their annual tax target

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 ISSUES OF PAKISTAN BUDGET

The budget does not include proposals to improve governance

to reduce the cost of doing business or to develop the capital
market as a genuine source of funding

Pakistan is an agricultural country and this sector is being

neglected and major share of the subsidy is spent on the
industrial sector

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SUGGESTIONS TO IMPROVE BUDGETARY SYSTEM

Government should raise rate of taxes especially on rich people and any new
taxes where possible.

Fiscal deficit can be met by borrowing from domestic sources. Borrowing

from public to deal with deficit is considered better than foreign financing

Increase productivity-enhancing investments (spending on the right type of

physical infrastructure, on skills development etc.)

Cut public expenses to reduce fiscal deficit

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