Pakistan Fiscal Crisis: Revenues Fall Short of Rising Costs
Pakistan's fiscal crisis worsens as recurrent spending surges while tax and non-tax revenues miss targets. Structural reforms are urgent to avoid a deeper crisis.
Pakistan's fiscal crisis worsens as recurrent spending surges while tax and non-tax revenues miss targets. Structural reforms are urgent to avoid a deeper crisis.
Pakistan's IMF programme has improved inflation, reserves, and fiscal discipline, but challenges in growth, debt, exports, and social impact remain. Sustained reforms are key.
Trade bodies and business leaders across Pakistan praise Federal Budget 2026-27 as a business-friendly, growth-driven fiscal roadmap, highlighting measures to boost investment and sustainable development.
Pakistan Business Forum and Salt Manufacturers Association criticize federal budget 2026-27 for lacking transformative measures to boost exports, industry, and agriculture, while noting some tax relief.
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RecommendedSM Tanveer, UBG Patron-in-Chief, praises federal budget 2026-27 as growth-oriented, citing tax cuts, real estate relief, and export incentives key to reviving Pakistan's economy.
Finance Minister Aurangzeb presents Rs18.8tr budget, abolishing advance tax for exporters, reducing raw material duties, and targeting economic growth with foreign loans.
Punjab CM Maryam Nawaz congratulates PM Shehbaz Sharif on the federal budget, calling it a people-friendly, welfare-oriented package ensuring economic stability benefits reach the public.
Pakistan unveiled a Rs18.8 trillion budget for FY2026-27, focusing on debt servicing, defence, and global integration, but lacking allocations for education, health, IT, and agriculture.
PTI rejected the federal budget for 2026-27, criticizing it as pro-rich and anti-common man. Party leader Sheikh Waqas Akram accused the government of using manipulated figures and failing to provide relief.
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RecommendedThe federal government raised minimum wage by 10% to Rs40,700 and abolished surcharge on salaried individuals in Budget 2026-27, aiming to support low-income workers and ease tax burden.
Pakistan's government proposes Rs1 trillion PSDP in Rs17.5 trillion budget for FY2026-27, with GDP growth target of 4% and inflation at 8.2%. Key allocations include water resources, NHA, and HEC.
Pakistan Economic Survey 2025-26 reveals missed growth, investment, and savings targets, but highlights external stability and broad-based recovery despite Middle East war impacts.
A Philippine town mayor urgently requests helicopters to deliver food to isolated villages after a 7.8 magnitude earthquake, which killed 47 and injured 688.
Oil prices jumped over $1 as Iran closed the Strait of Hormuz after US strikes, with Brent at $94.58 and WTI at $91.74, amid fears of supply disruptions.
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RecommendedEgypt's tourism revenues rose 14.9% to $14.4bn in the first nine months of the fiscal year, while remittances hit $34.9bn and inflation eased to 13%.
Discover the top 5 cooling mattresses in Pakistan for 2026, including Supreme GelCool, Dolce Vita, and more. Beat the summer heat with advanced gel-infused foam and breathable designs.
Pakistan's economic future hinges not on industrialisation alone but on boosting productivity across all sectors through accessible technology and institutional reforms.
As Pakistan's budget approaches, overseas Pakistanis sent $38 billion in remittances, far surpassing export sectors. It's time the budget prioritizes them over corporate lobbies.
Pakistan's Incremental Capital Output Ratio (ICOR) has risen to 5-7, meaning public investment is inefficient, contributing barely 0.14% to GDP growth. Reforms are urgently needed.
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RecommendedPakistan's savings rate has dropped to 6.4%, the lowest in three decades, with citizens saving only Rs6 per Rs100 earned. PIDE warns this could deepen investment crisis and increase IMF dependency.
Pakistan's low tax-to-GDP ratio persists despite reforms, burdening compliant sectors. Broadening the tax base equitably is crucial for sustainable development and reducing reliance on IMF programmes.
Azhar Baloch of MCCI calls for sustainable policies, tax reforms, and export boost in federal budget 2026-27 to support industry and investment.
OECD forecasts Saudi GDP growth of 4.3% in 2027, driven by non-oil sector and domestic demand, despite Middle East tensions impacting oil exports.
Saudi Arabia's resilient economy, boosted by domestic demand and Red Sea trade, attracts Gulf businesses despite regional conflict, with non-oil sector growth and tourism rise.
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RecommendedPakistan will present its federal budget for fiscal year 2026-27 on June 10 after coalition consultations, aiming to outline fiscal plans under an IMF program.
Prime Minister Shehbaz Sharif met industrialists to discuss economic policy and budget 2026-27, focusing on export-led growth, investment, and job creation.
Pakistan's federal budget focuses on fiscal discipline, revenue mobilisation, and IMF-aligned reforms, with targets of 4.1% GDP growth, 8.4% inflation, and 2% primary surplus.
Prime Minister Shehbaz Sharif emphasizes industrial development and foreign investment as vital for sustainable economic growth and long-term prosperity in Pakistan.
Pakistan's government approved a 4% economic growth target for FY2026-27, lower than the current year's target, as it struggles with low exports and high imports. Inflation target set at 8.2%.
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RecommendedPIAF appreciates the government's Rs200 billion tariff relief for industry but calls for comprehensive reforms to boost competitiveness and exports.