Highlighting certain risks to fiscal sustainability, the federal govt. has reported its 6MFY21 fiscal deficit at 3.1% of GDP, or the highest-ever figure of PKR 1.39Tn in absolute terms. In its mid-year Budget Review Report, the Ministry of Finance conceded that there were certain risks to fiscal sustainability. During 1HFY21, an amount of PKR 116Bn was provided to combat the pandemic from the revalidated Economic Stimulus Package, including purchase of vaccines worth PKR 25bn. Moreover, PKR 64Bn was utilized under the Ehsaas Program to provide relief to vulnerable segments of society. The country’s overall fiscal deficit was, however, brought down by about PKR 255bn cash surplus provided by the four provinces.
2/3/2021