KCCI Post Budget Report-Federal Budget FY21 - An Illusion of Relief_
Published in: June 2020
The entire Globe is experiencing some of the toughest economic and social times in recent history. Sadly, the global slowdown came at a time when Pakistan had just started to recover from its own economic crisis and was on its way towards recovery. In addition to its pre-existing hardships including record debt, managing the IMF bailout package and enforcing measures demanded by the Financial Action Task Force (FATF), the country has been hit hard by the COVID-19 pandemic and its resulting global economic slowdown. The government’s efforts to control the situation were off to a rocky start and the people of Pakistan relied on its leadership to tackle the prevailing crisis by providing relief through the FY21 Budget. The high pre-budget expectations were let down by the government which presented a budget that gave relief to only a handful of the sectors and largely left out the rest. Although the budget did not introduce any new taxes as promised, a number of existing tax rates were increased and the stakeholders of Pakistan’s economy remained largely unimpressed. The FY21 budget failed to address the country’s woes affectively. Only time will tell how the government is able to restore the confidence of the business and industrial community, which is the economic engine of Pakistan but is overlooked by the budget.