The federal government has also given more than Rs900 billion in grants against the budget estimate of Rs830 billion. MG Link is a leading source of data, Financial Market Intelligence and News. 3.9 trillion (9.2% of the GDP) due … News Desk. One thing Federal Reserve Chair Jerome Powell is unlikely to face from President Joe Biden is the barrage of Twitter attacks he was subject to, sometimes daily, under former president Donald Trump. Defense spending, though increasing in absolute terms, remained unchanged at 3 percent of GDP when compared with last year. On Wednesday, Adviser to Prime Minister for Commerce and Investment, Abdul Razak Dawood informed that the Temporary Economic Refinance Facility (TERF) providing long-term concessionary refinance at 5% for manufacturers and exporters has shown excellent results. Keywords: trade deficit, fiscal deficit, Granger causality, ARDL, Pakistan JEL Classification: E62, F14, H62 The trade deficit and fiscal deficit have attracted considerable research attention in the development economics because of a persistently large increase in these deficits across the lower competitive developed and developing countries. Table 4.1 depicts how Pakistan’s economy has shown its move on the fiscal front. Furthermore, the Pakistan Stock Exchange, on Wednesday and Thursday, issued a series of notifications to various companies inquiring about the unusual changes in the price and volume of their shares. Earlier, the government had estimated that Pakistan's fiscal deficit will reach at around 9.1% of GDP in FY20, against the original budget proposal of 7.1%, on the basis of Rs 1.24 trillion Covid-19 relief package announced by the government. 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We at Fitch Solutions have revised our forecast for Pakistan’s fiscal deficit to 10.8% of GDP in FY2019/20 (July-June) from 7.5% previously, and up from 9.0% in FY2018/19. That is a radical shift from the past, when central bankers would raise rates early to head off inflation. (Reuters/File) Pakistan’s budget deficit rose to the highest in almost three decades, ahead of the International Monetary Fund’s first quarterly review of a bailout program that sought to curtail a fiscal blowout.. Overshooting on inflation "shouldn't induce a loss of credibility, as long as they are able to convince people say that it's transitory and that this is absolutely part of what they're aiming for," she said. Low saving: The people of Pakistan … But the historic nature of the job losses during the pandemic -- more than 10 million US workers remain unemployed -- coupled with the likelihood inflation in some sectors could spike once the recovery takes hold, will test the Federal Reserve's limited toolkit. Till the close of 2019, Sukuk worth USD 1,247 billion have been issued globally. Same as the fiscal deficit in 1980s and 1990s remain 7.1% and 6.9% respectively and in 2000s it was reduced to 4.4% of GDP. ISLAMABAD: Putting country’s fiscal deficit at 1.7 per cent of GDP (Rs753 billion) in first four months of current fiscal year, the government on Thursday said … The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in its meeting held on Friday, in Karachi, decided to maintain the Policy Rate at 7 percent. In 2004-2005 the fiscal deficit was 3.3% of GDP however; it increased to 4.2% in 2006-2007. The revenue from taxes stood at Rs4.747 trillion. The IMF expects the budget deficit, the gap between expenditures and revenues, to be 6.7 percent of GDP in the current fiscal year. After slashing the benchmark lending rate to zero early in the coronavirus crisis, and massively increasing bond purchases to pump cash into the economy, the FOMC has signaled will not change policy in the near future. The statement added that the Sukuk market was growing rapidly around the world. December 25, 2020 (MLN): Pakistan’s fiscal deficit during July-October, FY2021 stood at 1.7% of GDP (Rs 753 billion) against 1.4% of GDP (Rs 564 billion) in the comparable period of last year. Pakistan's fiscal deficit has increased to 8.9 percent of the Gross Domestic Product (GDP) in the fiscal year that ended in June, marking a three-decade Malaysia known to be as a global leader in Sukuk market, it said, adding other important issuers were Saudi Arabia, UAE, Qatar, Oman, Jordan, Turkey, Morrocco and Indonesia. Economy of Pakistan Karachi, the financial centre of Pakistan Currency Pakistani rupee (PKR, ₨) Fixed exchange rates $1=160Rs (Jan 2021) Fiscal year 1 July – 30 June Trade organisations ECO, SAFTA, WTO, and others Country group Developing/Emerging Lower-middle income economy Statistics Population 220,892,000 (2020) GDP $276 billion (nominal; 2019) $1.08 trillion (PPP ; 2020) GDP rank … Of this, about Rs 4.334 trillion came from federal revenues and Rs 413.6 billion came from provincial. Minister for Science Technology Fawad Chaudhry on Friday hoped that the government will soon finalize the mechanism for the successful implementation of 'EV Policy for 4-Wheelers' in the country to boost the economy, reduce pollution levels and generate employment in the transport sector. According to sources, the fiscal deficit was actually 8.1pc in June 2020 as compared to the revised estimates of 9.1pc published in the budget. 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