According to details, financial adviser Abdul Hafeez Sheikh while giving an interview to a foreign news agency said that the fiscal deficit will increase this financial year and the fiscal deficit is likely to remain at 9% due to the negative effects of Corona on the economy.
“Earlier, we expected the fiscal deficit to be 7.6 per cent, but now the fiscal deficit could increase from 8 per cent to 9 per cent, while the tax collection target will not be met due to Corona,” he said.
Abdul Hafeez Sheikh said that the tax collection target has been reduced. This year the tax collection target will be Rs 3.9 trillion. The tax collection target is 19 percent less than the target.
Referring to the IMF, he said that the International Monetary Fund provided ارب 1.38 billion under rapid financing.
This amount will be spent to solve the problems arising from Corona. The country’s economy is expected to shrink by one to one and a half percent this financial year.
The Finance Adviser said that Pakistan had set a growth target of 2.4% for the current financial year. Due to Corona, tax collections had a negative impact on exports.
Abdul Hafeez Sheikh said that Pakistan had requested the G20 to defer repayment of loans. Approval of the request would provide relief of 1. 1.8 billion to Pakistan.
He further said that the main objective of the forthcoming budget is to protect the economy and the people from the negative effects of the epidemic and all possible steps are being taken to continue the work in the export industries.
The Finance Adviser said that the fiscal deficit will be reduced in the next budget and the expenditure will be reduced to reduce the fiscal deficit.