Scribd
Upload
54 views13 pages

Salient Features of Budget 2014-15 of Pakistan

The federal budget for fiscal year 2014-15 in Pakistan totaled PKR 4.3 trillion, an 8% increase from the previous year. Some key points of the budget were that it aimed to stabilize the economy by obtaining an IMF loan, raising funds through 3G/4G spectrum auctions, and reducing power shortages. GDP growth slightly improved to 4.1% compared to 3.7% in previous years. Measures were also announced to improve tax collection, reduce customs duties and the trade deficit, and support sectors like industrialization and hybrid vehicles.

Uploaded by

Hameed Gul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
54 views13 pages

Salient Features of Budget 2014-15 of Pakistan

The federal budget for fiscal year 2014-15 in Pakistan totaled PKR 4.3 trillion, an 8% increase from the previous year. Some key points of the budget were that it aimed to stabilize the economy by obtaining an IMF loan, raising funds through 3G/4G spectrum auctions, and reducing power shortages. GDP growth slightly improved to 4.1% compared to 3.7% in previous years. Measures were also announced to improve tax collection, reduce customs duties and the trade deficit, and support sectors like industrialization and hybrid vehicles.

Uploaded by

Hameed Gul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 13

Salient features of

Budget 2014-15 of
Pakistan

Presented By: Aasim Mushtaq


Roll No: 08
3rd Semester

Federal Budget: A review


The federal budget for fiscal year 2014-15
is the second Budget of PML(Ns)
Government for FY15 was presented on
3rd June, 2014 by the Finance Minister,
Mr. Ishaq Dar with aggregate total outlay
of PKR 4.3 trillion which is 8% higher
than last years budget.

Economic Review
The key feature of the current fiscal year was the stabilization of the
economy to certain extent through

Obtaining IMFs Extended Fund Facility (EFF)


A billion dollar from auction of 3G / 4G licenses
Raising loans from international money market
Clearance of circular debt of power sector that
resulted in some reduction in the power shortages
Privatization program during the year

GDP Growth
Real GDP growth of 4.1% during FY14 has slightly
improved compared to earlier three years average
growth of around 3.7%
The main contributor to slight improvement in the
GDP growth was the industrial sector

Foreign Exchange

The US Dollar to PKR exchange rate has virtually


remained the same as it was at the start of the year,
and is showing signs of stabilization
Due to EFF and auction of 3G/4G the PKR
exchange rate was improved
After rising sharply to a level of PKR 108 / USD, it
now resides in a stable range of PKR 98-100 / USD

Tax Collection
Since last few years tax collection as a percentage of
GDP has remained around 10%, which is one of the
lowest in the world and one of the prime reason of
high fiscal deficit. However, during FY14 government
has been successful in improving tax to GDP ratio to
10.6%, which is slightly lower than the budgetary
target of 10.9% but is significantly better than
previous average.

Energy Crises
The current years growth of power and gas
sectors remained just 3.7%, slightly better
than last years negative growth.
The country still remains dependent on
thermal generation based on imported fuel
which is the most expensive and is the core
reason for electricity crisis and circular
debt.

Employment

Unemployed workforce has increased significantly


since 2008 and has risen to 3.8 million
The un-employment rate has climbed to 6.2%
The problem of unemployment continues to
escalate year after year

Customs Budgetary Measures


In order to encourage industrialization
many Division exempted from whole of
customs duty
Maximum general tariff rate of 30% reduced
to 25%
Exemption of duty and taxes on Hybrid
Electric Vehicles (HEVs)

Sales Tax & Federal Excise


The budgetary measures pertaining to Sales Tax & Federal Excise are
primarily aimed at:

Rationalization of sales tax on steel sector,


ship breakers and steel melters
Registration of retailers on two tier system
basis
Restricting undue claims of input tax

Trade deficit
Pakistans trade deficit has increased to
61% of exports in FY14 from 28% in FY05
The trade gap has increased owing to
increase in imports of consumable items
highest being petroleum, food and
agricultural products

Workers Remittances
Workers remittances have
continued to rise contributing
materially towards foreign
exchange inflows of the country.

Thank you

You might also like